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Motorola's Good Buy
The company plans to improve its mobile computing capabilities and increase its enterprise customer base through the acquisition of Good Technology.
Posted Nov 13, 2006
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Motorola will acquire Good Technology as part of Motorola's Mobile Devices business unit, a move Motorola hopes will allow it to build out its mobile computing functionalities and help it become more attractive to enterprise customers. The companies announced on Friday that they had signed a definitive agreement, the terms of which were not disclosed. The acquisition is expected to close in early 2007. Good Technology's handheld security and wireless messaging offerings will prove especially beneficial for Motorola, according to the company. "The addition of Good Technology will advance Motorola's vision of seamless mobility," said Ron Garriques, president of Motorola Mobile Devices business, in a press release. "Good Technology's software and managed service deliver a rich user experience, low cost of ownership, industry-leading security and enterprise-class support." Good Technology's high-level functionality has already enabled the company to grow its customer base to 12,000 enterprises around the globe, all of which will be picked up by Motorola under the acquisition. Good Technology's flagship solutions include Good Mobile Messaging, Good Mobile Intranet, and Good Mobile Defense. The two companies previously held a business relationship through the use of Good mobile messaging technology on the Motorola Q. According to Motorola, the two companies' development teams are currently working together to optimize Good Technology's enterprise mobile computing solution and to drive it into new market segments and application areas. Motorola underscored Good Technology's security offerings as a major differentiator in the acquisition. Good Technology delivers to businesses, rather than consumers, at a more concentrated level than Motorola, and the security offerings may now allow Motorola to become more attractive to business customers. Denis Pombriant, founder and managing principal at Beagle Research says, "Security in all forms has become a greater priority over the last few years as more and more companies are entering the market to do things illegally that you might not want done to your infrastructure." Pombriant also explains that in a post-9/11 world, the call for security has become higher across the board, pressuring companies to invest in highly secure technologies.
Pombriant says the acquisition will help Motorola to move to a larger business client base. "It bolsters their own platform into the enterprise market specifically." Pombriant explains that in order to do so, it is crucial to build out the functionality of Motorola's solution. "Increasingly, we're coming rapidly to see that it's not enough to have great infrastructure, but it's equally important to have a whole product." Related articles: The 2006 Service Leader Awards, Part 1 Required Reading: The Mobile Revolution Rings True Mobile Enterprise Strategy: More Money for '07
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