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Hewlett-Packard races to build webOS ecosystem through licensing strategy

By licensing out its webOS mobile operating system, Hewlett-Packard could be looking to quickly build an ecosystem that can hold its own against Android?s growth. 

HP is reportedly in discussions with several companies to license out its webOS platform. If done right, the move could help the firm attract developers and provide webOS with stronger legs in the mobile space.

?HP may be thinking that if it doesn?t get webOS in gear in terms of its ecosystem fast than it could be in trouble if Android continues on its pace,? said Kevin Burden, practice director of mobile devices at ABI Research, New York.

?There?s a race in building these ecosystems around operating systems,? he said.

?Android is well on the way to taking the lead but iOS has loyal fans and there is the potential for Windows 7 to take off with Nokia.? 

HP did not respond to a request for comment.

Strong ecosystem
The reports this week about HP?s licensing strategy suggest the company is in discussions with Samsung to bring webOS to Samsung?s smartphones.

Such a move could help HP build a strong ecosystem for its operating system, with a variety of hardware products and developers who are interested in creating for it.

?HP believes it will be more successful in getting webOS to this level if it can have a large OEM like Samsung involved,? Mr. Burden said.

Building a strong ecosystem for webOS is essential if HP wants it to have longevity in the marketplace.

?You can be the leader and be nowhere in five years if you don?t look after the operating system and the ecosystem and keep feeding this thing.?

WebOS was one of the big factors in HP?s decision to acquire Palm for $1.2 billion last year.

HP has said it intends to bring the operating system to a wide variety of mobile hardware devices, including tablets, laptops and desktops.

WebOS currently runs on HP?s Palm smartphones, as well as its upcoming TouchPad tablet.

HP?s apparent decision to license webOS could be based on the intrinsic value of mobile operating systems.

?There are not a lot of mobile operating systems out there and it is a very valuable commodity that they hold,? Mr. Burden said.

Room for many
However, if HP were to license webOS there could be challenges.

?The problem if you own an operating system, build hardware around it and then license it to other manufacturers who also build hardware is that you end up competing with licensees,? Mr. Burden said.

Palm went through a similar scenario, with the company licensing its operating system to the likes of Sony and IBM.

Eventually,  the Palm operating system lost favor with developers partially because of the licensing strategy. 

?Palm learned its lessons a long time ago about what the problems are of licensing its operating system and continuing to build hardware,? Mr. Burden said.

The mobile space has expanded significantly since then and it is possible that HP is considering a more strategic way to license webOS.

For example, HP might focus on building smartphones, tablets and printers using webOS and license the operating system to vendors that would build hardware that HP has no intention of building.

While firms such as HP, RIM and Microsoft are all looking to build ecosystems around their operating systems that can compete with Android?s growth and iOS? loyal fan base, there may ultimately be enough room for several winners.

?Mobile devices are very personal and we all have certain wants and need for how we want them to act,? Mr. Burden said.

?Which is why multiple operating systems can exist,? he said.

?There is a good chance there will continue to be multiple operating systems. It has been that way for a long time and will continue to be that way.?

Final Take
Chantal Tode, Assoc. Editor, Mobile Marketer