Fear of Google drove Nokia-Microsoft partnership

Fear of Google drove Nokia-Microsoft partnership

Summary: The fear of Google drove most of the big parts---the billions of dollars, the decision to challenge Android and concerns about commoditization---of the Microsoft-Nokia partnership.

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Nokia will reportedly net billions of dollars from Microsoft. The software giant was happy to pay up to Nokia to grab share. And Nokia went with Microsoft's fledgling Windows Phone 7 over Android because it was concerned about a mobile OS duopoly.

In other words, fear of Google drove damn near everything about the  Microsoft-Nokia partnership.

Since Nokia and Microsoft unveiled their partnership last week the following details have surfaced.

  • Nokia CEO Stephen Elop defended the Microsoft deal in Barcelona Sunday at the Mobile World Congress. Elop had no choice: Nokia shares were hammered and the consensus view is that Microsoft got a great deal. Elop's reply: Microsoft is paying us billions of dollars. Why would Microsoft pay that much? Microsoft had no choice. If Nokia went with Android, Google would have controlled the mobile market.
  • Elop noted that going with Android would have solidified an Android-Apple iOS duopoly. With Nokia being a swing vote, it went with creating a third player.
  • Nokia was also concerned about being commoditized. There are multiple handset makers using Android. To Nokia, Android meant commodity devices.

It's your call whether you actually buy those points. You could argue that Nokia just followed the money. Chances are that the Nokia-Microsoft partnership is much more nuanced, but the driving force appears to be fear of Google domination.

Related:

Topics: Nokia, Android, Banking, Google, Microsoft

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71 comments
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  • Nokia just lost its soul and sold to the Evil Empire!

    History will repeat.
    iOS, Android, Window 7 Mobile, WebOS and Blackberry OS.
    In 5 years, only two will be still standing.
    Which 2?
    frankhsu889
    • RE: Fear of Google drove Nokia-Microsoft partnership

      @frankhsu889 I use Google and actually enjoy their products. I think Android is technically flawed (in how programs access Android's core memory, forcing more hardware demands and driving up cost in production and passed on to the consumer) which is why iOS and WP7 are inherently faster than Android.<br><br>But...to call Windows the Evil Empire over Google is more than a bit much. Google's business model is based on selling consumer data. It's Google who works with governments in monitoring, providing data w/o search warrants, communist goverments in censorship and so on. I could go on...but please..Evil Empire?
      retnep
      • RE: Fear of Google drove Nokia-Microsoft partnership

        @retnep

        Both of these companies are knee deep in evil. Apple, with their "If you want to own our phone, you must tell us where you are *all the time*" shenanigans is almost as bad.

        That said, I feel that Google is more evil *now* than MS *now*. Google have been getting more-and-more evil, and MS less-and-less so. Still, those of us who have been around remember those days more than a decade ago when when MS really was the big bad guy; I think a lot of the tolerance for Google comes from people's lasting resentment toward MS. While I am, myself, getting over it, I can't say I blame 'em.

        Thus, we get to choose between three companies, none of which are all that great. C'est la vie.
        x I'm tc
    • No reason to think there will only be 2.

      @frankhsu889

      The mobile space is fundamentally different than the desktop PC market and applying the same tired old concepts is flawed.
      Bruizer
    • M$ and Apple

      @frankhsu889

      now no more guessing needed on your part!!
      Ron Bergundy
    • RE: Fear of Google drove Nokia-Microsoft partnership

      @frankhsu889 <br><br>In all honesty, probably iOS & WP. When Oracle nails Google and they have to pay up, Android will probably go the way Google was hoping to take should Web Apps take off, back to nowhere. Also, this is key for MS, so they are willing and able to sink a lot of money into it. Google will not be.
      ShamooToo
      • RE: Fear of Google drove Nokia-Microsoft partnership

        @Angrypug

        Google will pay up, probably billions, and then go marching right on with Android.

        I actually think Apple is in the most trouble. The death by a thousand cuts took down the Mac last time, and we see history repeating itself here with Android and WP7, and, I suspect, Windows 7, which *will* begin to move into the slate space.
        x I'm tc
      • RE: Fear of Google drove Nokia-Microsoft partnership

        @Angrypug It doesn't look like Oracle is going to be nailing anybody in this one so far. Mind you all Google has to do is pay Oracle for past transgressions and move to another language with a conversion tool for devs. I know I've been wanting Python and/or Go on Android much more than Java. Productivity is simply off the charts with those two.
        storm14k
    • RE: Fear of Google drove Nokia-Microsoft partnership

      @frankhsu889 I don't think it will be WM. MS trying to buy their way back in to the mobile business only works if consumers buy the phones. How much they pay Nokia doesn't matter.
      LarsDennert
  • RE: Fear of Google drove Nokia-Microsoft partnership

    Yeah, I fear Google too. Good move.

    I wonder why no one covered the fact that ChromeOS netbook testers were spammed to hell and back this morning from an e-mail service Google so convieniently signed them up for WITHOUT their permission? If that sounds familiar, Buzz might ring a few bells :)
    The one and only, Cylon Centurion
    • RE: Fear of Google drove Nokia-Microsoft partnership

      @Cylon Centurion 0005
      that's irrelevant. Android is 10 times better than windoze and it does not need bribes to dominate like windoze.
      Linux Geek
      • RE: Fear of Google drove Nokia-Microsoft partnership

        @Linux Geek

        WP7 is really, really solid and polished for a 1.0 release. If the promised improvements come quickly, it is a real contender.

        Enjoy the competition. It is good for all of us. We should root for success from MS. It will make sure Google keeps making Android better, too.
        x I'm tc
      • If the promised improvements come quickly ...

        @jdakula
        Fool me once ... You have to be new to tech or have a short memory to be optimistic about MS's promises. Don't buy our competitor's product because ours is going to be better and will be out real soon now. http://msdn.microsoft.com/en-us/magazine/cc164028.aspx
        random_name
      • Actually, you're wrong!

        Android is a billion times better than windoze and just a million times better than iOS; all that makes Android so much better is that, it was developed by Google. Once Google makes Android a trillion times better than windoze, it will become the only OS in PCs and on smartphones and on tablets. Google will become the first quadrillion dollar corporation. Within 2 years!

        ;)
        adornoe
      • RE: Fear of Google drove Nokia-Microsoft partnership

        @adornoe

        Agreed. I think we'll also see Eric Schmidt run for 2012. Google will become the first corporation to merge with the US government! That way, we'll see a national mandate for cloud computing, and the outlaw of old skool harddrives. That way President Schmidt can monitor us and keep us safe from terrorism and cyber criminals. :)
        The one and only, Cylon Centurion
      • Cylon Centurion 0005: Actually, Google and the U.S. gov't have already

        merged; that's according to some people.

        Google has some very good friends in high places in Washinton, and they're using those connections to their advantage.
        adornoe
      • RE: Fear of Google drove Nokia-Microsoft partnership

        @Linux Geek
        aminy23
  • Well, if Microsoft really did pay Nokia &quot;billions&quot;, that is shocking.

    But, Microsoft's pockets are deap, and, there is a lot riding on mobile. Billions it seems.

    Also, the final agreement has NOT been signed, the wheels could come off of this yet.
    DonnieBoy
    • And there was this

      "There are multiple handset makers using Android."

      Not even Nokia thinks there will be many left on wp7 in a couple of years. great move Ballmer;-)
      Richard Flude
      • its obvious you are clueless

        @Richard Flude
        but not surprising as you aren't as smart as you try to fool us into believeing!!!

        deal with it - we know you hate it your pissed but thats life leaving you behind.

        CATCH UP!!!
        Ron Bergundy