Technology In 2014, Part 1: Collaborations Rule The Day

Technology companies seem to have woken up to the fact that collaboration is an effective way to get more competitive. Two factors have driven this change in tactics. The first was the desire to avoid litigation that is basically a waste of time, money and effort. The second was the need to tap growth opportunities related to cloud computing, which has greatly increased the need for inter-operability. Here is a brief recap of some of the big deals this year:

Google (GOOGL - Analyst Report) was one of the most enthusiastic collaborators as it attempted to minimize litigation and diversify its revenue source. 

Google, Samsung and Cisco

The 10-year agreement between Google and Samsung, signed in Jan 2014, covered a large number (though not all) current and future patents of the companies and is intended to minimize litigation for both. While it is in Google’s interest to have viable competition to Samsung, this is the strongest competitor to Apple devices that do not use Android.

The following month, Cisco (CSCO - Analyst Report) entered into similar agreements with Samsung and Google, running up to 10 years and giving the three companies the right to cross-license their technologies even if any of it was subsequently sold off to companies that were not part of the contract.

Google and LG

In November, Google entered into a patent cross-licensing deal with LG for existing and new patents over the next 10 years. Google and Samsung have not been the best of allies in recent times and the search company has been building relationships with other hardware makers (it chose HTC for its latest Nexus tablets).

Google and Sprint

In July, Google and Sprint (S) entered into a deal according to which Sprint is pushing Google Apps for Business to its own customers and serving as a single point of contact for customers needing the resolution of problems related to their network, devices or apps. Sprint is selling the Google suite for $5 per user per month (no markup) with those also wanting unlimited storage having to pay $10. Sprint will provide several additional services to these customers, some of which will be free.

Google and Yandex in RTB Deal

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Apple (AAPL - Analyst Report) cut a few significant deals this year, the first with IBM to expand at the enterprise and the second with China’s Union Pay to make Apple Pay more effective.

Apple and IBM

In July, Apple joined with IBM (IBM - Analyst Report) in what the two described as a landmark deal. Accordingly, IBM is tailoring its software expertise in cloud services, security and big data analytics for Apple devices that it pushes to its enterprise customers.

The first products intended to further this alliance were announced this December, with IBM unveiling ten new apps across different verticals including travel, banking, insurance, government, retail and communications. Dubbed IBM Mobilefirst for iOS, these apps could give both Apple and IBM a strong footing in the increasingly mobile enterprise market and is potentially, a headache for Microsoft and Google.

Apple and Union Pay

UnionPay, the Chinese alternative to Mastercard (MA) and Visa (V) is a payment processing platform that is particularly dominant in China, but also growing worldwide. So its decision to join Apple Pay in November should be beneficial for both the parties concerned. For Apple, it will facilitate App Store sales in China because of a greatly simplified payment experience (buyers previously had to set up a prepaid banking account and obtain a related password for App Store transactions). For UnionPay, there is significant growth opportunity from App Store sales in China, which have been growing at a double-digit clip in the last few quarters. 

Microsoft (MSFT - Analyst Report) also signed a few deals, furthering its plans to metamorphose into a cloud-first, mobile-first company.

Microsoft & Google Make Strange Bedfellows

Microsoft And Salesforce Join Hands

Intel and Rockchip

Intel’s (INTC - Analyst Report) deal with Chinese company Rockchip was intended to facilitate its penetration of the entry-level Android-based mobile devices market in China. In addition to the joint development of an SoC under the Intel brand that will be manufactured by Taiwan Semiconductor, the agreement seeks to leverage Rockchip’s marketing relationships in China. Rockchip remains an ARM licensee, but Intel can be the ultimate winner if it can take some share before moving production in-house. TSM will be using a 28nm process, which Intel can bring down to 14nm.

Pandora and Ford

Pandora (P - Snapshot Report) has gone a step forward in its international expansion with the announcement of a partnership with Ford (F - Analyst Report) Australia. Pandora has around 2 million listeners in the country and estimates that 60% of Australians listen to radio in their cars each week, with 35% of all music-listening happens inside cars. Other automakers it has partnered with in Australia include Holden and Mazda.

>> Continue to Part 2: M&As

>> Continue to Part 3: IPOs Galore

>> Continue to Part 4: Is China Calling The Shots?

>> Continue to Part 5: The Courtroom Drama

>> Continue to Part 6: The Final Scorecard

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