A comprehensive analysis of Microsoft's Nokia deals

Source: Internet
Author: User
Keywords Nokia Microsoft mergers and acquisitions
US tech blog Engadget published in Friday titled "What do You need to know about Microsoft's acquisition of Nokia" (What you need to know about Microsoft ' s acquisition of Nokia) The reasons and effects of Microsoft's acquisition of Nokia Equipment and services were elaborated in detail. The main content of the article: Nokia is not born as a handset manufacturer, before entering the mobile communications industry, it has produced paper products, boots, rubber. Today, the 7 billion-dollar deal between Nokia and Microsoft is officially completed, and Nokia's equipment and services sector will be reborn as part of Microsoft's future. However, it is difficult to know what kind of change this strange marriage will bring. All two companies refused to disclose the information. However, the merger is only a start, and there is still a long way to go in order to be truly integrated. Even in the future after a few months of trading, we are still likely to ask questions, but as executives on both sides say, these processes take a while to one by one. So now, what do we need to know about the merger? Acquisition content Microsoft has acquired Nokia's equipment and services business, which includes both smart devices and mobile devices. In other words, Lumia, Asha and X-series phones will all be owned by Microsoft. The design team, supply chain, accessories, employees, developer relationships and most of Nokia's manufacturing plants and testing facilities will also be included in Microsoft's, MixRadio, store and most other services. As an independent business, Nokia's here Map service is not covered by the deal, but Microsoft has agreed to sign a 10-year licensing agreement on the business. In addition, Nokia will retain the solution with the network department, the CTO office and a large number of patents. Microsoft will also control intellectual property and Third-party contracts related to Nokia devices. Symbian is the same, as does Nokia's partnership with Qualcomm and other chip companies. Nokia's imaging talent will also be grouped under Microsoft's umbrella. Because Microsoft acquired the brand ownership of Lumia and Asha, the company could use these brands for the time being. Nokia's planned products will still be available in the next few months, unless Microsoft decides to give up some of its products. A real Microsoft phone may have to wait at least another 10 months before it can be released, because it usually takes a long time to complete the development process. Elop, the Nokia President and CEO, will be executive vice president of Microsoft Equipment Group and will report directly to Microsoft CEO Satia Nadra (Satya Nadella). His new position is in charge of all Microsoft hardware products: mobile phones, tablets, Surface, Xbox, sensory pixel products, and even accessories. In addition, 25,000 Nokia employees will join Microsoft. Trading reasons Microsoft and Nokia have launched a closeCooperation, but still operate independently. Even if the two sides often cooperate, the development process still varies. They have their own resources, tools, cultural and trade secrets, which can greatly affect efficiency. By acquiring Nokia, Microsoft can now develop firmware and hardware from the start, so theoretically, the efficiency of developing, manufacturing and distributing new handsets and tablets will increase dramatically. In addition, Microsoft believes that if you can better understand how hardware and software fit together, you can transfer this knowledge to existing partners, developers and operators. How will mobile users be affected? If you have a Nokia device, nothing will change. Your phone will not stop working inexplicably and will not explode, even if there is a problem, Microsoft will fulfill the warranty promise. Elop has repeatedly stressed in his blog that it will continue to support feature handsets, as well as Lumia, Asha and X products. Although he did not elaborate, he may mean that Microsoft will still stick to the existing new equipment and firmware update roadmap. Whether the company will deviate from the strategy in the future is another issue, but the current Nokia users should not be aware of any changes due to the acquisition. Similarly, other Windows Phone users will not see any changes. For now, there is no reason to think that Microsoft might suddenly end up cooperating with other companies on upgrades or new equipment, and instead Microsoft seems to be increasing its cooperation with other partners. How does Microsoft partners feel? Aside from the generalities, most Microsoft partners don't mention their feelings about the merger, but we suspect they may have a complex attitude. It was reported that Samsung last month in China and Google jointly told regulators that Nokia's patent licensing fees will be controlled by Microsoft: In fact, the issue of patent licensing has always been the focus of the relevant enterprises, the future is no exception. However, some companies have become the latest partners in Windows Phone, including LG, ZTE, Lenovo and some Indian handset makers, suggesting that many firms are bullish on the merger without rejecting it. Perhaps these new partners just want to launch Windows Phone, but want to wait until today's merger is complete before making a decision. After all, few of the companies mentioned above have announced specific plans, and rumours are rare. Of course, these companies are unlikely to get the same treatment as Nokia, which, after all, has been the main partner of Microsoft since 2011 when it began supporting Windows Phone platform. Future prospects Microsoft believes the future is very bright. However, the merger is always easy to say, difficult to do, often encounter layoffs, customer service and other issues, so should not be too smooth. With more details of the deal surfacing, two things will be particularly interesting. The first is the organizational question: Will Microsoft retain all 25,000 Nokia employees for a long time or will it streamline its staff? The second is device support: Although Microsoft says it will continueContinue to support the entire Nokia product portfolio, but will it eventually be abandoned because of the X series using Google's operating system? Does the Lumia have access to Windows Phone's system updates before other businesses, and can all partners be treated equally? We still have a lot of questions, and now Nokia's equipment division has become a part of Microsoft, and these questions will eventually be answered.
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