Both Nokia and Microsoft have a lot to gain from the deal. Microsoft's attempts to penetrate the smartphone market will be bolstered by a link-up with a company such as Nokia. The Finnish giant gives it a big leg-up into the smartphone arena, which is something Microsoft has long sought but has yet to accomplish.
“This is great news for enterprises," said Nick Jones, vice president of Gartner Research. "Clients with Nokia devices and Microsoft back ends will have more choice.
“It is also good for the Microsoft divisions responsible for Office, Exchange, Sharepoint, OCS and SystemCentre. They will have more potential users and be able to sell more software. It is also great news for those enterprises who were getting worried about the future of Windows Mobile; now they have an alternative.”
To understand the deal you have to look at the history of the smartphone market. Microsoft initially missed the boat on the internet, with Bill Gates dismissing it as a fad as late as 1993.
The same mistake was made in the smartphone market and Microsoft came to the game too late and with a substandard product. Windows CE 1.0 was power hungry and short on functionality.
So when Microsoft decided to get serious about smartphones, it was forced to seek alliances, but at the time it wanted them on its own strict terms. Some phone manufacturers were not willing to let that happen.
At first Microsoft partnered with UK firm Sendo to develop a smartphone specifically designed to use Microsoft software in a custom-built handset that would take on the likes of Nokia and Motorola.
Yet, just as a phone was produced by the partnership, Microsoft pulled out of the project, citing the impossibility of the two working together. However, Sendo did send some early units of its Z100 platform out and having tried them myself, I know they worked perfectly well by the standards of the time.
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