by As rumored, Nokia announced Friday that it is entering into a “broad strategic partnership” with Microsoft and adopting Windows Phone 7 as its primary smartphone strategy.
The announcement came days after a leaked memo from Nokia CEO Stephen Elop hit the press. The memo, which was unusually frank, referred to Nokia as “standing on a burning platform” in the face of competition from Google and Apple. With Symbian barely clinging to its lead in the smartphone space and MeeGo still not shipping, Nokia needed to do something drastic. This is drastic. It’s also Nokia’s only option.
Tomi Ahonen, mobile analyst and former Nokia executive, disagrees (Ahonen also doubted the authenticity of Elop’s memo), but he is one of the few commentators in the wireless industry who actually thinks Nokia’s old smartphone strategy was correct.
The problems Nokia faces are already well documented — most notably by Elop himself — and when looking at its possible options, it becomes clear that partnering with Microsoft is the company’s only hope of reversing course.
Why Not Android?
Before Friday’s announcement, some speculated that Nokia could be announcing that it planned to embrace Google’s Android OS rather than Windows Phone 7. After all, the momentum behind Android shows no signs of slowing down, and with Honeycomb around the corner, the spectrum of Android-based devices continues to increase.
If it were 2008 and not 2011, Android might be a good option for Nokia. Back then, Android was unproven, and handset makers were still waiting things out to see if the platform was worth a significant investment. Companies that aligned with Android early on — like HTC and Motorola — have flourished in the smartphone space.
In 2011, however, the Android ecosystem is crowded. Many of the biggest Android handset makers are former Symbian licensees. If Nokia were to adopt Android, it would be entering a competitive space and be forced to differentiate itself from the rest of the pack.
With Microsoft, Nokia is joining a platform that is just starting out. Yes, OEMs have already signed on to Windows Phone 7, but the platform is still in its beginning stages.
At the Nokia Conversations blog, the company writes:
Nokia wouldn’t be just be another Windows Phone OEM. Nokia plans to help drive and define the future of the platform. That could include contributing expertise on hardware optimization, language support, customization of the software and helping bring Windows Phone to a larger range of price points, market segments and geographies.Nokia has a real chance to help influence and shape Windows Phone 7. Microsoft seems to be willing to give Nokia power and authority over the platform that Google hasn’t extended to any of its licensing partners.
Developer Culture
It might not be sexy, but the Symbian ecosystem is vast. Even before its purchase of Symbian in 2008, Nokia has always pursued strong relationships with developers and developer partners. When building out a new platform — or ecosystem as Nokia is calling it — these sorts of relationships are crucial.Microsoft and Nokia have very similar approaches when it comes to developer communications. Both companies do a good job of getting developers the tools that they need.
Developing and deploying apps is about more than just the SDK and the toolkit — it’s also about the underlying market infrastructure and the support. For all of Android’s strengths, Google’s overall developer support is still lackluster and deploying pay apps in countries that are not supported by Google Checkout requires developers to make individual carrier agreements or seek alternative app stores.
Meanwhile, with Windows Phone 7, Nokia will be pushing developers onto an ecosystem for which Microsoft will provide the tools, documentation and support, and Nokia will still be bringing its own backend infrastructure to the party. Nokia’s press release specifically states that its operator billing agreements will be carried over into Windows Phone 7. In other words, developers that follow Nokia to Windows Phone 7 won’t be losing the existing support ecosystems already in place.
Moreover, because Nokia is coming on-board as a strategic partner and not just as another OEM, the company should have an impact on future developments of Windows Phone 7′s hardware and software.
For developers, that means that the innovations that Nokia has introduced in the past may find their way into Windows Phone 7. Nokia has reiterated that it sees this partnership as a way to bring Windows Phone to more geographies and more price points. For developers looking to target lower-priced phones while still working on a current, modern platform, Nokia’s contributions to Windows Phone 7 might just make the platform more attractive.
Execution is Essential
Partnering with Microsoft may have been Nokia’s only option, but it isn’t a guarantee of success. As Google’s Vic Gundotra tweeted, “two turkeys do not make an eagle.” I would take issue with classifying either Microsoft or Nokia as turkeys, but the point is, this is a partnership that absolutely relies on a solid execution strategy.
The faster that Nokia and Microsoft can sign a definitive agreement, the better. Both Nokia and Microsoft have been slow to adapt to the changing nature of the smartphone market. The longer it takes for the first Nokia-branded Windows Phone to hit stores, the lower the chances for success it will have.
No comments:
Post a Comment