Motorola buys Symbol: RAZR goes RUGD?

Pauline Trotter, Principal Analyst

Motorola has announced that it is to acquire Symbol Technologies in a $3.9 billion cash deal. Motorola says that the acquisition brings it closer to its aim of delivering seamless mobility, which will broaden and strengthen its enterprise mobility product portfolio, as well as bring new channels to market.

Despite the 'design mismatch' between the sleek Motorola phones and the chunky ruggedised devices that are the hallmark of Symbol - this move makes a whole lot of sense. Symbol has both history and credibility in enterprise mobility, having been in the enterprise device market for more than 20 years. For example, it co-wrote the 802.11 standards, which were essential for its own product development. Symbol is best known for its mobile computing devices - barcode scanners and data-entry devices - designed for 'blue collar' mobile workers, particularly in the retail, logistics and manufacturing sectors. But it has also made moves into the professional/executive market with an industrial-strength 'durable' wireless PDA. Late last year Symbol announced it was collaborating with Avaya to use Avaya's softphone on its MC50 device, in effect developing a dual-mode (WiFi/VoWiFi) capability. But one of Symbol's key strengths is its understanding of the issues surrounding device management, which are increasingly important to enterprises of all types.

Motorola also has genuine strengths and credibility in specific verticals - in its case these are in government, utilities and emergency services - particularly in respect of support for frontline, blue-collar functions. It has strong channels for its mobile radio products which might prove a good match for Symbol products too. Interestingly, Motorola also had a partnership with Avaya to develop a fixed-mobile convergence solution, although it seemed to be backing off from this project earlier this year. (More detail on Motorola's strategy can be found in Motorola's strategy for enterprise mobility, in our EnterpriseMobility@Ovum service.)

Pauline Trotter is a principal analyst specialising in enterprise communications, and is responsible for Ovum's research among enterprise users, from SMEs to large multinationals. She contributes to both the EnterpriseMobility@Ovum and IP-Enterprise@Ovum advisory services, most recently in the areas of fixed-mobile convergence, remote access and IP telephony.