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November 13, 2006

Why is Motorola Buying Good Technology?

posted by MR WAVETHEORY at 11/13/2006 02:48:00 AM
What is Motorola Inc. (NYSE MOT) doing? Motorola is buying Good Technology? (press release)
"The Q has been somewhat disappointing and they're looking for ways to reinvigorate that product line,'' said Albert Lin, an analyst for American Technology Research. "The next versions will be much more feature-rich.''
I still don't get it. With over $200 million in funding, Good was funded by Kleiner Perkins Caufied and Byers.

The product was by most measures subpar - and that's from the sales and marketing guy at Good Technology!
The Good and BlackBerry services are closely comparable when the BlackBerry service is delivered to a BlackBerry handheld, and although RIM also offers BlackBerry software to run on a range of other devices, Good claims that it lacks the full functionality of the BlackBerry handheld. "It is not an enterprise class offering. It does not have the same set of functionality as the BlackBerry handheld. It is a really dumbed-down version. It does not do over the air management and there is no contact synchronisation," Terry Austin, Good Technology's president, worldwide sales and marketing.
It's just not that great. It's Good they sold!

Update: Thank you reader K. for pointing out the misquote above. In my opinion, the spirit of the quote above actually captures the issue with Good more than the problem with BlackBerry. First, there is a big difference in business model between RIMM and Good. Good's monetization per device substantially lags BlackBerry's. It's a business model issue because they are selling software rather than a communications service. I would also argue there's an integration issue between the Good software and the cellphone hardware they piggyback on which can never really be as "good" until Good develops something proprietary for the hardware. Perhaps that's what they are trying to do with this deal with Motorola.

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1 Comments:

Anonymous Kitt said...

Your quote is of Terry Austin obviously talking about Blackberry Connect (which is Blackberry's offering for other devices). You seem to assume he is talking about the Good product.

I think you will find you are mistaken.

3:41 AM  

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