Strategic insights
Why the Nokia/Microsoft Deal is a Big Thing

Earlier today, Nokia announced that it would enter into a strategic partnership with Microsoft. Future Nokia phones will use the Windows Phone 7 platform, and bring some of its own technologies into the mix as well.

Why is that such a big deal? Well, let us put it into perceptive.

Nokia has been stuck like a deer caught in the headlights ever since Apple came out with the iPhone. As Nokia's CEO said a few days ago, their competitors are cranking out devices faster than "the time that it takes us to polish a PowerPoint presentation."

At the same time, Microsoft's new Phone 7 is actually quite good, but they have a hard time because it lacks scale. The Microsoft Phone platform is a worthy contender to both Apple and Android. And, coupled with the future potential of XBOX, it has the potential to be the phone platform for gamers.

Note: Although, Microsoft needs to embrace a multi-platform mobile XBOX strategy, instead of using it to leverage Phone 7.

Take a look at what happens when you mix the two. Nokia, the failing company with a huge market share + Microsoft Phone 7, the new interesting platform that lacks an audience.

Holy Moly!

Obviously, every Nokia owner needs to switch to a Nokia Phone 7 for this to actually happen - which isn't entirely likely. People are already switching to either iPhones or Android.

To succeed, Nokia needs to bring out a really great Nokia Phone 7 within a very short time. They have to demonstrate that they can deliver on this new partnership, instead of just making another fancy Powerpoint.

Update: Press Conference

Highlights from the Nokia/Microsoft strategic Partnership

• 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.
• 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.
• 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.
• 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.
• 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.
• 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.
• 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.
• 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.
• Nokia's content and application store will be integrated with Microsoft Marketplace for a more compelling consumer experience.