Mobile Industry on the Move April 19

— April 19, 2014

Another big acquisition, along with investments in emerging technology and earnings reports—here’s the mobile happenings from last week.

ZEBRA TECHNOLOGIES
Zebra Technologies Corporation will acquire Motorola Solution’s enterprise business for $3.45 billion in an all-cash transaction. The transaction is expected to be completed by the end of 2014 and then approximately 4,500 employees are expected to join Zebra.

In a discussion with CNBC, Zebra CEO Anders Gustafsson talked about the strategic fit of the two companies, noting that they have been serving the same customers for years and both have similar channel partners.

The official comment from Motorola is, "Our Enterprise business is an ideal fit for Zebra," according Greg Brown, Motorola Solutions chairman and CEO. "This transaction will enable us to further sharpen our strategic focus on providing mission-critical solutions for our government and public safety customers."  Expanded coverage here…

SAMSUNG
Samsung Electronics America, Inc. has announced Rajiv Mehta as the Senior Vice President of its Customer Service Division. Since joining the company in 2011, Mehta has been responsible for all customer operations in the United States including its call center, field and depot operations and warranty administration. Mehta also oversees the company’s Quality Assurance Lab.

"Rajiv’s expertise and knowledge have been invaluable assets to Samsung’s customer service efforts in the United States," said Tim Baxter, President of Samsung Electronics America, Inc. “Samsung is committed to delivering world class customer service, and we look forward to his continued contributions to the organization."

During his time with Samsung, Mehta has been committed to developing 21st century solutions for customer service that not only offer traditional, post-purchase support, but that also help consumers make purchasing decisions. In addition to leading a highly-trained call center operation, Mehta has played an integral role in implementing online resources and tools that offer various channels for consumers to learn about products and their features, troubleshoot issues and receive live support.

Prior to joining Samsung, Mehta led sales and business development for Sears Home Services. Before that, Mehta specialized in supply chain management, sales and service in various parts of the world including the United States, Asia, Europe, the Middle East and Africa for Motorola Mobility.

BLACKBERRY
Looking to the future of healthcare, BlackBerry invested in NantHealth, intending to collaborate on the development of HIPAA and other government privacy certified, integrated clinical systems that transform the delivery of medical care. 

NantHealth is a cloud-based medical IT provider transforming the delivery of healthcare for payers, providers and patients through real-time connectivity, high performance computing and 21st century decision support.

CEO and Executive Chair, John Chen, said, "NantHealth is a proven innovator in developing leading platforms that allow medical professionals to share information and deliver care efficiently.  BlackBerry’s capabilities align closely with NantHealth’s and this investment represents the type of forward-looking opportunities that are vital to our future."

Founded by medical entrepreneur Dr. Patrick Soon-Shiong, NantHealth works to transform clinical delivery with actionable clinical intelligence at the moment of decision, enabling clinical discovery through real-time machine learning systems. The company’s technology empowers physicians, patients, payers and researchers to transcend the traditional barriers of today’s healthcare system. The NantHealth platform is installed at approximately 250 hospitals, and connects more than 16,000 medical devices collecting more than 3 billion vital signs annually.

"BlackBerry’s expertise is incredibly valuable to NantHealth as we expand our platform and make it available for wider deployment through a secure mobile device,” said Soon-Shiong, NantHealth’s founder and a pioneer of pharmaceutical treatments for both diabetes and cancer. “The future of the healthcare industry requires the ability to share information securely and quickly, whether device-to-device or doctor-to-doctor anywhere and at any time. The potential to integrate BlackBerry's secure mobile communications, along with the company’s QNX embedded technology, will put the power of a supercomputer in the palm of the caregiver's hand. Providing actionable information at the time of need will significantly improve the efficiency of healthcare and, more importantly, the efficacy of care for the patient."

Details of the intended collaboration are being developed, but Chen and Soon-Shiong said they see significant opportunities because:

  • QNX is established as a real-time embedded operating system for mission-critical medical diagnostic and monitoring devices in hospitals and homecare environments
  • BBM Protected is an upcoming, secure communication platform that could connect healthcare providers, field service workers, emergency personnel, patients and family members
  •  NantHealth's Clinical Operating System (cOS ) platform is the first operating system of its kind in healthcare.  The platform integrates the knowledge base with the delivery system and the payment system, enabling 21st century coordinated care at a lower cost
  •  NantHealth and BlackBerry can combine secure cloud-based and supercomputing services to provide data integration, decision support and analytics
     
AT&T
AT&T and Volvo Cars entered into a new multi-year agreement to enable future Volvo vehicles in the U.S. and Canada with high speed wireless connectivity; 2015 model year cars will be available with AT&T on-board this summer.

Volvo’s U.S. 2015 model year connected car solution will be powered with Sensus Connect, an embedded infotainment service.

AT&T will power Volvo On Call, a service allowing remote access to car functions and an emergency crash notification service.   Volvo’s solution incorporates AT&T’s Single SIM platform to provide coverage in the U.S. and Canada
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EARNINGS ROUNDUP
  • Intel reported Q1 revenue of $12.8 Billion; operating income of $2.5 Billion—Up 1% year-over-year.
  • Google's revenue was $15.4 billion, up 19% year on year,” said Larry Page, CEO of Google.  "We got lots of product improvements done, especially on mobile. I'm also excited with progress on our emerging businesses."
  • Yahoo CEO Marissa Mayer. "And, with mobile pivotal to our future growth, we're delighted to now see more than 430 million monthly mobile users accessing Yahoo's new products." GAAP revenue was $1,133 million for the first quarter of 2014, a 1 percent decrease from the first quarter of 2013. Revenue excluding traffic acquisition costs ("revenue ex-TAC") was $1,087 million for the first quarter of 2014, a 1 percent increase compared to the first quarter of 2013.
  • IBM’s total revenues for the first quarter of 2014 were $22.5 billion, down 4% (down 2%, adjusting for currency; down 1%, excluding the customer care outsourcing business) from the first quarter of 2013. “In the first quarter, we continued to take actions to transform parts of the business and to shift aggressively to our strategic growth areas including cloud, big data analytics, social, mobile and security,” said Ginni Rometty, IBM chairman, president and chief executive officer.
  • SAPs annual cloud revenue run rate is now approaching €1.1 billion or $1.5 billion. Non-IFRS calculated cloud billings increased 36% year-over-year at constant currencies “We are well on our way to becoming THE cloud company powered by SAP HANA with fast growth in the cloud and broad adoption of HANA as the real-time business platform,” said Bill McDermott and Jim Hagemann Snabe, Co-CEOs of SAP.
 

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