It’s so interesting watching all of these big corporates go through the 10 signs of failure. Buying other companies is just one of them and the latest big buyout is Microsoft buying Nokia. The £5B buyout sees Nokia hand over its mobile handset business, use of its brand name, licensing of its patents and lastly use of the Nokia mapping software on its handsets. After a long collaboration it almost seems the natural way forward for the 2 companies who have both seen better years. Microsoft of course are the software and operating system giant who have been hit hard in recent years, not only by the cloud era but by the shift from the desktop to mobile and all the new operating system options that has brought with it. Nokia on the other hand has been in decline for almost the past 10 years, tumbling from the largest and most successful mobile phone operator to a company who has struggled to compete in the smartphone era. Nokia handset sales fell more than 25% from last year alone and whilst Microsoft have pushed their new Windows phone and windows 8 range of operating systems hard, they have seen a relatively slow growth in sales too. The tighter integration should see both companies more able to tackle the mobile world.
So what do we think?
Well we still thin Microsoft has a really confusing strategy that has completely ignored its core in the mobile world in terms of the rugged operating system. We don’t thin well be seeing a rugged PDA by Nokia any time soon! However in the smartphone world thin this will be a last roll of the dice before Steve Balmer retires form the company he co-founded. What does this mean for companies lie HTC, LG and ones stuck in the middle? Were not sure but with all the major mobile companies now able to manufacturer their own handsets it can’t mean the future is going to be rosy for those without an operating system. The rugged and mobile blog www.ruggedandmobile.com