Nokia and Microsoft – an unholy alliance?

We are living in interesting times… Nokia and Microsoft are “shaking hands” on many different things and not just a smartphone OS platform.

Till now they were considered to be “enemies” even though they had already agreements on Exchange and Office technologies. Starting from today, they are discussing about Ovi Maps and Bing (Nokia owns Navteq, one of the big two mapping companies – the other one is TeleAtlas owned by TomTom), XBox Live on Nokia devices, Bing Search and adCenter on Nokia devices and services.

Time will show if this strategic alliance can bear fruit or just cost money and lost jobs. The only certain thing is that competition is increasing and this is good for all of us. Some people in key positions are losing their sleep…

 

 

Today’s press release:

Nokia and Microsoft announce plans for a broad strategic partnership to build a new global ecosystem
February 11, 2011


Companies plan to combine assets and develop innovative mobile products on an unprecedented scale

Nokia Corporation
Stock exchange release
February 11, 2011 at 9.30 (CET +1)

London, Feb. 11, 2011 – Nokia and Microsoft today announced plans to form a broad strategic partnership that would use their complementary strengths and expertise to create a new global mobile ecosystem.

Nokia and Microsoft intend to jointly create market-leading mobile products and services designed to offer consumers, operators and developers unrivalled choice and opportunity.  As each company would focus on its core competencies, the partnership would create the opportunity for rapid time to market execution.  Additionally, Nokia and Microsoft plan to work together to integrate key assets and create completely new service offerings, while extending established products and services to new markets.

Under the proposed partnership:

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

– Nokia would help drive the future of Windows Phone.  Nokia would contribute its expertise on hardware design, language support, and help bring Windows Phone to a larger range of price points, market segments and geographies.

– Nokia and Microsoft would closely collaborate on joint marketing initiatives and a shared development roadmap to align on the future evolution of mobile products.

– Bing would power Nokia’s search services across Nokia devices and services, giving customers access to Bing’s next generation search capabilities.  Microsoft adCenter would provide search advertising services on Nokia’s line of devices and services.

– Nokia Maps would 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

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

– Microsoft development tools would be used to create applications to run on Nokia Windows Phones, allowing developers to easily leverage the ecosystem’s global reach.

– Nokia’s content and application store would be integrated with Microsoft Marketplace for a more compelling consumer experience.

“Today, developers, operators and consumers want  compelling mobile products, which include not only the device, but the software, services, applications and customer support that make a great  experience,” Stephen Elop, Nokia President and CEO, said at a joint news conference in London. “Nokia and Microsoft will combine our strengths to deliver an ecosystem with unrivalled global reach and scale. It’s now a three-horse race.”

“I am excited about this partnership with Nokia,” said Steven A. Ballmer, Microsoft CEO. “Ecosystems thrive when fueled by speed, innovation and scale. The partnership announced today provides incredible scale, vast expertise in hardware and software innovation and a proven ability to execute.”

Please visit www.nokia.com/press for press materials.

About Nokia

At Nokia, we are committed to connecting people. We combine advanced technology with personalized services that enable people to stay close to what matters to them. Every day, more than 1.3 billion people connect to one another with a Nokia device – from mobile phones to advanced smartphones and high-performance mobile computers. Today, Nokia is integrating its devices with innovative services through Ovi (www.ovi.com), including music, maps, apps, email and more. Nokia’s NAVTEQ is a leader in comprehensive digital mapping and navigation services, while Nokia Siemens Networks provides equipment, services and solutions for communications networks globally.

DISCLAIMER
Nokia and Microsoft have entered into a non-binding term sheet. The planned partnership remains subject to negotiations and execution of the definitive agreements by the parties and there can be no assurances that the definitive agreements would be entered into.

 

Nokia – Press Release.

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