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In memoriam: Microsoft’s previous strategic mobile partners

Microsoft’s new “strategic partnership” with Nokia is not its first. For a decade the software company has courted and consummated relationships with a variety of companies in mobile and telecom. Here are the ones I can remember:

  • LG. In February 2009 Microsoft Corp. signed a multiyear agreement for Windows Mobile to be included on devices from LG Electronics Inc. LG would use Windows Mobile as its “primary platform” for smartphones and produce about 50 models running the software.

What happened? LG made a few Windows Mobile devices but with WinMo uncompetitive, they abandoned the platform and moved to Android losing years of market presence and all their profits.

  • Motorola. In September 2003, Motorola  and Microsoft announced an alliance. “Starting with the introduction of the new Motorola MPx200 mobile phone with Microsoft Windows Mobile software, the companies will collaborate on a series of Smartphone and Pocket PC wireless devices designed to create a virtual “remote control” for the Web-centric, work-centric, always-on-the-go mobile professional.” In addition, the alliance includes cooperation on joint marketing and wireless developer programs.

What happened? Motorola launched a series of Windows Mobile phones culminating in the Motorola Q “Blackberry killer”. As Motorola hit the rocks in profitability new management reached for the Android liferaft. The company now relies exclusively on the Droid franchise.

  • Palm. In September 2005 Palm and Microsoft announced a strategic alliance to “accelerate the Smartphone market segment with a new device for mobile professionals and businesses. Palm has licensed the Microsoft Windows Mobile operating system for an expanded line of Treo Smartphones, the first of which will be available on Verizon Wireless’ national wireless broadband network.”

What happened? Palm shipped a few Windows Mobile, famously dismissing Apple’s potential entry as something “PC guys” could never achieve. A new CEO, a private placement and an acquisition later the company is a division of HP making its own operating system.

  • Nortel. When Steve Ballmer was famously laughing at the iPhone and saying that he likes the Windows Mobile strategy “a lot” he was sitting next to the then-CEO of Nortel (Mike Zafirovski formerly of Motorola) with whom the company had just closed a strategic deal.  ”an alliance between Microsoft and Nortel announced in July 2006 …  includes three new joint solutions to dramatically improve business communications by breaking down the barriers between voice, e-mail, instant messaging, multimedia conferencing and other forms of communication”.

What happened? Nortel declared bankruptcy two years later.

  • Verizon. In January 2009 “Verizon Wireless has selected Microsoft Corp. to provide portal, local and Internet search as well as mobile advertising services to customers on its devices. The five-year agreement will go into effect in the first half of 2009 when Microsoft Live Search is targeted to be available on new Verizon Wireless feature phones and smartphones.” The deal would ensure Bing distribution to all of Verizon’s smartphone customers.

What happened? Bing did ship on some devices but in October 2009 Droid came to Verizon.

  • Ericsson. In September 2000, “Ericsson and Microsoft Corp. today launched Ericsson Microsoft Mobile Venture AB. This previously announced joint company will drive the mobile Internet by developing and marketing mobile e-mail solutions for operators. The first solutions are expected to be on the market by the end of the year. The company is part of a broader strategic alliance between Ericsson and Microsoft”

What happened? Ericsson divested itself of the mobile division forming a joint venture which would go on and make more strategic alliances with Microsoft over Windows Mobile culminating in a loss of profits and eventual flight to Android.

  • Sendo. In February 2001, Microsoft announced a partnership, in which Microsoft bought $12m of Sendo shares and a seat on the board. Sendo was to be Microsoft’s “go to market partner” for the Stinger smartphone platform that would become Smartphone 2002.

What happened? Sendo after litigating IP issues with Microsoft went bankrupt in 2005.

And finally,

  • Nokia. No, not this OS deal, but in August 2009 ”The worldwide leader in software and the world’s largest smartphone manufacturer have entered into an alliance that is set to deliver a groundbreaking, enterprise-grade solution for mobile productivity. Today, Microsoft Business Division President Stephen Elop and Nokia’s Executive Vice President for Devices Kai Öistämö announced the agreement, outlining a shared vision for the future of mobile productivity. This is the first time that either company has embarked on an alliance of this scope and nature.”

The plan was to bring “Microsoft Office Mobile and Microsoft business communications, collaboration and device management software to Nokia’s Symbian devices.”

What happened? One and a half years later the same Stephen Elop announced that Symbian will be deprecated.

  • Youri

    To Symbian nostalgics…
    I own a Nokia Nuron phone. Symbian is not a good OS.
    Sometimes in vibrate mode it does not vibrate. It turns off on its own. Sometimes it does not change orientation when I flip it over. The newest OS update (with no release not) added lag to Doodle Jump. Another update broke mail for exchange; the only fix (from the community) was to reinitialize the phone completely. Customer support on Nokia forums is inexistent.
    The phone is smaller and cheaper than a WIndows Phone and the data plan is $10/month. That's the only thing it has going for it, but I think I'm getting a WP7 anyway.
    Windows Phone is shipping now; Nokia would need months to get Meego ready for shipping. And then it would be a V1 product.
    The whole list is a joke. How many companies did *not* partner with Microsoft and go bust?
    Why does it have to always be Microsoft's fault? I remember in the Pocket PC days, Pocket PC devices suched until HP released the superb IPaq. I am sure the partnership worked well for them. Play for Sure improved interoperability with Windows, but it was hardware vendors' job to build exciting devices. Did they?

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  • http://twitter.com/sigmundur @sigmundur

    Orange

  • GlobalMobulMoghul

    Hey – what about Dell ? – they had PDA's called "Axim" running Windows CE (I think) – I had one for a while, seemed to work o.k. as long as I didn't try to do any actual work on it – at which point it would choke !

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  • steffen_jobs

    microkia is d.o.a.

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  • Michael

    Sidekick? So strategic that Microsoft acquired them.

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  • Ziad Fazel

    I wonder how much Microsoft paid for the access to RIM Blackberry devices, and how Nokia feels about Microsoft collaborating with RIM at the OS level, deeper than providing apps.
    http://news.cnet.com/8301-30686_3-20059271-266.ht

  • Skeptic

    Generally speaking, it’s very interesting how a powerful dominant company can suck in everything it wants from a captive business partner without having to go through a costly acquisition that may be too difficult or impossible due to various regulatory hurdles. This captive disabling “blood sucking” business strategy seems to work well in practice.

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  • http://www.ringcentral.com/voicemail/index.html Voicemail Number

    Elop is the 7th largest individual microsoft shareholder (according to Finnish newspaper today)

    Seriously, they announced EOL for Symbian, who is going to start development now? Those 150M new sales (dreaming imho) are just there to be switched to WP7, Nokias position is very clear, they are not a partner, but a Microsoft division now. Qt stands for cross platform, you’re a means to an end to convert Symbian users to WP7 but they’d like nothing more than for Qt to go away.

    The whole show with Balmer and the vomit worthy “Steve and Stephen” was a disgrace. I’d like to be optimistic, but I remember the “Qt all the way” chanting not too long ago all too well.

    I am so sorry for what is happening. Qt is such an awesome codebase and its people are the best.

    • http://www.facebook.com/badescuga Alex Badescu

      lol symbian doesn’t even allow i-app video playback. my company made an app and actually had to wait for symbian to get a new version (waited for several months) and it still didn’t work.

      symbian was a crappy platform. If you don’t believe me, take a symbian device with a 1ghz processor (more then decent for a symbian device) and see how it works compared with a windows phone 7.x device running same hardware.

  • berult

    In Memoriam: Microsoft’s old strategic nemesis: Steve Jobs;

    Entre mille poètes du dit et de l’écrit, du rêve et de l’ennui, s’ingère le rare poète de la forme du non-dit.
    Je ne suis qu’un prétendu poète entre mille,  il fut …toujours que dis-je, l’ascète du mille contre un pour le pari…

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  • http://www.facebook.com/Setok Kristoffer Lawson

    Missing Silicon Graphics

  • Walt French

    Maybe more of a curiosity than a real partnership, but there’s also,

    REDMOND, Wash — Sept. 28, 2011 — Microsoft announced today that it has signed a definitive agreement with Samsung Electronics Co. Ltd., to cross-license the patent portfolios of both companies … Under the terms of the agreement, Microsoft will receive royalties for Samsung’s mobile phones and tablets running the Android mobile platform. In addition, the companies agreed to cooperate in the development and marketing of Windows Phone.

    (Emphasis added.)

    • http://www.asymco.com Horace Dediu

      I tried to list the so-called “strategic partnerships”. The royalty agreements Microsoft has with Android phone makers are more common and not usually titled as “strategic”.

      • Walt French

        Well, it was the “development and marketing of Windows Phone” that I find interesting.

  • JohnJohnson1

    Symbian is old and crappy but I don’t see how WP7/8 is better. Nokia can’t even customize it and implement all UI goodies they traditionally had in other systems. In fact I consider WP7/8 a complete crapwreck.

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  • wazmo

    Samsung saw the writing on the wall and decided to cover all of their bases-the ATIV series of WP8 smartphones are non-existant in the US and barely have any penetration in their other markets. Even the Samsung exec’s downplayed the WP8 platform just a few months after they released their flagshsip WP8 device.

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  • William

    Moral of the story.

    Microsoft has grown complacent with it’s 95% monopoly, thus fooling themselves that everyone loves windows, otherwise why would 95% of global OS’s be based on Windows.

    Then came iOS and Android.

    And now Windows accounts for 35% of the worlds OS’s.

    Ballmer still doesn’t understand, and worst of all, he proceeds to make Windows 8 like the failed Windows phone, in some insane belief that’s going to make Microsoft into the next Apple/Samsung because hey, everyone just LOVES windows, right?

  • mistermysteryguest

    The Nokia/Microsoft partnership is the walking dead.

  • http://www.facebook.com/people/Steven-Zahl/1670371040 Steven Zahl

    Market has Spoken.

    People hate Tiles.

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