Nokia And Microsoft Officially Announce Their Marriage

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So the “D” day has finally come and as we had predicted around a month back, Microsoft has managed to pocket Nokia – atleast virtually.  Today Nokia has posted letter to its web site from Microsoft CEO Steve Ballmer and its CEO Stephen ELOP outlining the partnership between the two companies. Both the companies are claiming this as a step towards establishment of a “third mobile ecosystem” to challenge Apple and Google dominance in Smartphone market.

“Today Nokia and Microsoft intend to enter into a strategic alliance. Together we will bring consumers a new mobile experience with stellar hardware, innovative software and great services. We will create opportunities beyond anything that currently exists,” says Nokia CEO Stephen Elop.

“In this partnership with Nokia, Microsoft brings its’ Windows Phone software and the brand mobile consumers want like Bing, Office and of course Xbox Live,” says Microsoft CEO Steve Ballmer.

Below is the video in which Stephen Elop and Steve Ballmer are “trying to predict” the blooming future from this engagement:

httpv://www.youtube.com/watch?v=xe3ksR8zgXg

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We don’t know, at this stage, how far Industry and market will react to much anticipated tie-up but there are few issues on the tablet which certainly need to be address by Nokia :

  1. Will Nokia empowered by only Windows Phone7 OS or continue Symbian 3 improvement?
  2. What will be the faith of MeeGo mobile OS which is under development jointly by Nokia and Intel?
  3. Transition for Nokia will be time consuming. Already in deep-dive, can Nokia afford to go on back foot during this transition of 1 -2 years?

While we come back to you with new findings and another great analysis on this newly developed situation, we leave with the letter below which came through Nokia as final announcement. I am sure, many of our readers will have their own thoughts and discussion point on this letter once we will get back:

Today in London, our two companies announced plans for a broad strategic partnership that combines the respective strengths of our companies and builds a new global mobile ecosystem. The partnership increases our scale, which will result in significant benefits for consumers, developers, mobile operators and businesses around the world. We both are incredibly excited about the journey we are on together.

While the specific details of the deal are being worked out, here’s a quick summary of what we are working towards:

  1. 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.
  2. Nokia will help drive and define the future of Windows Phone. Nokia will contribute its expertise on hardware design, language support, and help bring Windows Phone to a larger range of price points, market segments and geographies.
  3. Nokia and Microsoft will closely collaborate on development, joint marketing initiatives and a shared development roadmap to align on the future evolution of mobile products.
  4. Bing will power Nokia’s search services across Nokia devices and services, giving customers access to Bing’s next generation search capabilities. Microsoft adCenter will provide search advertising services on Nokia’s line of devices and services.
  5. 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.
  6. 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.
  7. Microsoft development tools will be used to create applications to run on Nokia Windows Phones, allowing developers to easily leverage the ecosystem’s global reach.
  8. Microsoft will continue to invest in the development of Windows Phone and cloud services so customers can do more with their phone, across their work and personal lives.
  9. Nokia’s content and application store will be integrated with Microsoft Marketplace for a more compelling consumer experience.

We each bring incredible assets to the table. Nokia’s history of innovation in the hardware space, global hardware scale, strong history of intellectual property creation and navigation assets are second to none. Microsoft is a leader in software and services; the company’s incredible expertise in platform creation forms the opportunity for its billions of customers and millions of partners to get more out of their devices.

Together, we have some of the world’s most admired brands, including Windows, Office, Bing, Xbox Live, NAVTEQ and Nokia. We also have a shared understanding of what it takes to build and sustain a mobile ecosystem, which includes the entire experience from the device to the software to the applications, services and the marketplace.

Today, the battle is moving from one of mobile devices to one of mobile ecosystems, and our strengths here are complementary. Ecosystems thrive when they reach scale, when they are fueled by energy and innovation and when they provide benefits and value to each person or company who participates. This is what we are creating; this is our vision; this is the work we are driving from this day forward.

There are other mobile ecosystems. We will disrupt them.

There will be challenges. We will overcome them.

Success requires speed. We will be swift.

Together, we see the opportunity, and we have the will, the resources and the drive to succeed.

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