Digital Bling

Motorola may be calling its $3.9 billion purchase of Symbol Technologies an enterprise move, but overtime we’ll see the combined force look to the consumer communications side.

Moto, one of the strongest names in wireless and mobile, will make the Holtsville, N.Y.-based company a wholly owned subsidiary and the cornerstone of its networks and enterprise business.

And with the purchase of Symbol -- by the way, its most costly acquisition since 2000 when Moto shelled out $17 billion for set-top-box maker General Instruments -- Moto gains all of Symbol’s RFID, mobile computing, data capture, wireless infrastructure and mobility management expertise.

Symbol is best known for its handheld scanners with integrated RFID to track goods and mostly runs with the manufacturing, government and retail crowds. But its scanner technologies (which neighbor Near Field Communications, a newer consumer RFID-based wireless that communicates over short distances) can be expanded beyond the markets Symbol currently serves to next-generation consumer devices.

Beyond RFID, Symbol has extensive experience with the 802.11 family. Moto is no slouch there, either, and with Symbol's portfolio the company can continue integrating cellular with 802.11 for better performance in cities. Further, while Symbol has no direct expertise here, Moto has been making its intentions toward WiMax very clear. Indeed, it just re-entered chip making to work on WiMax with the initial focus on functionality supporting voice, video and data for low power mobile applications in handsets and modules.

In the end, the deal immediately makes Moto the largest seller of handheld scanners with integrated RFID to track goods. But looking further out, what we will see, as Greg Brown, president of Moto’s network and enterprise business, put it, is “Wi-Fi on steroids extending to WiMax, with duel mode devices on top” where Moto’s knowledge in certification and designs of cellular handsets will shine.

On a more personal note, this is a big win for Holtsville, N.Y., part of Long Island and a stone’s throw from my home office where I sit typing this blog. The tech industry here has been suffering. While Arrow and SMSC have been pretty steady, Computer Associates, a big employer here, has faced scandal after scandal and has had numerous layoff casualties. Symbol’s future for years was questionable, as it was plagued by intellectual property disputes between it and Intermec Technologies. That recently cleared up, resulting in cross licensing agreement over the summer. The idea of Moto moving in -- and keeping Symbol’s HQ open -- will be a welcomed one for the workforce here.