Well first off, this is a big deal. Nokia, the world’s largest mobile device manufacturer, needed to make a major move in order to stay relevant in the mobile space. Additionally, Microsoft needed to get some traction in the mobile operating system space. iPhone and Androidhave built out very strong eco-systems, taking market share from both Nokia and the Symbian operating systems, in a major fashion over this last year. Nokia’s CEO Stephen Elop made this partnership decision, in part, to help facilitate the building of a new mobile eco-system. What makes up a mobile echo system, you may ask. A mobile eco-system includes:
- Functionality (e.g., Office Mobile)
- Games integration
- Tools (e.g., search, maps)
- Hardware manufacturers
- Peripheral providers
- Mobile OS
- Tablet interaction (like the Lenovo laptop with pop-out Android screen)
- Available cloud-based services
- Enterprise mobility solutions
- Application distribution channels
Nokia Corp. will get billions of dollars from Microsoft Corp. for ditching its current smart-phone software in favor of Windows Phone 7, Nokia CEO Stephen Elop said Sunday, in defense of the deal. Nokia deliberately chose WP7, both to avoid the commoditization of Android and to create a more competitive market, where at least three major modern Smartphone platforms exist rather than to risk an Apple and Google duopoly. A MeeGo device would exist this year, but its role was no longer a central one after Symbian is ultimately being phased out of the high end device market.
When looking at this partnership, one can see how it makes sense for both parties. Microsoft gets a massive global footprint, spending a small piece of the capital that the company has acquired over the years. Nokia gets a high-end mobile operating system that has received solid industry reviews. Together, these two companies can attempt to grow market share against the big two, Android and Apple. But what does this mean for BlackBerry maker RIMM? To be frank the news is not good. As stated in this article, there are many parts to a thriving mobile eco-system. It is difficult for a company to “go it alone” without either a strong partnership or a truly innovative and compelling product. Time will tell, but I expect RIMM to be acquired later this year. As leaders in enterprise mobility, Smartsoft Mobile Solutions’ goal is to keep organizations informed to the rapidly evolving mobility market.
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