Tuesday, September 3, 2013

Microsoft's mega gamble with Nokia

Microsoft is all set to take over Nokia devices and services segment for a whooping $7 billion transaction. The struggling Finnish company has slid from its top position which it held a decade earlier. The battleground has changed drastically since then for both these companies. Earlier, when Nokia was at the helm, Microsoft too ruled the roost with it's services which was unchallenged then.

Present is very tense for Microsoft
Microsoft's dominance is sliding with the raise of Apple and Android line of smartphones and tablets. These new handheld devices have started to eat significantly into notebooks and desktop space significantly. Apps are the new buzzword for the developers and apps are breeding in iOS and android ecosystems. The software has been heading south in preference for apps. Windows 8 devices have failed to take off as expected. Lumia series from Nokia is just a silver lining as of now. Microsoft admits, rather in a veiled manner that Surface RT was a mistake. Xbox is not making great money for Microsoft. The only thing Microsoft has to contend with is it's services which has been always on a positive surge.

Even Google does not want to be everywhere
Google has been phasing out several of it's applications and services. Popular services like Google Reader too has taken a hit. Google has begun to understand that it cannot be everywhere and improvising on their expertise arena is the best way to go ahead. On the other hand Microsoft right now is trying out too many things. Apart from services, it has a bing search engine, surface line of tablets, gaming as in Xbox and finally now into the smartphone war with Nokia's acquisition.

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