Kaustubh
Member • Sep 2, 2013
Microsoft - Nokia Acquisition : Is It The Game Plan To Fight Apple & Google?
It's a big news day! Microsoft has decided to acquire Nokia's Devices & Services business and get full control of Nokia's patents and mapping services. Nokia, through a press released informed the media that the board of directors of both Microsoft Corporation and Nokia Corporation have agreed on the transaction in which Microsoft will purchase substantially all of Nokia's Devices & Services business, its patents and mapping services for a cool EUR 5.44 billion in cash. Out of the total bill, EUR 3.79 billion will go to the business and EUR 1.65 billion will go to Nokia's patents and mapping services. The transaction is expected to be finalised by the Q1 of 2014. The deal will have to be approved by Nokia's shareholders and require regulatory approvals.
32,000 of Nokia's employees will transfer to Microsoft. Microsoft will also get full control of Nokia's ASHA phone series (which does not run Windows operating system) and HERE mapping service. The brand 'Nokia' will continue. Nokia itself will continue to work on mapping services, advance LTE networks and other advance technologies. The company will also explore newer business opportunities. Nokia's acquisition also means its CEO, Stephan Elop will step down from his position. It's not clear what's next role for him - at Nokia or at Microsoft.
Why Microsoft Acquired Nokia?
Short answer: Hardware control!
Long Answer: Nokia has so far been the biggest hardware maker for the Windows Operating System - an important partner for Microsoft to continue to thrive in the world dominated by Apple's iOS and Google's Android Operating Systems. Both these Microsoft's biggest rivals in the mobile computing have full ownership of the hardware. Apple's been in total control of their hardware since beginning and Google realised that they need a control over hardware much later. That resulted into Google's acquisition of Motorola's mobile division. With the hardware manufacturing process in their check, Apple and Google now control every aspect of their phone and that's a huge advantage in deciding which course software development will take with the continuous improvement in the hardware. Microsoft so far did not have this ability and no other acquisition would have been as easier as Nokia.
The deal works out in favor of Nokia as well. The company, which once dominated the feature phone markets globally couldn't cope up with the assault from the smartphone makers like Apple, Samsung and LG. They got out-innovated in almost every aspect of the mobile computing game. By deciding to sell hardware business to Microsoft, Nokia can go back to drawing boards and find out their niche.
Other potential acquisition could have been Blackberry - but the company's been allergic to Microsoft's operating systems. The company's been looking for buyers but haven't been able to find a suitable mate.
What Does Microsoft's Nokia Acquisition Mean To The Industry?
The industry has been noticing innovations in the mobile computing domain at a breakneck speed. The overall winner in the game will be the company that offers the best overall experience of mobile computing. It'd be interesting to see how Microsoft makes use of Nokia's hardware capabilities to redefine Windows mobile experience. We'd expect the acquisition will put Microsoft in a better position to get more market share for the Windows operating systems.
What does all of this mean to you? 2014 and especially 2015 are going to be very interesting years. You better be prepared!
Source: #-Link-Snipped-#
32,000 of Nokia's employees will transfer to Microsoft. Microsoft will also get full control of Nokia's ASHA phone series (which does not run Windows operating system) and HERE mapping service. The brand 'Nokia' will continue. Nokia itself will continue to work on mapping services, advance LTE networks and other advance technologies. The company will also explore newer business opportunities. Nokia's acquisition also means its CEO, Stephan Elop will step down from his position. It's not clear what's next role for him - at Nokia or at Microsoft.
Why Microsoft Acquired Nokia?
Short answer: Hardware control!
Long Answer: Nokia has so far been the biggest hardware maker for the Windows Operating System - an important partner for Microsoft to continue to thrive in the world dominated by Apple's iOS and Google's Android Operating Systems. Both these Microsoft's biggest rivals in the mobile computing have full ownership of the hardware. Apple's been in total control of their hardware since beginning and Google realised that they need a control over hardware much later. That resulted into Google's acquisition of Motorola's mobile division. With the hardware manufacturing process in their check, Apple and Google now control every aspect of their phone and that's a huge advantage in deciding which course software development will take with the continuous improvement in the hardware. Microsoft so far did not have this ability and no other acquisition would have been as easier as Nokia.
The deal works out in favor of Nokia as well. The company, which once dominated the feature phone markets globally couldn't cope up with the assault from the smartphone makers like Apple, Samsung and LG. They got out-innovated in almost every aspect of the mobile computing game. By deciding to sell hardware business to Microsoft, Nokia can go back to drawing boards and find out their niche.
Other potential acquisition could have been Blackberry - but the company's been allergic to Microsoft's operating systems. The company's been looking for buyers but haven't been able to find a suitable mate.
What Does Microsoft's Nokia Acquisition Mean To The Industry?
The industry has been noticing innovations in the mobile computing domain at a breakneck speed. The overall winner in the game will be the company that offers the best overall experience of mobile computing. It'd be interesting to see how Microsoft makes use of Nokia's hardware capabilities to redefine Windows mobile experience. We'd expect the acquisition will put Microsoft in a better position to get more market share for the Windows operating systems.
What does all of this mean to you? 2014 and especially 2015 are going to be very interesting years. You better be prepared!
Source: #-Link-Snipped-#
