Google All Set To Divide The BYOD Market

  • Google has acquired BOYD service provider Divide.
  • The BYOD market is on a steep growth trajectory with some reports pointing at a 17% - 18% CAGR up to 2020.
  • The Divide team will work to make Android more enterprise-friendly by integrating BYOD services into stock Android.

Google acquires divide

Google (NASDAQ:GOOG) is known to be on the constant lookout for innovative products with huge market potential like Android and Nest Labs. It now has turned its eyes to a sector which is poised for extra ordinary growth over the coming years, the BYOD (bring your own device) market. The BYOD market, valued at $65 billion in 2012, seems to be on a steep growth trajectory headed to a market size greater than $250 billion by 2020. With Blackberry effectively exiting the enterprise mobility market, the shift is happening from enterprise owned device to BYOD with employees preferring to use their personal devices for official use as well. The BYOD ecosystem works with standard operating systems like Android and Apple iOS making them secure and enterprise ready.

Google’s acquisition of Divide, a four year old BYOD service provider, is therefore not without reason. This is yet another acquisition of a company previously backed by Google’s venture arm, Google ventures, following the acquisitions of BufferBox and Nest Labs. Closely following the recent news of Twitch acquisition, Google is clearly on the lookout for innovative products/services which could be nurtured to drive growth and Value for the Mountain View based company.

Divide is a New York based company offering BYOD solutions for corporates. The solution includes basic features like work calendar, work contacts, secure file storage, tasks, private browser which are free and also paid features like full remote management, fleet management, IT policy enforcement, enterprise app deployment, admin console, branding and VPN proxy.

A positive for the Divide team could be the offering of BYOD service backed by a name as big as Google, which could be seen as a reputed and good alternative to Blackberry. While the details regarding the value of the deal are still unknown, the divide team is reportedly going to work on making the android ecosystem more enterprise friendly.

However, all is not as rosy as it seems with a clear and powerful player already in this space in the form Samsung’s  KNOX platform, which debuted with its BYOD services last year. Though only a year old and currently into its version 2, KNOX platform has come in for a high praise for its highly secure services which puts the KNOX platform on the same level of security as the ultra-secure Blackberry. As if the competition from Samsung’s KNOX will not be enough, Google will also be faced by competition from Apple’s (NASDAQ:AAPL) enterprise friendly iOS7. Apple, normally known to be excessively consumer focused seems to have realized the potential of the BYOD market.

While unsettling Samsung’s KNOX will be hugely tough, the addition of BYOD services to Android will enable other android manufacturers to offer BYOD services with the stock android platform. In short, the enterprise attractiveness quotient of android devices will move higher, irrespective of the manufacturer it comes from. On the other hand, while Samsung’s KNOX will be far from dead, Samsung’s revenue estimates from its BYOD services might be jolted significantly following the latest acquisition by Google.

The biggest benefit for Google could be the integration of androids enterprise abilities with its existing set of cloud services and Android apps, creating a seamless and enterprise-friendly solution for its customers.

We think the latest acquisition by one of Silicon Valley’s most innovative tech giants could well change the way enterprises look at android and could turn out be an USP of android, as far as enterprises are concerned, in the days to come.

We rate Google among our top stock picks from the internet sector given its highly profitable and cash generating search operations, which can continue to finance Google’s foray into newer services and products.  The highly profitability of its operations is another strong positive for the Larry Page led Google. We currently rate the stock 3.5/5 reflecting our positive outlook on Google.

To see Google’s latest stock price movement, click here (NASDAQ:GOOG)

Virendra Singh Chauhan Virendra Singh Chauhan   on Amigobulls :

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