The Indian offices of Google and Motorola Mobility are likely to continue to work independently though there is no word yet on job cuts.
“The India development centres of both Google and Motorola could work in collaboration. Since the hardware business would continue to be a separate business, there is equal chance that both the centres would continue working independently,” said Mr Praveen Bhadada, Director, Zinnov Management Consulting, said in a press note.
The Bangalore centre of Motorola Mobility works on set-top boxes for the US market.
For Indian enterprises, this acquisition would also have significant implications, said Mr Bhadada. “Tablets and smartphones are becoming the mode of interactions internally as well as externally. Most CIOs now have a tablet strategy and are making some business flows available on tablets and smartphones. India is one of the fastest growing tablet markets in the world and Google can unleash the potential of this market with Android and Motorola combination with products like Xoom,” he said.
One analyst who didn't agree with Mr Bhadada on the India impact angle was Mr Anshul Gupta, Principal Research Analyst, Gartner. “In India, the market is very small and I don't see any major impact. Globally, I don't think that Google would like to compete with Android phonemakers like HTC and Samsung and would keep its handset business separate from its Android business. Android will still be an open OS,” he said
Mr Naveen Mishra, Lead Analyst, Telecoms Practice, CyberMedia Research, said that Motorola Mobility's patents would help Google.
“The approximately 17,000 patents that Motorola Mobility has in its kitty will help Google create a very differentiated set of smartphone products," he said.