Microsoft’s Billion-Dollar Nokia Deal

What does a

billion dollars buy you?

If you’re

Microsoft, it apparently buys you a new manufacturing partner. According to a March

7 Bloomberg report, itself quoting two unnamed sources “with knowledge of

the terms,” the company plans on paying Nokia more than $1 billion over five

years to manufacture handsets running Windows Phone 7.

In return,

Nokia apparently plans on paying Microsoft a license fee for every copy of

Windows Phone 7 installed on a smartphone. A final contract remains to be

signed, however, and some additional payment-structure details may emerge in

the meantime.

The

partnership between the two tech behemoths will almost certainly alter the

mobile landscape in coming years. However, some analysts have expressed

reservations over the combined companies’ ability to execute in a way that will

actually reap benefits.

“If Nokia

wanted to leave mobile-operating-system development to another company, IHS

thinks Google Inc. and its Android software would have been a better choice,”

William Kidd, an analyst with IHS iSuppli, wrote in a Feb. 14 research note.

“Nokia could have reaped many of the benefits it expects with the Microsoft

relationship from either Google or Microsoft. But clearly, the unspecified

billions in Microsoft cash payments were an important motivating factor in

entering into the deal.”

For more, read the eWEEK article: Microsoft’s $1 Billion Nokia Deal Good for Global, Maybe Not in U.S..

CIO Insight Staff
CIO Insight Staff
CIO Insight offers thought leadership and best practices in the IT security and management industry while providing expert recommendations on software solutions for IT leaders. It is the trusted resource for security professionals who need network monitoring technology and solutions to maintain regulatory compliance for their teams and organizations.

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