“SoftBank chairman and CEO Masayoshi Son indicated that the acquisition is motivated by the large business potential for IoT (Internet of Things). However, Son overestimated real benefits from the acquisition and underestimated difficulties in vertical and horizontal integration of industries for IoT application, according to Digitimes Research.”
See Digitimes Research: SoftBank chairman overoptimistic about benefits from acquiring ARMI think Digitimes has this wrong. Digitimes is thinking that buying ARM means making a new business venture with the combined businesses. It’s not. SoftBank is investing in ARM basically. By throwing money at it, Son believes ARM will be able to grow faster than it has already. A rocket may seem to be risky and complex but it certainly gets where it’s going quickly. That’s what this deal is about, getting to a new future of IT more quickly.
From my point of view, this pressure on ARM to grow will accomplish what I’ve been trying to do for years, displace monopolists from the platforms we use for all kinds of IT. ARM has been carefully avoiding going head to head with Intel, for instance. That’s fine if the goal was simply to do things that Intel was not, but if the goal is to grow and to make as much money as fast as possible, intruding into Intel’s space is in order. IoT is important and there’s lots of growth there but ARMed devices have become sufficiently powerful for most servers and desktops, Intel’s bread and butter. I think ARM will find diversification helps growth, revenue, and sustainability just like most other businesses. IoT is a huge part of ARM but so was mobility and so will be segments of Intel’s core business. It’s all good.
A guy who makes nuts and bolts may well start making rods and chains. Why not? It’s just not reasonable to stay away from rods and chains simply because someone else is making those. Competition is good and no one should have a monopoly in the building blocks of our IT.