As expected, Nokia plans to use Microsoft's Windows Phone 7 operating system as part of a plan to recover from competitive failings detailed in Nokia Chief Executive Stephen Elop's "burning platform" memo.
But it's deeper than just an agreement to install the OS on Nokia's phones. Instead, the companies call it an attempt to build a "third ecosystem," acknowledging that competing with Apple's iOS and Google's Android involves a partnership that must encompass phones, developers, mobile services, partnerships with carriers, and app stores to distribute software.
"There are other mobile ecosystems. We will disrupt them. There will be challenges. We will overcome them. Success requires speed. We will be swift," Elop and Microsoft CEO Steve Ballmer said in a boldly worded open letter. "Together, we see the opportunity, and we have the will, the resources and the drive to succeed."
The companies will cooperate tightly under an agreement the companies just describe so far as proposed, not final. Under the deal, Windows Phone 7 would become Nokia's "principal" operating system, and Nokia would help Microsoft develop it and ensure a broad range of phones using it are available globally.
Nokia will use many Microsoft online services, many of which trail Google rivals, such as Bing for search and maps and AdCenter for advertisements.
When it comes to the sales part of the ecosystem, each company brings something to the deal. Microsoft phones will be able to link up with Nokia's agreements for carrier billing--a popular option in parts of the world where credit cards are less common. And Nokia will fold its own app store into the Microsoft Marketplace.
Experts view on this new partnership is the decline in popularity of the Nokia OS'. Symbian was considered as one of the most common mobile OS till the introduction of Android. Symbian did changed alot with the latest range of phones from Nokia but still wasn't able to amaze its fans. The growing popularity of Android phones was a great slash on the Nokia phones. Still, Nokia declined to make its phones Android. Instead, it created another OS named MeGo for its advanced N900. MeGo was an android type of OS and had great features but failed to gain popularity. When they knew the symbian wont work anymore, they turned to Windows instead of Android which is also another advanced OS. Though people expected Nokia to be an Android, it is now a member of Windows phones. Now we need to wait till the new Nokia Windows Phones to arrive by the fall of 2011 and the question is: Will it be enough to popularize among the world and to stop the advance of Android phones? Let's wait and find out.