[UnderseaLcpl]

I think what Microsoft is really after is Nokia's historical expertise in manufacturing outdoor-wear like rubber galoshes and fur goods, which their customers will need whilst trying to endure software freezes and wade through their excrement-laden operating systems.

Ok, on to srs bizness.

I tend to agree with Feur Frei on this subject, although for different reasons. I see Nokia suffering from two things:
1) The companies have different management and operating styles, but Microsoft is dominant. Nokia got itself into this position because it saw the opportunity to jump on the bandwagon with a nigh-universal system, thereby capturing market share in what most see as the inevitable integration of PCs with mobile tech. They're counting on Microsoft's dominance to secure their place in a developing market.

Unfortunately, that works both ways. Microsoft is counting on Nokia's preeminence as a way to blitzkrieg the mobile data market, and they don't have a history of being gentle with such things. Nokia knows this, which is why they are admitting that jobs will be lost. They know that Microsoft will replace their employees with Microsoft employees where possible, and not the other way around, but they're counting on the increased market share to secure the future of their company against troubling and popular challengers. In short, Nokia and Microsoft are both counting on Microsoft's "brute force" approach.

I'm not entirely sure this is a wise decision on the part of either company in such a nascent market. Customers interested in instant data from anywhere at any time are by nature not a particularly patient or understanding bunch. If Microsoft screws up their platform one or two times, the initiative will be lost.

2) Nokia is taking a considerable risk with their core business by being so exclusive. That company had to invest a lot of effort in becoming what it is today, and a few typical Microsoft failures could ruin that effort within a few months. Even if they break away from the deal when/if it becomes apparent that the decision was wrong, they'll have to endure a period of stigmatization, which can be very harmful to a company with such a narrow profit margin and such a heavy investment in smartphones.
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Time will tell, but I'm betting that this move hurts Nokia for the forseeable future. I'm betting that the first platforms available from MS end up being a disappointment, and I'm betting that Nokia will suffer as a result.