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Dinosaur eats the small dinosaur – why did Microsoft buy Nokia?

When Microsoft announced that they will buy productions phones from Nokia world held its breath. It was so unbelievable and unexpected. This procedure has both supporters and opponents. It is hard to determine on which side tilts the scales. The most interesting of the entire mechanism are the conditions which had guided these two companies. 

I will try to analyze some facts and information that circulate through the network. In the network you can find a statement that if Microsoft buys BlackBerry then they will be able to open the museum. However, there is method in this madness. There is no denying that both Nokia and Microsoft have big problems. And their situations are very similar. Both companies were once giants in their field, not to say – monopolists. In the ’90s and even the first few years of the twenty-first century, the Nokia absolutely ruled on the mobile phone market. Microsoft had the same position when it comes to operating systems. Although the acquisition of Nokia it might seem surprising that when you lay many elements into the whole image, it is thought-out strategy. Microsoft’s strategy may finally a little dethrone Apple and Google on the mobile market.

No wonder, that Steve Ballmer was not coped with the kick up from the mobile market. Accustomed to success built on one operating system, being a financier, Ballmer simply did not sense that he had to change. Perhaps – like many businessmen – he simply afraid to change the situation and instead face it, he preferred to forgive. Therefore, when finally it was announced that he is retiring, the shareholders greeted the news with enthusiasm. Unofficially it was said, moreover, that it shareholders – worried about the fate of Microsoft – Ballmer insisted on the question of leave.

But Ballmer goes away, and his place will be … well, we still do not know who. But in 90 percent, the publication of today’s acquisition points to Stephen Elop – the former CEO of Nokia – as a person who will be the next CEO of Microsoft. This would fit into the overall concept of MS, according to which the company has become a “producer of services and equipment”. Microsoft announced its “big reorganization” in July.

All these moves, both the Nokia and Microsoft, make up one whole: the famous manufacturer of Windows, and probably its management and shareholders, figured out that on the same system sold for stationary equipment they will not manage to live much longer. The struggle for individual customers moved there, where Windows does not mean anything – to mobile devices.

Evidently, someone has to replace Ballmer.

You can laugh, that the blind will try to lead the lame, but the truth is that Microsoft does not have other option than to bet everything on one card. Other companies – like HTC and Huawei – from the beginning wanted to cooperate with a company from Redmond, but the romance quickly ended. For Microsoft does not exist, except for Nokia, equipment manufacturer that would be favourable for them. The acquisition of Nokia will probably help MS to produce a well-integrated system with specific smartphones, it is easier to develop new solution and sell it with your own smartphone.

Microsoft plans to open a database center in Finland. It has to serve both companies and “customers in Europe”. Given the fact that from 2015 Microsoft will be able to use the brand in the production of Nokia smartphones, you can safely assume that one of the markets to conquer these phones will be simply Europe – which for the Finnish manufacturer has just sentiment and sympathy for the brand.