Why Microsoft really bought Nokia


hi-nokia-elop-ballmer
This column, the obvious post on Microsoft buying most of Nokia, is arriving later than I had hoped because we had an Internet failure today at our house on the side of a mountain in Sonoma County near Santa Rosa. We’re 15 minutes from town but the terrain is such that there’s no cellphone service from any carrier, we’re beyond the reach of DSL, there is no cable TV, so our only choices for Internet access are crappy satellite Internet or non-crappy  fixed wireless, which we get from an ISP called CDS1.net. That connection is really good since the ISP’s tower in this part of the county is about 200 feet from my office window.  It’s […]

Burning the ships at Nokia

When John Sculley forced Steve Jobs out of Apple back in 1985, the former PepsiCo marketing executive very quickly produced dramatic improvements in Apple’s profitability.  Apple wasn’t losing money before, but Sculley improved the bottom line by about $200 million (a lot in those days) simply by cutting all of Steve Jobs’s pet projects that appeared to have poor prospects. Sculley raised profits by cutting expenses not by increasing sales. Expect the same thing at Nokia where, ignoring for the moment the “enormous payments” Microsoft will be making according to Nokia CEO Stephen Elop, the company can probably cut its software development budget to near-zero, saving $1 billion or more and increasing profits by that […]

By |February 14th, 2011|2011|86 Comments

Rushing the net: Nokia's coming fight to the Finnish

Nokia today announced that the Finnish cellphone company is choosing Windows 7 Phone as the operating system for its future smart phones. It’s not a surprising move given that Nokia CEO Stephen Elop came from Microsoft and it’s not even that risky a move given that the alternative was a slow but certain death for Nokia smart phones running Symbian and Meego. Sure Nokia could have gone with Android, but Google has less at risk than Microsoft so Redmond had much more to offer. The only real question here is whether Nokia can make the new strategy a success?  I think they can, but there is only one way to do it — by rushing […]

By |February 11th, 2011|2011|105 Comments

Mobile 2010 Predictions: Apple, Google & RIM, Oh My!

Near the eve of Apple’s tablet announcement, I’d like to turn my 2010 predictive eye again to the mobile space where, as my title suggests, there are only three software players that matter — Apple, Google, and RIM (Blackberry).

But wait a minute, isn’t Nokia the big Kahuna in this space and aren’t they right now suing the heck out of Apple? Yes, but that’s an act of desperation, a stalling tactic intended just to slow Apple down or, possibly, send some useful license revenue from Cupertino to Finland. It doesn’t change the inevitable.

So-called “feature phones” are going away, to be replaced within two product cycles (three years, tops) entirely by smart phones […]

By |January 22nd, 2010|2010|152 Comments