Google-Motorola Puts Microsoft on Call

(TheStreet) -- Google's GOOG $12.5 billion all-cash deal for Motorola MMI drew new battle lines Monday as the leading software shop jumped into phone making. Beyond the obvious boost in the patent arms race, Google's combination with Motorola creates a crucial hardware/software business model that the two companies had avoided until now. In general terms, the smartphone industry is divided into players like Apple AAPL and Research In Motion RIMM, which develop all aspects of their products. The second camp is comprised of Samsung, HTC, LG, ZTE and others that build hardware and license outside software. Nokia NOK joined the second camp last year when it agreed to make Microsoft MSFT Windows 7 phones. Continue reading the article.