Do big tech deals mean big changes for consumers?
This week, Microsoft announced that it will acquire Nokia’s wireless phone business in an attempt to regain strength in the mobile phone market. In addition, Verizon announced it would buy out its partner Vodafone for its mobile business, a blockbuster deal that has been in the works for years. Tech expert Karl Volkman of Chicago’s SRV Network, Inc., weighs in on the takeovers and what they mean for the larger mobile market.
“Everyone wants a bigger bite of the mobile phone industry, and right now Apple and Google are dominating the market,” says Volkman. “By taking big steps to acquire wireless businesses like Vodafone and Nokia, Verizon and Microsoft are spending billions to capture a larger part of the market share.”
Some investors are concerned that Microsoft’s acquisition of Nokia is just another disappointing move, despite current CEO Steve Ballmer’s promises of trailblazing new consumer products. The takeover was priced at $7.2 billion, and could potentially lead Microsoft into an era of success in the mobile market, but the future is unclear. Verizon’s deal is record-breaking, as the company agreed to acquire Vodafone for $130 billion. These larger than life deals set up big expectations for investors and consumers alike.
“The takeovers have the potential to bring competition to another level in the mobile phone market,” continues Volkman. “While iPhones and Android devices have been dominating the market, there’s room for additional players if Microsoft and Verizon can get in front of consumer demand and find better competitive positioning among the current leaders.”
Karl Volkman, the Chief Technology Officer of SRV Network, Inc. in Chicago, Illinois, is an IT Professional with over 30 years of experience. Prior to his position at SRV Network, Karl was the Director of Technology for the New Lenox School District 122 in Illinois, the Chief Information Officer of the Habitat Company in Chicago, and the Manager of Networks & Communications for John Nuveen and Company. Karl’s certifications include HP, Microsoft, Cisco, Adtran, Objectworld, and Cymphonix. His capabilities include IT Management, Planning and Technician, Telecomm Technician, Programmer, DBA, and Technology Instruction.