Opinion:In the last three months Microsoft has shown Xbox's future, the future of Windows, the future of his company and now the future of mobile business ... and it's a bet that hurts to read for partners.
The deal in a nutshell is this: Microsoft will pay €5,44 billion (£ 4 billion) to Nokia for its devices and Services Division and the rights to license its patents and mapping services. Nokia employees affected will stay where they are but become employees of Microsoft and Nokia will evolve to become a telecommunications infrastructure business. The deal should go through in Q1 2014.
Microsoft buy Nokia: what does it mean for Microsoft
As Apple and in lesser extent Google and Samsung, Microsoft now has vertical integration in the market-i.e. makes software and hardware. This model allows you to develop Windows Phone handsets and Lumia (if the branding remains) together and then optimizing design, functionality, performance and profit maximization.
Basically, the agreement will also give Microsoft Access to emerging markets. 45.5 percent of shipments Nokia was in Greater China, Middle East, Africa and Latin America in 2012.
Microsoft buy Nokia: what does it mean to his rivals
To its competitors the deal should see a Microsoft more competitive, but the company's decision to build their own phones will also enter into direct competition with its partners of Windows Phone from Microsoft.
In fact, this is likely to put more effort on Microsoft by the likes of HTC, Samsung and ZTE as none have consistently indicated a strong commitment to the operating system and is now able to compete with the Microsoft license fee charges itself: nothing. Given this scenario, many can also ditch Windows Phone development altogether.
The problem for them is that would mean throwing all their eggs in one basket with Android (except Samsung who Tizen) – and Google is ramping up its Nexus and Motorola ranges.
Of course, Microsoft alone in telephones would be new territory for the company and for the moment is trying to appease partners. EVP for operating systems companies, Terry Myerson, said today "[deal] will make the market for all Windows phones, from Microsoft, or from our OEM partners."
But the fact is Microsoft earns substantial royalties from Android and Nokia patents only purchases are likely to increase that so partner – given their underwhelming efforts – will not be the primary concern.
Microsoft buy Nokia: what it means for you
In the short term the answer is: not much. For the next 3-6 months, Nokia phones will continue to be sold as before and even after buying Nokia roadmap next year will be set in stone for a period that could be a few years before the first cell phone really inspired to go on sale. Watch Google Calendar buy Motorola (August 2011) and Moto X (August 2013).
Microsoft will also honor all warranties by Nokia while keeping all employees of Nokia, so little is expected to change in the supply chain.
The flip side, Microsoft and Nokia have worked together since their exclusive partnership started in February 2011, so what you see by Lumias today is unlikely to be far from the vision of Microsoft. Microsoft also enforces a number of rigorous design, button layout and hardware parameters anyway, so why do you want to see radical change?
Microsoft and Nokia: why you should care
If little is likely to change in the short term, so why should you care? Because things will change substantially in the long term.
The most likely to suffer are smaller laptop makers as the deal reduces the reliance on Windows Phone but pushes them in bed with Android, which weakens them as choice evaporates. Google, if it make you feel doubly safe and see him push your hardware (either via the Nexus brand or Motorola) remains to be seen.
Similarly, the deal will vindicate the decision of Samsung executives to develop and could see Tizen accelerate the schedule for portable Tizen releases. Their success will make or break his long-term relationship with Google.
As for Apple, knows that Microsoft now has new supply chain efficiencies and best opportunity to accelerate the development of Windows Phone, which means you will need to regain lost momentum.
It is questionable if it sees the deal as a chance to eradicate the Windows Phone with iPhone as Apple is unlikely to hit the bargain price tags of the entry-level Lumias.
Microsoft and Nokia: questions remain
So the general consensus is while the deal will change little in the short term the multiplier will be significant long-term effects. There are still important questions:
Back to Nokia's CEO Stephen Elop, Microsoft has made the new favorite to take over from Steve Ballmer. But it is the man who has probably brought down Nokia of demolition its independence really visionary software to advance your business?As a fan of Microsoft and Windows Phone reacts to a potentially closed business model and it will push them toward Android-Microsoft can really survive without a partner?Nokia has really left the business laptop? Small print on front only forbids Nokia to do phones under its own brand until December 31, 2015, then the reins are off. Jolla might the more elaborate textures of spin-off, then restore the abandoned project MeeGo with Intel?And finally (and more imaginatively) to ' the Trojan horse '? Ever since Elop joined Nokia from Microsoft in September 2010 was talking about a secret role to) make the company dependent on Microsoft, b) break down its economic value and thus c) get Microsoft cell division through a buy-out. All three have made, but Elop will never clean? We doubt it.
