Nokia and Microsoft announce Partnership – Observations

So Nokia and Microsoft have joined to sell phones in this press release at 0720GMT in London..

A couple of interesting thoughts / observations:

Nokia will adopt Windows Phone as its primary smartphone strategy, innovating on top of the platform in areas such as imaging, where Nokia is a market leader.

  • It appears Nokia is walking away from their own software platforms of Symbian and Meego.
  • Nokia’s strength has always been in manufacturing excellent handsets, not the software. And they have shown they can’t adapt to the fast moving software industry.
  • Microsoft doesn’t want to do hardware and believes it is strong in software.
  • It makes a kind of sense.
  • But Nokia has been very proud of it’s open source / Linux background, and internally there is going to be a lot of problems with staff. Nokia is demanding of it’s employees and their loyalty which may lead to execution problems.

Nokia Maps will be a core part of Microsoft’s mapping services. For example, Maps would be integrated with Microsoft’s Bing search engine and adCenter advertising platform to form a unique local search and advertising experience.

  • With mobile search, maps & ‘cloud’ powering so many features on handsets you need a tight integration with either Bing or Google or Yahoo.
  • Nokia failed to make it’s own online strategy even after purchasing dozens of companies in a an attempt to build one.
  • It’s a nice boost to Bing, Live etc to try and get some more market share.

Nokia’s extensive operator billing agreements will make it easier for consumers to purchase Nokia Windows Phone services in countries where credit-card use is low.

  • Nokia has huge engagement with service provider / carrier / telcos, and can customise it’s product presentation to each one.
  • Nokia also makes a vast array for telecommunications equipment for 3G and 4G Networks. End to end integration is possible.
  • Microsoft doesn’t have to build these relationships and probably never could have.

What it doesn’t say

  • Microsoft might not have been getting enough traction with other manufacturers such as HTC, Samsung, Motorola etc because they are committed to Android and see more value in that product.
  • this is an admission that the Windows Phone 7 isn’t winning in the market, or likely to.
  • Nokia is now becomes a handset manufacturer, and that probably is what Nokia does well.
  • Intel isn’t getting any love from Microsoft lately. None here either.
  • That Microsoft relationships with existing partners for Windows phone have gone elsewhere e.g. HP and Samsung aren’t creating products. This is a big setback to Microsoft who probably thought that existing relationships leveraged from the corporate products such as Windows 7 and
  • Microsoft desperately needs a mobile handset strategy for their Office Communicator IP Telephony / Presence platform (and so does Cisco with the Cius) – they might have found one here.

And finally, perhaps the most telling point – not a single word about corporate, enterprise or business as customers. I really wonder what that means ?

  • Ivan Pepelnjak

    “not a single word about corporate, enterprise or business as customers” – very simple: every single vendor thinks their future is tied to teenagers mostly spending other people’s money.

  • Phil Ashman

    Probably too early to call as anything can happen when it comes to mass marketing, but if I were a betting man, I wouldn’t bet on Nokia & MS succeeding. It reminds me of two has-been stars trying to create success with a combined effort!