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Alok's Posts / Startup

It was all about the Dowry…


Written on 22.02.2011

As the dust settles on the Nokia choice to go with the Microsoft Windows 7 operating platform (ditching their own Symbian platform), a few reports point out to why NOKIA went ahead with Microsoft:

Microsoft paid Nokia a higher sign up amount (Dowry) than Google offered them to switch to android.

Shucks.

Dowry always lands up with either the bride getting burnt or leading to a perpetual discord between the families who engaged in this shameful act.

 

IT WAS ALL ABOUT THE DOWRY

Here are a few reasons why I think Nokia has made the biggest blunder of its life: 

– Microsoft is a seriously looking like ‘a few trick Stallions’ packaged software business. Other than their OS and Office suite, nothing they have down in the Service as a Software (SAAS) model has gone anywhere.

On the other hand, the business of Smart Phones is all veering into SAAS. The Operating System has to be ‘Open Source’ to create massive innovation and third party apps (android) OR a ‘once in a galaxy’ brilliant company like Apple that has has created a massive walled garden – but that garden is EDEN and everyone wants to get inside. 

Neither Nokia nor Microsoft come near Google or Apple in their respective skills in this line of business.

– Microsoft SUCKS when it comes to Consumer Products. Look at Zune. Forget Zune – look at the Windows 7 phone.

OK – here is the bet – do you know ANYONE – and I mean ANYONE (other than a developer who has been bribed by MS) who actually OWNS a Windows 7 phone?

If you do, send me their snap (with their phone) and I will make them famous. 

How can Nokia collaborate with a Company who doesn’t understand end consumer products? 

(PS – Sure there is a Kinect and Xbox – but they are still follow up’s of Wii and Playstation respectively)

– Microsoft doesn’t understand CONSUMER ENTERTAINMENT!

Smart phones are going to follow a Pareto’s law (the 80-20 rule guy) – only 20% usage will be used to call and text – 80 % usage will be for games, videos, pure entertainment… Check your own consumption Pareto.

Google has Android, Youtube and tons of experience in creating and owning platforms that allow massive scale of consumer entertainment to be published and distributed seamlessly. 

Apple has iTunes!!!!  Even God uses Apple.

Microsoft HAS??? 

– Massive Company Culture problems

I have met lots of MS folks and they behave like pompous Beijing politicians. And the folks from Nokia are worse. 

What was needed was the humility of Google and or the perfection (sure arrogant) attitude of Apple to make Nokia a truly new age successful Company. Believe it or not – Nokia needs a partner centered in the innovation capital of the world – Silicon Valley (both Apple and Google) than frozen and disconnected Seattle (MS).

This combination looks like politicians from Beijing and Moscow are going to be camping in Siberia to figure out how to create the next Facebook. Calculate the chances yourself.

Nokia has made some of the most amazing phones ever. And that skill will never go away. They just fumbled and stumbled on the new age operating system. Google with Android and so many other hardware partners (HTC, Samsung etc) has proved beyond doubt that more than a challenger to Apple’s iTunes. And it keeps learning everyday with app providers and hardware partners upping the ante everyday.

What has Microsoft done in this space? 

Shucks I forgot – they paid the dowry. 

(Ps – these are strictly my personal views and not of the Companies I work for).

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5 Comments

  1. For the other side it looks different…if Nokia had adopted Android, making Google a bigger giant , the market would have turned bipolar…we would have to just choose btw Apple / Google… and a little BB here & there. Though this marriage is out of compulsion [read Dowry] but it has made space for another OS….being delivered out of this marriage or is Nokia buying time to develop Meego or may be some other company out of the blue.

  2. I like to disagree with you here. Zune HD and their Zune pass did make a good combination. Its just that it was late. Do we all together ridicule Sony just because they couldn’t create a killer product in the last decade? They were pioneers for a long time in consumer electronics until Apple lately arrived.

    Wndows Phone 7 is something again that cannot be discounted off, they did make a first good impression. If there was no Android, I would have got WP7 instead of IPhone. And when Samsung, Htc, Sony, Motorola went for Android, where could Nokia bring in their difference? Nokia was never known for smart phones and this could be their chance.

  3. It’s possible Microsoft offered a “dowry” for Nokia to use their OS, but I wonder any company could pay enough for a $34B company to stake their future on. So the motivation to switch must be something deeper?

    The problem Nokia has is that they’re (now) being perceived as a me-too company. Apple or Samsung/HTC/Motorlla has come out with a more innovative end-user consumer product, before Nokia has in recent years. The E71 is the last device I recall. That they embarked on sponsoring (?) the MeeGo platform indicates they acknowledged that Symbian imposed restrictions on what they could do with devices.

    MeeGo has been embraced by Intel, hinting that the priorities for a consumer device company like Nokia are side-lined in MeeGo.

    Therefore, with a toss-up between Android and Microsoft, why would Nokia choose Microsoft ?

    1 Android has become a brand in itself, something a company like Nokia cannot accept after being in a leadership position for so long?

    2 Android ‘serves’ many partners, from Motorolla, LG, Samsung, HTC. That’s going to lead to some complications down the road, unless Google is able to standardize specifications like DVDs and Blu-Rays are. So, Microsoft offers Nokia greater control.

    3 Microsoft has great development and process tools. They’ve worked with Dell, HP, and all other PC and device manufacturers to get a fair degree of reliability [ I expect many bric-bats for this comment].

    The big danger is going to be what Alok has pointed out : do they really understand how dynamic this space is, and therefore the changes they’re going to need. The big fear is, did they decide to collaborate because they are the matching, compatible couple in their 40s, when what’s going on is a rave party!

  4. Shucks – this dowry swallowed up the bride

  5. The reason I bought a samsung was because NOKIA didn’t had an android piece, I would never have thought of any other phone but the CEO of nokia had already berated samsung and LG for abandoning their own respective operating systems. And now look who followed suit and swallowed big words. Couldn’t you have gotten over your ego before ruining the brand name, loyalty and finland’s economy Mr. CEO?????????

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