Let's start with the facts...I'm a huge Palm fan. I have no shame in admitting it. I even liked Palm when they were quite frankly, crappy. So, the last few years have been a roller coaster ride for me. I hated my Palm Treo 700p, but refused to go the way of a Blackberry when everyone else was. I held out for the Pre, when everyone else switched to iPhones. Then, I endured the past year, watching what is quite frankly an amazing phone and operating system get spanked by its competitors. And now, I have to wait to see what happens now that HP has announced that they will purchase Palm. This could get interesting...How should I react to this news? How will the rest of America react? Well, the rest of America has mostly shrugged their shoulders because they have already written Palm off. I however...am elated. You see, Palm now has a big brother that has money. HP has stated that Palm will operate as a "business unit" within HP. Palm can now operate as it's own entity, churning out innovation without having to worry (too much) about how its going to survive. Yes, Palm will be under a larger umbrella, but don't expect that Palm will have to answer to HP as an employee answers to their boss. No, Palm will continue to work (mostly) autonomously, and HP will reap the benefits.
But, is HP a good partner for Palm? Many were hoping that HTC would become the company to purchase Palm. And for good reason...HTC has slick mobile devices that would make great vessels for the WebOS operating system. But, HTC is more content being a device manufacturer that is willing to support multiple OS's, than going into the one-trick-pony game by putting all of its eggs in one basket. I can respect that. HP however, is looking at this venture slightly differently. They could care less about the Pre or the Pixi, they just want WebOS. They already manufacture phones and are in bed deeply with Microsoft as far as running Windows Phone 7 in upcoming months. Yes, Palm will continue to pump out phones running WebOS, but expect WebOS to start showing up on other manufacturers phones, as well. HTC will most likely be one of the first to jump at the opportunity to introduce an non-Palm Web OS phone. HP also is looking to expand WebOS to other devices. Possibly WebOS powered printers, scanners or calculators perhaps? Or even a web tablet to rival the iPad? Let's not forget the HP Slate that was due out, but has now been killed because HP doesn't think Win 7 is the right platform for it. And wait...HP is a pioneer in touchscreen laptops and personal computers with their line of Touchsmart PC's, which run a virtual environment on top of the Windows Operating System. An environment that could stand to be livened up with WebOS flair.
But, there is one more thing that HP stands to gain from this entire venture. By purchasing Palm, HP will gain ownership to a boatload of patents that Palm owns. Including the patent for the "integrated handheld computing and telephony system and services" Ummm...that translates into "smartphone." As well as adjusting the brightness of a display based on ambient light, or pulling up contacts by typing initials. And that's just the beginning. Essentially, Palm has sat on a ton of patents that if they had wanted to, they could have tried to sue the heck out of a bunch of companies. But, for a failing company, it doesn't always make sense to spend your investor's money on what could be a frivolous lawsuit. Especially after the months of posturing they did with Apple over multi-touch infringements and iTunes compatibility. But for HP...this could be well worth the fight. Imagine filing lawsuits against every manufacturer of a smartphone, and winning. HP could literally recoup the $1.2 billion that they are going to spend for Palm through the court system.
So, is HP buying Palm a good thing or not? For me, a Palm fan...yes. For Palm, a struggling company...Yes. And for HP, a savvy company with little to lose, YES.
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