With Google jumping headfirst into the mobile phone industry, other big IT companies are — wisely — following suit. CNet news is reporting that Microsoft has purchased Danger, the Palo Alto-based manufacturer of the T-Mobile Sidekick smart phone. In a statement released recently, Microsoft confirmed that Danger had been acquired for an undisclosed amount.
Microsoft entertainment president Robbie Bach called Danger “a perfect complement to our existing software and services.” Bach did not reveal Microsoft’s plans for rebranding the companny’s smartphones, or how they would be implemented with existing Microsoft software and hardware solutions.
Danger has made quite a name for themselves in the past few years; the company’s Sidekick smart phone brings Web browsing, instant messaging and e-mail to a consumer oriented cell phone that is geared more toward the youth market than its closest rival, Blackberry, who focuses almost exclusively on business users.
But in some ways Microsoft’s acquisition of the Sidekick is an unusual move. The company uses its own proprietary operating system, instead of the more ubiquitous Windows Mobile. Additionally, the company (Danger) has a very different M.O. from the conservative Microsoft camp. Analysts expect that Microsoft will “reengineer” the sidekick to use some version of its Microsoft Mobile operating system, though company representatives have not confirmed this fact to date.
Microsoft did announce that they are in negotiations with both Motorola and Sharp to manufacture phones for Danger. Both Motorola and Sharp have experience in producing phones using the Windows Mobile operating system.
Microsoft is about to receive substantial competition to Windows mobile, however, as Google is officially introducing its Android mobile operating system recently at the Mobile World Congress in Barcelona, Spain. Google has already garnered the support of many of the biggest players in the mobile industry for its new operating system, which is being touted by some as “the Windows killer.”
After Microsoft’s failed attempt to acquire Yahoo.com last week, it is clear that a major power play is transpiring among the biggest IT companies. Microsoft’s acquisition of Danger is another sign of the company’s intention to grab a sizable chunk of the mobile Internet pie.
When all is said and done, the power play taking place is principally between Microsoft and Google. Only these two giants have the funding and organization to dominate the coming mobile Internet boom. But even with the acquisition of Danger, Microsoft is still trailing behind Google in the new mobile Internet goldrush — at least for the time being.
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