August 2011: The Month that Rumbled the IT World

HP CEO Leo Apotheker

August 2011 was the month that witnessed many rise and falls in IT world. Google made its biggest acquisition ever by buying Motorola Mobility for $12.5 billion. In mean time, HP gave up efforts to compete its contemporaries with the help of tablets and mobile OS. Two days back Tech legend Steve Jobs stepped down as Apple Inc CEO keeping whole world into shocked condition. The Geeks Club explores hidden reasons and possible future of these happenings for our readers.

Google Buys Motorola Mobility

Google, renowned for its Search Algorithms and Android OS, stepped into hardware counterpart of Smartphone business by sealing the deal with Motorola Mobility. Deal amount is priced at $12.5 billion counting to $40 per share, which Google Inc has agreed to pay in cash.


Android has been crowned as most installed mobile OS since its launch. On the other hand, Motorola was struggling to make its impact in Smartphone market, thanks to competitions from Apple Inc., Samsung and other manufacturers. This deal is said to be have driven Motorola into living room and has provided Android its own platform for improvements. But is the deal really straightforward the way it looks?

Apart from entering into hardware telecommunication industry, Google is set to achieve a lot more from this deal. Google founder Larry Page has been spotted saying that this deal will help Google strengthen their side in patent war against Microsoft and Apple Inc. Motorola is believed to own over 17,000 patents including the one for cellular phone technology that dates back to 1970. Acquisition of all these patents will help Google stand strong against anti-competitive attacks on Android platform by its competitors.

Google Trio

Motorola Mobility CEO said in one interview that combination of one software maker and one hardware manufacturer will result into something unbelievable that will help Motorola bring back its golden days. Martin Cooper, who spent 30 years of his life at Motorola, agrees with Motorola Mobility CEO Sanjay Jha.

Android was an open platform and it will remain the same as declared by Page. Being open platform, it has been extensively used by Samsung and HTC in their respective Smartphones. Deal with Motorola makes Google partner as well as competitor of Samsung and HTC. However, HTC, Samsung and LG have welcomed the deal saying it will revolutionize the industry.


It will be really interesting to see what is lying ahead of this massive money exchange deal. Google Inc’s true intention of the deal, which can be either patents or own hardware support, will play vital role in deciding the future of this deal.

HP Dumps WebOS and Logs Off from PC Business

When Tech world was digesting Google’s move, news burst out that kept our mouth open. HP announced to shut down all its WebOS related activates and also will log off from consumer electronics business concentrating on providing business solutions. IBM rumbled the world six years back by stepping out of PC business, this time its HP. Though HP recorded $567 million profit last quarter this year, profit margin is not enough to advance and adopt new technologies to stay in competition as stated by officials.


HP bought Palm Inc last year for $1.8 billion. WebOS was considered as the major reason of this acquisition as HP was looking forward to take on challenges from Apple Inc’s iOS and Google Inc’s Android. But now it seems that HP’s efforts have went in vain. This decision will ultimately shut down production of HP Pre3, WebOS based Smartphone, and HP Touchpad, WebOS based tablet launched six months ago. These devices did not get sold as per company’s expectations that made HP come up to this decision.

HP’s efforts to compete with contemporaries were proving difficult financially as confirmed by CEO Leo Apotheker. He also said that now HP wants to sharpen their focus on business solutions and quit from consumer electronics competition. In order to concentrate on business solutions, HP has decided to buy UK based company, Autonomy. Autonomy creates software related to business activities like mail retrieving, document and other media organization and so on. This move is expected to cost $10.3 billion to HP.

HP CEO Leo Apotheker

Tracing some time back, HP CEO had declared about licensing WebOS and using it for larger machines like cars. Now, HP’s decision over WebOS is still in dark as officials have not made any comment about it. Company might use it as asset or might sell it to the party that offers more benefit.

Steve Jobs Stepped Down as Apple CEO

With first two weeks of August rumbling tech world, this week brought something unexpected and unbelievable. Apple Inc’s CEO and technology legend, Steve Jobs stepped down from his authority over consistent health problems. Tim Cook will serve as CEO where Steve Jobs will acquire chairman’s position.

It was year 2002, since when Steve Jobs has been consistently in news due to health issue. It all started with detection of pancreas cancer, which was treated successfully. Later, Steve undergone liver transplant that made him take compulsory leave of four months in 2004. Earlier this year, Steve Jobs took another medical leave but appeared on desk unveiling iPad 2 in March. History repeated itself in June this year when he abruptly came back from leave and unveiled iOS 5 and iCloud. Finally, 2 days back he filed a letter to Apple Inc’s board stating his resignation as CEO.


During his career at Apple, Jobs came up with many incredible products. Some of them achieved new heights of popularity while some of them failed to attract the world. But it was Steve Jobs creativity and ability to judge market trend that made Apple survive and become world’s biggest IT manufactures.  Our readers can check out this Infographic to explore the life of Steve Jobs.


Now main question is whether Apple Inc will be able to maintain the glory and success it had achieved in Steve Jobs’ presence? According to most of experts, it is shock of few days and Apple will continue to be the king of technical market. Everyone will be eager to watch what happens next and if Tim can take Apple to new heights.

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