THE technology sector has been in the headlines recently following confirmation of further corporate activity in the industry.
Indeed, market-leading technology businesses such as Apple and Microsoft have a substantial amount of financial flexibility which may be used to position the organisation for the longer term through organic growth or the acquisition of a competitor.
With this in mind, the introduction of the smartphone has created a lucrative new market where innovation has been the key. Apple made the first real move into this market following the launch of the iPhone, which has developed over time to become a convenient part of every day living. Competitors have followed with a number of organisations including household names such as HTC, LG and Samsung, launching new products into the smartphone market. While Apple uses its own software to run the iPhone, a number of manufacturers have selected Google’s Android operating platform, which has been viewed very positively by customers.
Earlier this month, Google announced that it had made an offer for mobile phone company Motorola Mobility to increase its presence in the smartphone market. The technology giant believes that the acquisition will support the expansion of its Android operating platform.
It will also give Google its first manufacturing base to produce handsets and will place the group in direct competition with Apple. Indeed, this may be the first step to integrate Google’s operating system into a smartphone manufactured and produced by the company.
However, the internet giant has been quick to suppress fears that the Android operating platform will become exclusive to Google mobile phones and stated that the system will remain open for use by the industry. In addition, Google will also gain access to an array of patents and intellectual property rights through the acquisition but also access to the TV set top box market.
However, Google is not the only heavyweight building for the future. Closer to home in the UK, it has been confirmed that an offer has been made for FTSE 100 business Autonomy by US giant Hewlett-Packard (HP). Autonomy is a very interesting business that runs intelligent software that can warehouse complex commercial data but also provide organisation and access to the information.
The coming together of Autonomy and HP will enable the group’s range of products to be promoted on a global stage and dovetails with HP’s target to expand into the information optimisation market.
Looking forward, technology is becoming an ever more present part of every day life not just for the customer in the street but also on a corporate level.
