Nokia and Microsoft form partnership

[Gerald]

Nokia has joined forces with Microsoft in an attempt to regain ground lost to the iPhone and Android-based devices.

The deal will see Nokia use the Windows phone operating system for its smartphones, the company said.

It means that Nokia's existing operating systems will be sidelined.

Windows first: Speaking about the new partnership with Microsoft, Mr Elop said that "the game has changed from a battle of devices to a war of ecosystems".

"An ecosystem with Microsoft and Nokia has unrivalled scale around the globe," he said.

Microsoft's chief executive Steve Ballmer was also present at the launch, underlining the importance of the deal to the computing giant.

http://www.bbc.co.uk/news/business-12427680


Note: 11 February 2011 Last updated at 09:41 GMT

[Feuer Frei!]

It's a win-win situation for Microsoft, the future of the PC is mobile, no doubt about it.
Not so good for Nokia in my opinion,
Here's why:
Nokia has for a decade said: the future of mobile phone handsets would go like the PC industry, to software and services.
They bought full ownership of Symbian, the world's most used smartphone OS platform - and had already a near-completed replacement OS for Symbian, called MeeGo (developed with Intel). Now they abandon all that, and take onboard a brand new OS developed by Microsoft that has a miniscule market share, miniscule development community etc.
But they will continue to support Symbian for a couple of years, and they will still support MeeGo as an open source OS and wil release at least one MeeGo device this year.
Nokia will support THREE operating systems? Nokia's Symbian developers will feel betrayed, won't they?
Cost and confusion right there i'd say.
And a partnership with Microsoft is dangerous on a few levels, if one can remember when Microsoft had entered the Smartfones business, in particular dealings with HTC and Motorola, which weren't very good.
Time will tell.

[Gerald]

Originally Posted by Feuer Frei!

It's a win-win situation for Microsoft, the future of the PC is mobile, no doubt about it.
Not so good for Nokia in my opinion,
Here's why:
Nokia has for a decade said: the future of mobile phone handsets would go like the PC industry, to software and services.
They bought full ownership of Symbian, the world's most used smartphone OS platform - and had already a near-completed replacement OS for Symbian, called MeeGo (developed with Intel). Now they abandon all that, and take onboard a brand new OS developed by Microsoft that has a miniscule market share, miniscule development community etc.
But they will continue to support Symbian for a couple of years, and they will still support MeeGo as an open source OS and wil release at least one MeeGo device this year.
Nokia will support THREE operating systems? Nokia's Symbian developers will feel betrayed, won't they?
Cost and confusion right there i'd say.
And a partnership with Microsoft is dangerous on a few levels, if one can remember when Microsoft had entered the Smartfones business, in particular dealings with HTC and Motorola, which weren't very good.
Time will tell.

True! Microsoft is clearly the biggest winners at the moment.

[Jimbuna]

[papa_smurf]

Originally Posted by Feuer Frei!

It's a win-win situation for Microsoft, the future of the PC is mobile, no doubt about it.
Not so good for Nokia in my opinion,
Here's why:
Nokia has for a decade said: the future of mobile phone handsets would go like the PC industry, to software and services.
They bought full ownership of Symbian, the world's most used smartphone OS platform - and had already a near-completed replacement OS for Symbian, called MeeGo (developed with Intel). Now they abandon all that, and take onboard a brand new OS developed by Microsoft that has a miniscule market share, miniscule development community etc.
But they will continue to support Symbian for a couple of years, and they will still support MeeGo as an open source OS and wil release at least one MeeGo device this year.
Nokia will support THREE operating systems? Nokia's Symbian developers will feel betrayed, won't they?
Cost and confusion right there i'd say.
And a partnership with Microsoft is dangerous on a few levels, if one can remember when Microsoft had entered the Smartfones business, in particular dealings with HTC and Motorola, which weren't very good.
Time will tell.

Even with this new partnership, I doubt Apple and El Jobs will be worried by this. Nokia were caught napping by Apple with the iPhone and Google with Android.

[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.
---------------------------------------------------------------

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.

[vienna]

Overlooked in all the discussions about Apple is the manner in which Apple markets their products. The marketing is not so much as "bait and switch" as "bait and bait". Their most recent porducts have been released lacking certain features, e.g., a camera on the iPad. The idea seems to be to release the product, hype it endlessly as a "must have" item, sell as many as they can, then re-release the product a "newer & enhanced" version and repeat the hype. The iPad could have been released with a built-in camera and other features, but wasn't, for no apparent reason. It is mindful of the business practices of IBM in it's mainframe glory days. A former associate of mine who worked for IBM told me that IBM would create a new improved model of an existing mainframe/opertating system and basically shelve it until its competition caught up to them and then release the "new" version to stifle the competion. Apple seems to operate along the same model. This is one of the main reasons why I do not rush right out and buy the latest technology as it is released; eventually there will be a better, more featured and usually cheaper product in the near future, sometimes from a competing brand. I will pay for good technology but not hype and questionable marketing.

[XabbaRus]

That's the problem. You have Apple on one hand and Google on the other.

Neither of them i trust. What i don't like about Apple is the Jobs and his sanctimonious pronouncements and gloating.

[PeriscopeDepth]

I've been thinking for the past year or so Microsoft was going to try and do something like this with either RIM or Nokia. I think this is the end of MeeGo, which I personally liked and wanted to see succeed. I kind of knew that realistically that wasn't going to happen.

It may have been a tough decision for Nokia to make, but they didn't have a whole lot of choice. They had been caught flat footed by the explosion of mobile computing via Apple and all the Android manufacturers, and half hearted attempts to compete (MeeGo) have made them look ridiculous. They were clearly spinning without a solid strategy for years, and now for better or worse they have one. It's not a terrible fit, both Nokia and Microsoft depend on sheer volume to make money. Windows Phone 7 seems like a solid (albeit very late) competitor to the other top tiered mobile OSes. While it may not be a home run for Nokia, I think it will produce much better results than the Intel/MeeGo flop.

And say what you will about Apple, but most gadget geeks just don't understand the game they're playing. Their software is rock solid and just works for average consumers, who are clearly willing to pay a premium for it. Even if their hardware is 200MHz slower, has 256 MB less RAM, and doesn't have the camera that their competitors have.

PD

[McBeck]

Nokia have been standing still for too long. Their new smartphone platform, was not able to compeet with Android and Apple.

They have spent a huge amount of money on it, so that they are scratching it so shortly after release makes me think that they must realy been in a lot of trouble.

On the other hand Nokia&MS seems like a win-win. Nokia has the HW and MS has a good platform. The new MS mobile platform have gotten some good feedback.

[Gerald]

Nokia, have backed away but for me, anyways in the past, is a reliable phone and it will they have a credit for.

[AVGWarhawk]

I dont know about Nokia but I got my wife a Windows Mobile 7 phone this weekend. It is loaded on a LG Quantum. It's a damn nice phone. Mobile 7 is a very easy interface to use. It is not all glitz and glamour to be sure but mobile 7 works great IMO. And...if my wife can figure it out then it is a great system! I run an Android system on an HTC EVO. I like Android also. I believe these two to be stiff competition for iPhone.

We had a Nokia a long time ago...in fact...it is still sitting in our draw in the kitchen. Not sure why. Has not been used in over 6 years or maybe more.

[AVGWarhawk]

Their new smartphone platform, was not able to compeet with Android and Apple.

Do you mean the phone or the operating system? I have played with Windows Mobile 7 this weekend. It is as intuitive as Android and Apple. In fact, I like it a lot. The icon/desktop could have a better appearence IMO but over all Windows Mobile 7 has apps galore. Many will develop more apps certainly. If the desktop icons and such were better then I believe the operating system would be completely on par with the others. In all reality the some what ugly icons are all that holds it back all be it very litte.

[Jimbuna]

I'm considering getting the latest Blackberry....tis about time they stopped standing still also.

[McBeck]

Originally Posted by AVGWarhawk

Do you mean the phone or the operating system? I have played with Windows Mobile 7 this weekend. It is as intuitive as Android and Apple. In fact, I like it a lot. The icon/desktop could have a better appearence IMO but over all Windows Mobile 7 has apps galore. Many will develop more apps certainly. If the desktop icons and such were better then I believe the operating system would be completely on par with the others. In all reality the some what ugly icons are all that holds it back all be it very litte.

I mean the operating system. The developed the Symbian^3 for smartphones. Was delayed several times and then finally launched with the N8. This was no more than a few months ago.
The Nokia HW should be fine - its just the platform thats lacking