Google Buys Motorola - For Patents

I meant to sit down and comment yesterday on the news that Google plans to purchase Motorola Mobility for $12.5 billion. It is a staggering development that furthers the downward slide of Motorola as an innovating technology pioneer and bellwether.

The deal marks the end of independence for a company that helped pioneer mobile phones and introduced its first consumer handset in the early 1980s.

Motorola announced a plan to spin off its mobile-phone business in March 2008 amid market share losses and pressure from billionaire Icahn. The company completed the split in January, after the global recession delayed the deal. Motorola Inc. became Motorola Solutions Inc., which makes radio equipment for emergency workers and scanning devices for retailers.

I began my career with Motorola, first working for the company (then well over 120,000 employees worldwide) as a cooperative education student until graduating from college, then joining one of the company's telecommunication equipment making facilities as an electrical engineer doing modem design and product sustainment. In my naiveté, I really wanted to be a "company-man" and stay a Motorolan for my entire career. The 1990's saw a fierce battle waged for market position as enablers of the "Information Age" as it was so often described. When I started, we were developing 9600 baud modems, 2400 cellular modems (the beloved "bricks"), and CSUs/DSUs on the digital side. Then as analog communication standards were approved we quickly ramped to 14.4 bps, 28.8 bps, 33.6 bps all the way to the fight for 56K, then purported to be the fastest speed you could get over a standard phone line. Shortly afterwards, however, Motorola pulled the plug on the effort. From a cost of business standpoint, the company just could not compete. For despite the fact that Motorola quality almost always ranked near the top, thanks in part to a rigorous (and over-burdening) quality process (think Six Sigma and blame it on Motorola), the "cost" of that quality made our products less than price competitive. By 1998, the plant was shut down and operations consolidated elsewhere. I tried to stick with the company a little longer, accepting a transfer to the Semiconductor Products Sector, but in time I was forced to accept that unless I was willing to move to Schaumburg to work a Quality Management job, Motorola would not be in my long term future. So I moved on.

I continued to watch the company, although I'm not entirely sure why. I watched over time as they poured more and more resources into cell phones and pagers, and then dropping pagers. Eventually they sold (or spun off, depending on who you read) their semiconductor business. Recently, the company split in two, forming Motorola Mobility (the cell phone / smart phone commodity business unit) and Motorola Solutions (radios, IT and enterprise infrastructure). Now the latter is all that is left.

That the company was bought by Google is a little disconcerting. I find it funny how people scream about oil companies and profits and the like, when in my view the more suspect corporatist machinations revolve around the information industry (Google, Apple, Microsoft). What this deal gives Google is control over all the patents Motorola owns dating back to the early days of cellular and communications technology. Motorola once was an innovator. Now, it seems their value is based less on the work they do now, and more on work done in the past. It is sad, as an ex-Motorolan, to see the one-time leader fall so far. What they have left leaves them as one of many. Motorola is not dead, but they are no longer something special.

In my garage, on my workbench, is an old 1950's era AM radio built by Motorola. Although slow to power up, it still works. But largely, it is a forgotten artifact buried behind piles of toolboxes and scrap wood. Hopefully, the company will fare better than that radio. Because even though I haven't worked for the company in 13 years, I still would like to see them succeed.