google has announced it

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    Google has announced it's going to acquire Motorola Mobility for $12.5 billion ($40 per share). The

    Mountain View-based company plans to use Motorola's rich patent portfolio to help its Android platform in

    the numerous legal battles it's currently fighting, while Motorola itself should continue to function as

    before.

    The first thing that should be noted is Motorola Mobility is not the entire Motorola. You might remember

    that the company split in two in January 2010 - Motorola Solution (being the direct successor of Motorola)and Motorola Mobility (a spin-off company handling the mobile devices business).

    So, Google is buying Motorola's mobile division responsible for smartphones and tablets. The reson for

    the move is quite simple - to defend Android in the ongoing patent war.

    A few days ago Google explained that Microsoft, Apple and other corporations are working together to

    acquire important patents before Google so they can get licensing fees of up to $15 from the

    manufacturers for each Android device sold.

    So, now that Google owns Motorola (or it will when all the formalities are over) it is in a much better

    position to offer assistance to its partners in their court struggles. After all, Motorola is one of the

    companies with the largest patent portfolios in business and we are led to believe the whole Android

    community will have access to it once the deal is done.

    Google does not plan a merger and will run Motorola as a completely separate business. Android will

    remain the same - an open platform available for anyone who wants to use it and Motorola will continue

    to be one of the many Android licensees. Let's hope that this will at least lead to speeding up of the

    Android updates for the Motorola's Droid lineup.

    The leaders of all the other major Android manufacturers already expressed their support for the

    acquisition. The CEOs of LG, Sony Ericsson and HTC as well as the president of the Samsung mobile

    division already welcomed Googles commitment to defending Android and its partners.

    Thanks to everyone who sent this in!

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    Tata Motors chairman says crisis in western Europe may dampen demand for passenger cars.

    Tata Motors Chairman Ratan Tata has warned of a challenging year ahead for car makers in Indiaeven as the automotive industry continues to grapple with diminishing demand.

    Looking ahead, I think the coming year will probably pose a considerable challenge. We all know western Europe is goingthrough a relative crisis in terms of currency. All this is expected to dampen the demand for passenger cars, Tata said whileaddressing shareholders at the companys 66th annual general meeting here on Friday.Sales of passenger cars of the company in the domestic market declined 10.7 per cent to 69,529 units during the firstquarter of this financial year, as against 77,858 units a year ago. While commercial vehicles posted 13 per cent growth insales in the first quarter, Tata cautioned any decrease in the governments spending on infrastructure would impact their

    sales.Tata also said the company should use the economic downturn as an opportunity to leverage low-cost manufacturingcapabilities through design and manufacturing.

    With increased presence of several international automotive companies in India, Tata said efforts were being made toprotect its share in the domestic market.

    We need to also fill up the various product gaps that we may have. We are working on joint products with Jaguar and LandRover and with Tata Daewoo.

    Tata Motors is looking to tap the extensive dealer base of JLR globally while exploring synergies with it. JLR currently serves160 markets globally. Tata also assured the shareholders over the companys loss-making joint venture (JV) with Italys Fiat,saying efforts were underway to turn around the operations.

    The JV was created with a certain set of assumptions. The assumption was basically that the JV would be to introduce Fiatproducts that we would market and we would produce products for ourselves, Tata said.

    Those assumptions in terms of volumes did not work out, more so for Fiat than for us because there was a downturn andthey made an assumption on planned demand which did not materialise. Both Fiat and we are relooking at the contractualundertaking. I hope we resolve this, he added.

    He said Tata Motors was looking to set up an vehicle assembly facility, especially for the Nano in Indonesia.

    The company is looking to tap the potential demand base for the ultra compact car in the Southeast Asian market. Inaddition, it will set up an assembly base in Brazil to cater to the Latin American market.

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    Mahindra Satyam to integrate IT management system with Tech Mahindra's platform

    MUMBAI, AUG. 7:

    The erstwhile Satyam Computer Services used to run about 190 different IT systems for internal management,making it easier for Mr B. Ramalinga Raju and his cohorts to cook the company's books, a top company officialsaid.

    In order to prevent a similar fraud at the now rechristened Mahindra Satyam, the company management hasembarked on a process to move to an automated management information system (MIS).

    Since Satyam had close to 190 MISs earlier, in many cases, the data from one system had to be manuallytransposed to another system. Wherever it was manual, there were chances of discrepancies. Even with honestguys there are chances of mistakes since the job involves entry of data, Mr Vineet Nayyar, Chairman ofMahindra Satyam, toldBusiness Line.

    The MIS systems at Mahindra Satyam will now be integrated with the Oracle- PeopleSoft platform being usedat Tech Mahindra. According to Mr Nayyar, this complex' process will take another six months to complete.This will further help the two companies function as a single entity even before they eventually decide to merge.Tech Mahindra and Mahindra Satyam are now looking at a March-April time frame for a potential merger nextyear.

    BUSINESS OPERATIONS

    MIS is a general term for the computer systems in an enterprise that provide information about its businessoperations.

    One of the challenges facing Mr Nayyar and his team when they took over the scam-hit Satyam ComputerServices was the legal notices that were filed against it by the promoters of three companies that Satyam hadacquired in the past.

    While Mahindra Satyam had amicably resolved two of the three acquisition-related disputes that had surfacedafter the sensational disclosures made by former Chairman Mr Ramalinga Raju two years ago, there wasambiguity on the status of Satyam's acquisition of a market research and customer analytics business unit from

    Caterpillar. (The company was acquired by Satyam for $60 million.)

    However, Mr Nayyar has now clarified that Mahindra Satyam had settled the row with Caterpillar by givingaway the software product that was acquired as part of the deal.

    Caterpillar was an acquisition of a technology which made no sense. The settlement was that you take yourproduct back and keep whatever money has been paid already, said Mr Nayyar.

    Keywords:Vineet Nayyar, Chairman of Mahindra Satyam

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