Microsoft’s decision to acquire Nokia’s devices and services business for almost $7.2 billion is one of the biggest acquisitions ever in the company’s history. With this move, Microsoft aims to present a unique brand in the market for Windows Phone and that is, Microsoft. Indeed, a great step towards accelerating growth this acquisition will not only strengthen overall opportunity for Microsoft in the phone market but will also make users see Microsoft beyond software and PC’s.
Nokia has also released an Infographic talking about the reinvention at Nokia and Microsoft. Looking at history of both these great companies, this acquisition could just be the right growth impetus that Microsoft would have hoped for, while for the consumers it could be a partnership that could revolutionize the phone market. Remember, it is the Microsoft and Nokia who are to be credited for putting a computer and phone on every desk today. Both are pioneers, and share a great history of innovation.
Benefits to Microsoft: Greater Opportunity
Having achieved a position of #3 in smartphones globally, acquisition will help Microsoft benefit in following ways.
Protection to Windows Phone achieved by
- High concentration with Nokia
- First party hardware ensures Windows Phone presence
- OEM model alone expensive in this market position
Going ahead smoothly
- With faster innovation
- Improved marketing through Microsoft channels
Better OEM opportunity
- Address diversity of markets
- Continue existing partnerships
- Microsoft success creates expanded OEM opportunity
Easier Patent Arrangement for Microsoft
With this acquisition, Nokia would assign Microsoft benefits under more than 60 patent licenses with third parties like Qualcomm, IBM , Motorola Mobility and Motorola Solutions to name a few. Microsoft will also get to combine the new Nokia license and these assignments with its existing patent agreements. In all Microsoft is set to enjoy most cost-effective patent arrangements for smart devices.
Benefit to consumers
The acquisition will benefit consumers as it will make Windows Phone more competitive since Microsoft would be able to cut down devices and services cost through Nokia’s existing IP licenses. At the same time consumers would have more choice and innovation coming at Windows Phone.
You can check out the slideshow released by Microsoft or download the PDF or PowerPoint presentation here.
As consumers you could just see smart phone market becoming more competitive than ever. Truly it’s a great step towards accelerating growth. Best of luck, Microsoft!