4 Non-Obvious Aspects of the Nokia/Microsoft Deal

by Ostatic Staff - Feb. 18, 2011

Ever since Nokia announced that it is tying its smartphone fortunes to Microsoft's Windows Phone 7 platform, expressions of shock have abounded, and we have written about why there may be problems with this hookup, especially as Apple's mobile OS and Android are taking on so much momentum. As details of the arrangement between Nokia and Microsoft emerge, though, there may be more than meets the eye--for Nokia, for open source platforms, and more.. Here are four aspects of the deal that may not be immediately obvious.

Could the Nokia Microsoft Deal Benefit Linux-based Platforms? PCWorld makes the point that Linux-based platforms could actually end up benefiting from the deal. For example, LiMo--a mobile platform written off by many--is out in a new version and is an example of a smaller mobile platform that may benefit as buyers seek choice and flexibility.

Nokia and Microsoft Have Deep Pockets. Let's not forget the financial might of Nokia and Microsoft. As just one example of how that might could put wind at their backs in the mobile space, there are reports that the companies are wooing developers with free smartphones. Developers count for a whole lot in the mobile space.

Nokia Gets Cash in the Deal. While it wasn't initially reported, Nokia's deal with Microsoft includes billions of dollars in payments for Nokia from the Redmond giant. Nokia may be faltering in the mobile market, but it will have cash in hand through its latest deal, and that gives it flexibility.

Nokia's Leader Comes from Microsoft. Nokia's CEO Stephen Elop comes from Microsoft and is intimately familiar with how the Windows platform is evangelized for business use, and more.  He may have Windows-centric strategies in mind that are being ignored, such as caring more about the business smartphone market than the consumer market, which Apple and Android are running away with. He probably also knows of ways that Nokia and Microsoft can provide financial incentives to enterprises that adopt their platforms.