Analysis: Partners Will Gain From Motorola Solutions Debut

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January 04 2011 @ 16:23

Shares of Motorola Solutions Inc. closed higher after the new companys first day of trading on Wall Street, activity that bodes well for its partners.

On Tuesday, the long-awaited separation of Motorola Inc. into two companies Motorola Solutions and Motorola Mobility finally took place. And for resellers, as well as other industry players, the move was a long time coming. The time has come, though, for partners to kick their marketing into high gear as Motorola Solutions starts its new life.

Now, sure, the equipment-oriented half of the old Motorola may lack some sex appeal compared to its trendier Mobility counterpart its a little like a pager vs. a smartphone, to use a comparison that surely wont evoke any USS Enterprise-like complaints. But when you think about which of the new Motorolas will withstand fewer purchasing whims, its the Solutions business (never mind that Motorola Mobility doesnt have a full-fledged channel program). And thats where resellers want to be positioned.

Thats because Motorola Solutions has clout and traction in the never-disappearing world of government, public safety and enterprise communications. On top of that, Motorola Solutions boasts a hefty $5 billion coffer of cash thatll go toward items including R&D and the channel. Motorola Mobility isnt hurting either but its success depends on mercurial market factors, such as the ability to compete against the Apple iPhone, and to innovate as the cable set-top box market shifts to IPTVs. Motorola Solutions has a firm foundation in an industry that has seen a lot of technological growth, but little change in customer buying patterns. That is, unless the economy really hits the skids.

At any rate, expect to see some new releases soon from Motorola Solutions. Mark Kroh, the companys vice president of global channels, couldnt divulge much in a recent interview, but look for the latest version of the ES400 Enterprise Digital Assistant a heavy-duty PDA that runs on Windows Mobile to be certified on more carrier networks worldwide. And keep an eye out for additions to the wireless LAN lineup.

We are very well positioned for the future, said Greg Brown, president and CEO of Motorola Solutions, in a prepared statement on Tuesday. Motorola Solutions has an outstanding platform to build from and I believe our opportunities for growth will benefit customers, shareholders and employees.

To that point, Motorola Solutions closed at $39.77 on Tuesday, up from an opening price of $37.30.