The New Odd Couple - Microsoft & Nokia Collaborate on Dual Fronts

[Ekkie Tepsupornchai]

<div class='os_post_top_link'><a href='http://press.nokia.com/PR/200502/980375_5.html' target='_blank'>http://press.nokia.com/PR/200502/980375_5.html</a><br /><br /></div>It's too bad I couldn't report this yesterday. This would have been a perfect theme for Valentine's day! :ppclove: It's odd enough to see both Microsoft and Nokia linked together in one news announcement, but believe it or not, we actually have two separate (and unrelated) efforts involving the two corporate giants.<br /><br /><b>#1. Nokia Licenses Microsoft Exchange Server ActiveSync Protocol</b><br /><i>"Nokia's Enterprise Solutions business group today announced that it has licensed Microsoft Corp's Exchange Server ActiveSync protocol to enable wireless and direct synchronization between Microsoft Exchange Server, part of the Windows Server System and future Nokia enterprise mobile devices. &lt;...> The collaboration between the two companies will allow Nokia to build a direct over-the-air synchronization link between Nokia enterprise mobile devices running on Nokia's Series 60 and Series 80 software platforms and Microsoft Exchange Server 2003 for email and other personal information management (PIM) data..."</i> -- Read the full announcement <a href="http://biz.yahoo.com/prnews/050214/ukm025_2.html">here</a>.<br /><br /><b>#2. Microsoft and Nokia Collaborate on Mobile Music Solution</b><br /><i>"Today at the 3GSM World Congress, Microsoft and Nokia announced they are working together to ensure consumers can enjoy music from the newly launched mobile music solution offered by Nokia and Loudeye to wireless operators on both Nokia handsets and on Microsoft(R) Windows(R) XP-based PCs. The two companies have also agreed to long-term collaboration on extended digital media format support. &lt;...> This dual-technology-stack support from both companies will further broaden the range of music enjoyment choices for consumers and delivery options for content owners and service providers, as well as ensure easy device connection and content flow between Nokia handsets and Windows XP-based PCs."</i> -- Read the full annoucement <a href="http://biz.yahoo.com/prnews/050214/ukm025_2.html">here</a>.<br /><br />My first take to the first story was "Why ActiveSync?", but then I remember actually trying to use Nokia software to sync my contact information between Outlook and my Nokia3650 a couple years ago.. and THEN I tried to imagine that software being used as a wireless, enterprise solution. :huh: *SHIVER* Let's just say it wasn't a pretty picture. ;) As for the music collaboration, Microsoft is helping to deliver music to a competing smartphone platform? Ok. That was somewhat unexpected but not completely irrational. What are your thoughts? Can you see these two giants as long-term parters? Or is this just lightning striking twice (on Valentine's Day no-less)?

[surur]

Not much reason to get a MS Smartphone then, is there? At least PE devices still have the large app base to compete with Symbian with.

Surur

[Felix Torres]

Don't look at it from MS's point of view; look at it from Nokia's.

They needed to add a credible music-delivery solutions and they needed it *now*.
They had three choices: Apple, Real, and MS.

MS has the stuff working *now* and you're not tied to any specific content vendor.
Nothing odd there.
Now, as for MS, they had to make a choice: favor Windows Media or Windows mobile? They went with the money: putting Windows Media on Nokia means two of the three serious Smart Phone Platforms run Windows Media. That's a big boost to Windows Media in the mobile market.
Windows Mobile, they probably figure can take care of itself.

Plus, it helps them get the EU off their case if they freely license their best tech to their main euro competitor.

[Ekkie Tepsupornchai]

Don't look at it from MS's point of view; look at it from Nokia's.

They needed to add a credible music-delivery solutions and they needed it *now*.
&lt;...>
Nothing odd there.
Agreed. The deal makes strategic sense. However, I label the relationship "odd" only because I never thought I'd see these two companies collaborate with eachother and certainly don't think very many others did either.

Now, as for MS, they had to make a choice: favor Windows Media or Windows mobile? They went with the money: putting Windows Media on Nokia means two of the three serious Smart Phone Platforms run Windows Media. That's a big boost to Windows Media in the mobile market.
Windows Mobile, they probably figure can take care of itself.
Sure. This is not unlike MS creating MS Office for the Apple platform, though Apple is not nearly as serious of a threat to the Windows platform as is the Symbian OS is to the Windows Mobile platform.

[Menneisyys]

This news will prolly have a lot of debate in the Finnish Internet communities. As one of the greatest PDA/Symbian weblogs, http://lehto.net/blogi/ , still doesn't contain the news (and, therefore, contains no reactions), I may return to the Finnish reactions to the cooperation a bit later. Some of first commentaries from Tietoviikko (http://www.tietoviikko.fi/ ):

http://commentit.talentum.com/ccs/duuni.net/keskustelu_tread.jsp?group=duuni_tietotekniikka_yleensa&amp;message=678646

(an explanation to non-Finnish readers: Paasikivi, and, mainly, the infamous Finnish president, Urho Kekkonen, were real politics. They understood that Finland could any time be annexed by the Soviet Union and, therefore, they have chosen to be completely independent, even if a lot of fellow Finnish citizens and the majority of the West considered them coward and 'let's lick all Soviet asses'-type of people. History has shown that they were right – Finland has managed to retain her independence during the Soviet era, which was indeed a feat, considering that noone would have defended Finland in the case of a Soviet annexion.)


"Nokia on the Paasikivi-Kekkosen line

...

Just like Finland's leader after WWII, Nokia also understands the real situation in the world and that the software giant can't be beaten, not even in the mobile area.

...

Moving to Microsoft's format was a big smash into the face of Nokia's old business partner, Real Networks. On the other hand, however, Apple's moving to the Motorola camp didn't leave any moving possibilities to Nokia either.

It's a bad thing that it was only last year that multimedia-unit-CEO Anssi Vanjoki announced to be the year of the beakthrough of the multimedia. Nokia has lost a lot of time with developing the N-Gage, and, during this time, Apple had the time to develop iPod in peace.

For real competition in the mobile area to survive, a collaboration between Apple and Nokia would have been a marriage done in Heaven. Tactical choosing have, however, resulted in a non-sacred marriage with Microsoft. "


Some other additions not available in the English-language press:

http://www.helsinginsanomat.fi/tuoreet/artikkeli/1101978552486

"Microsoft, up to this point, has been clearly worse at grabbing market share than Nokia. Nokia's enterprise solutions-CEO Mary McDowell and the multimedia-unit-CEO Anssi Vanjoki mentioned on Monday that in present world, two firms can compete with each other in one area, while co-operate in another.
"I think this news was surprising to a lot of people. This is by far not a David and Goliath-situation: the question is much more about two Goliaths. But, even gloaths have the same interests." – McDowell said. "

[Ekkie Tepsupornchai]

Thanks Menneisyys. Your observations highlight some of the reasons why I never would have foreseen these two companies working together. I'd be interested in hearing more regarding the Finnish reaction once word really spreads. It's amazing sometimes how emotional some people can become when a deal like this happens.

[Menneisyys]

Thanks Menneisyys. Your observations highlight some of the reasons why I never would have foreseen these two companies working together. I'd be interested in hearing more regarding the Finnish reaction once word really spreads. It's amazing sometimes how emotional some people can become when a deal like this happens.

OK, I'll keep you (this thread) posted if some usable stuff emerges on Finnish forums like this.