Motorola (Quote, Chart) has purchased media networking software specialist
Ucentric Systems today, a move that enhances the networker's connected home
offerings and marks its first foray into the software business, a company
spokesman said.
Ucentric provides access to stored digital content -- such as
high-definition video on a digital video recorder, music on a hard drive, or
pictures on a laptop -- from any connected device in the home.
The technology operates with electronic program guides from several vendors,
and service providers can customize the interface with applications for
subscribers.
"We've always been a hardware player, so this will be a change for us," Paul
Alfieri, a Motorola spokesman, told internetnews.com.
The offering will be sold to third-party service providers as well as
integrated into Motorola's set top box line.
The acquisition, terms of which were not disclosed, builds on a strategy articulated
in June 2003, when Motorola formed a new business unit to sell wireless
cable modem gateways, digital set-top boxes and other equipment to
consumers.
Just weeks after that announcement, Ucentric joined the Motorola's developer
program with the goal of making its software compatible with Motorola's
high-definition TV and personal video recorder platform.
More broadly, the connected home initiative fits the company's vision of
seamless mobility -- allowing consumers to access their information from
PCs, digital entertainment systems, and ultimately through mobile phones and
devices, Alfieri said.
Ucentric is privately held and venture-backed by Polaris Venture Partners.
The 5-year-old company's technology has been used by cable operators
including Comcast (Quote, Chart) and Rodgers, as well as hardware
manufacturers Samsung and chip maker Broadcom (Quote, Chart).
By becoming part of Motorola, the company will now have a ready-made
international sales and support team, which could be crucial to bringing its
technology to expanding markets such as China, Alfieri said. The firm's
employees will stay on with Motorola.
Other IT giants are also looking to the living room for growth. Earlier this
year, Intel (Quote, Chart) launched a
new investment fund worth $200 million to invest in companies developing
hardware and software for consumer entertainment, such as sharing digital
music, photos and video on a variety of devices.
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