Google should buy Palm

Palm's downfall

Last months, the rumor mill was running 24/7 about an eventual buy out of Palm.  As to date, those rumors were all proved to be false. 

As you probably know, Palm is experiencing difficulties and a buy out is a quasi-certitude.  Palm's new smartphone models don't sell well and they can't compete against the competition : mainly Android and the iPhone.

 
Palm is most likely doomed.  It's a shame because Palm is an innovative company.  After all, they were ahead of the netbook wave with the Foleo.  Too bad that Palm have abandoned the Foloe and let Asus take the lead of the netbook market.

Sooner or later a company will pick-up Palm's carcass and its impressive patent portfolio at the same time. It's just a matter of who and when.

That's only a brief overview of latest Palm ordeals and bad decisions.  Palm is also the proof that no matter how polished is your product or technology, if nobody wants to buy it, you're out of business.
Customers don't buy a piece of engineering : they buy a product and sometimes a life style also (like Apple's or BMW's products).  Do you remember the Beta vs VHS battle or, for the younger readers, Blu-ray vs HD-DVD?  Same game, different players.

"Xyz Inc. should buy Palm!"

You probably read such title previously : "XYZ Inc. should buy Palm" during the last year.  I did too, a lot.  Each time more amused than the previous time because financial analysts don't have a clue... but I do!

The companies that were previously suspected by analysts for a potential takeover were : Nokia, RIM, Dell, Microsoft, Motorola, Apple and even Amazon!  Why not Martha Stewart then?

Seriously.  The only company I see that could have an interest to buy and actually do something with Palm (not only suing other companies over Palm patents) is : Google.

I can imagine your reaction reading this: "Yeah, right!" or something less polite... 

Read on, I will explain why it make sense to me.

Why Google could possibly want to buy Palm?

First, Google have the money to buy Palm and its impressive patent portfolio.  Only that could worth it for a company like Google.
I can easily imagine Google using such IP's to scare Microsoft and Apple lawyers away.

My second argument is that Palm Pre hardware is similar to what Android is already running on.  So, theoretically speaking, it is possible to replace WebOS on the Pre by Android.
I've heard of a port of Android for the Palm Pre in progress some time ago.  With full access to the Pre hardware, Google can install Android using conventional means (read: no hacking) in no time.

You are probably wondering: "Why will Google want to do that?  Android runs on so much different hardware already!"
True, but Google lack something that RIM and Apple have: control on the platform.

By it's Open Source nature, nothing prevent a manufacturer to change heavily Android (fork it) and screw so much their implementation that it gives Google and Android a bad name...  Android is Google's trademark after all, not Motorola's or HTC's.  If Android is screwed, Google is screwed.

Having access to Palm hardware means for Google that, with little effort, they can produce a reference device.  Google could also sold it using their own brand name instead of relying on other manufacturers (like HTC for the Nexus One).
It reminds me of how IBM opened up it's personal computer (IBM-PC) platform to other manufacturer and ultimately dominated the market by doing so.  If it worked for IBM, it could work for Google too.  Don't you think?

I see another benificial effect of a Palm buy out for Android : whenever Apple will want to threaten Android in the future, they will not have to use the side door by suing HTC.  They will be able to knock at Google's door directly and leave alone phone manufacturers that are using Android OS.  Google has the means to defend itself and to defend Android.

Now, what about WebOS?
Maybe Google could reuse some part of it to improve Android.  But I don't see any interest for Google to keep working on WebOS in parallel to Android.  So, if my prediction comes true, RIP WebOS...

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