Google plan to buy Motorola Mobility an explosive development in tech world

[Commentary] As far as explosive developments in the world of technology go, Google’s $12.5 billion deal for Motorola’s Mobility business is tantamount to detonating a nuclear bomb ... a big one.

Ownership of that company will hand Google substantial businesses that it has previously flirted with but never committed to. Notably, the business of producing and selling its own hardware for smartphones and tablets, and the not-insignificant side business of manufacturing and designing TV set-top boxes used by cable providers. But there are bigger questions here. Google licenses the Android operating system to phone-making partners such as Samsung, HTC and LG; how can Google turn around and compete with those companies? How will Google manufacture smartphones with Motorola while providing the newest innovations to partners that are now its rivals? And why exactly does Google — until now, a purely Web- and software-focused company — want to be in the hardware business? Google will undoubtedly see advantages in using Motorola’s expertise to design hardware and software side by side. And Google will need to hold its market position against Apple’s tightly integrated devices and services, as well as the new partnership between Microsoft and Nokia. The landscape of the mobile industry is quickly becoming all about that synergy of hardware and software. Can Google ignore the trend?