CEOs: Nokia, Microsoft join forces to disrupt mobile ecosystems

CEOs: Nokia, Microsoft join forces to disrupt mobile ecosystems

Summary: Nokia and Microsoft have made it official: they will partner on a smartphone strategy that they say will disrupt the other "mobile ecosystems" in the market. The companies announced the partnership in an open letter posted on the Nokia web site late Thursday.

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Nokia and Microsoft have made it official: they will partner on a smartphone strategy that they say will disrupt the other "mobile ecosystems" in the market. The companies announced the partnership in an open letter posted on the Nokia web site late Thursday. The companies will make the announcement at an analyst's meeting today.

In a post on Thursday, I suggested that Nokia - the subject of the "burning platform" memo by CEO Stephen Elop earlier this week - would be better off partnering with Google and its Android platform than Microsoft, which is still running far behind the others in the mobile game and is also trying to play catch-up. Clearly, I misread that one.

So what does this partnership mean for both companies. In the letter, Elop and Microsoft CEO Steve Ballmer rattled off a list of details about the deal. Among them:

  • Nokia will adopt Windows Phone as its primary smartphone strategy and help bring it to a larger range of price points, markets and geographies.
  • Bing will power the search on Nokia's devices and Microsoft adCenter platform will provide search ad services.
  • Nokia's content and app store will be integrated with Microsoft Marketplace.

In the joint statement, the CEOs said:

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.

There's no doubt that both companies are powerhouses. And certainly, they'd like it to stay that way. But really, the only way either of them was going to make it in the mobile game - at least at this stage - was to find a strategic partner. And that's what they've done here.

Let's hope the two can break new ground and become true disruptors, as they've promised. There's never anything wrong with some market disruption.

Check out the quick video featuring Elop and Ballmer playing up the deal.

Topics: CXO, Banking, Nokia, Mobility, Microsoft, Legal, Hardware, Enterprise Software, Browser, Smartphones

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35 comments
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  • RE: CEOs: Nokia, Microsoft join forces to disrupt mobile ecosystems

    Move fast Nokia and MS...move fast.
    timotim
    • good advice!

      @timotim If they can move fast, they just might have a chance.
      otaddy
    • RE: CEOs: Nokia, Microsoft join forces to disrupt mobile ecosystems

      @timotim I think it's been in the works for a while. Microsoft has been infusing technology into Nokia for a bit.

      With the new mock-ups surfacing they should have something to show at MWC.
      jessiethe3rd
    • RE: CEOs: Nokia, Microsoft join forces to disrupt mobile ecosystems

      @timotim
      Nokia needs also to be cautious. Apparently, the stock market reacted somewhat badly to the deal and the stock dropped even more. As well, employees are also apparently quite angry at the deal and a large number are on strike. These things might pass, but it will take some clever work by the leaders.
      Wakemewhentrollsgone
  • RE: CEOs: Nokia, Microsoft join forces to disrupt mobile ecosystems

    Nokia, welcome to the world of dull MS where your WP7 phones will have all the imagination and design flair of Steve Ballmer's wardrobe.
    Alan Smithie
    • almost as dull as your posts!!

      @Alan Smithie
      being asked to read your reply's like being asked to go to a paint drying competition

      BORING!!!!
      Ron Bergundy
    • RE: CEOs: Nokia, Microsoft join forces to disrupt mobile ecosystems

      @Alan Smithie someone must of peepeed in their blue jeans and black turtle neck ensemble.
      jessiethe3rd
  • Dork 1 Dork 2 =

    Massive Dork FAIL!
    james347
  • RE: CEOs: Nokia, Microsoft join forces to disrupt mobile ecosystems

    Ya they are dorks but who cares. I'm sure there are more but off the top of my head, Branson is the only sucessful CEO I can think of who isn't a dork.

    Dork or not, Ballmer looks better this morning!
    Mythos7
  • 'two turkeys don't make an eagle'

    ...that sums it up on the technical side.
    Lame Nokia partnering with evil M$ is a combination freedom loving people should avoid!
    iCrap is a no go too!
    That leaves us with all the Linux based OSEs.
    Linux Geek
    • RE: CEOs: Nokia, Microsoft join forces to disrupt mobile ecosystems

      @Linux Geek

      No but given enough time two turkeys can feed the world.
      Mythos7
      • RE: CEOs: Nokia, Microsoft join forces to disrupt mobile ecosystems

        @Mythos7
        They can continue to feed the ever growing market share of Android and iOS for at least five more years.
        Synthmeister
    • RE: CEOs: Nokia, Microsoft join forces to disrupt mobile ecosystems

      @Linux Geek Oh yes! I'm sure Android and Ubuntu can solve all our problems. Everything is garbage except the patched together OSS fragmented disaster.
      Tiggster
    • open

      @Linux Geek
      only fools fall for the "open" bs of google. when will they "open" their search algorithm?

      as rdm put it best: "The highest level open software in Android is Apple?s WebKit browser (also shared with Nokia, BlackBerry and Palm), while Android?s ?with Google? apps are closed source commercial software. Android?s highly regarded Gmail app is not only closed source, but doesn?t even support interoperability with open mail standards, forcing users to resort to the second rate, separate but not equal ?other mail? app to access email from competitors. That?s the kind of behavior one would expect from a Microsoft, not a Google, and the sort of thing that would be reviled as ?EmailGate? were it occurring on the iPhone."
      banned from zdnet
  • Verizon & Sprint

    Does this mean Nokia will be making cdma phones also?
    NavGuy
    • They used to in the past.

      @NavGuy
      My first phome on Verizon (Bell Atlantic at the time) was a Nokia.
      John Zern
  • RE: CEOs: Nokia, Microsoft join forces to disrupt mobile ecosystems

    The only immediate loser of this would be Intel. They abundant the Moblin project to work together with Nokia on Meego. Now Nokia is not going to commit to the Meego anymore......
    yoroto
  • RE: CEOs: Nokia, Microsoft join forces to disrupt mobile ecosystems

    Will the market support 3 phone/tablet OS's?
    thofts
    • Sure

      @thofts

      Why not? I think the specific conditions that allowed the asymmetric marketplace that evolved in desktop OS world are unlikely to repeat themselves. A healthy consumer market allows for multiple choices, not just one or two.
      oncall
    • RE: CEOs: Nokia, Microsoft join forces to disrupt mobile ecosystems

      @thofts <br>There are actually more than three; more than iOS, WP7 and Android. At the very least, there is WebOS, Meego and Bada . . . and to some extent, Symbian will also continue to exist. You also need to look beyond phones and tablets to other types of electronic devices that include microprocessors, everything from cars to tvs, PVRs to printers and so much more. All these various OSes will be competing across a very broad range of markets.
      Wakemewhentrollsgone