Software vendor Microsoft will gain from the $7.4 billion Nokia phone business acquisition in multiple ways.
Strategy Analytics says the multi-billion acquisition of Nokia’s devices and services business sends a strong statement of ambition to the industry that Microsoft is pulling no punches in its renewed vigor to push into the mobile industry.
Microsoft’s own cloud computing offers and the strong following enjoyed by Skype will support the acquisition. App developer sentiment is also shifting in Windows Phone’s favor.
Strategy Analytics suggests that Microsoft needs to improve its assets and offerings in areas related to social and mobile payment.
Though Microsoft has leadership positions in cloud computing and strengths in communication and search & advertising, the software giant is weak in social aspect, and it’s almost complete absence from mobile payment, the telecom analysis report said.
Nitesh Patel, director at Strategy Analytics, said that it’s clear that Microsoft is leading in cloud computing and productivity, and is strong in communication through its Live legacies and Skype acquisition. It also enjoys a dedicated following in the gaming community, and though its advertising business pales in comparison to Google’s, it is ahead of Apple in that regard.
The acquisition of Nokia gives Microsoft a boost in hardware, but a new challenge for Microsoft is integrating the new assets gained through the deal while, building on its position as the 3rd mobile ecosystem.
If the integration is managed well, the addition of Nokia’s services such as its app developer program, imaging applications and music services will give Microsoft a boost.
A long term strategic partnership with HERE will bolster the mapping capabilities, though there is potential for consumer and advertiser confusion with HERE Maps being offered alongside Bing Maps.
However, in the key apps battleground, while Microsoft remains clearly behind Android and iOS, developer sentiment is growing for Windows Phone with 32 percent of mobile app developers intending to support the platform in the coming year.
