Google’s strategic move into selling own branded Mobile phones is another step in the merging of “Software plus Hardware” that Apple, Microsoft, Amazon and recently Facebook have realized at the making of the “Internet of Things” Era. This is the critical issue of not just providing the software and operating system but increasing the value in the devices that become the Interface to the Customer: the smart phone, the smart tablet/laptop of Microsoft Surface, the Smart Speaker of Amazon Echo and Alexa, and the Facebook Oculus Rift and Microsoft Hololens that are the new foundations of Natural Language speech recognition services and the VR Virtual Reality and AR Augmented Reality breaking now and into 2017 and onward.
Google’s long-term market is changing , the advertising revenue from search engines while still strong is now seeing new ways to search via speech or Virtual image recognition and virtual interaction
Google has been late to realizing perhaps the shift to software + hardware is where the Internet of Things may be shaping the market with the Connected Home, Connected Car and Connected Work through these devices. It’s all about “market marking” beyond just the big cloud data centers and big data analytics to how to build out the edge of the cloud network with all these potentially billions of connected sensors and devices. If the Mobile phone is becoming the “remote control to this world” and platforms the “fabric of social networks and connected experiences” then Google like others is rushing to get into this space with stronger software and hardware offerings
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