Nokia and Microsoft

Five years ago, Nokia and Microsoft make a Pact: who wants dethroned world market leader with Windows phone back to the top and Steve Ballmer to fulfill his dream of the device company.

“Hello there.”

“We are on a burning platform.”

Stephen Elop is concerned. For nearly five months, the Canadians now is Chief of Nokia, the largest mobile phone manufacturers in the world and leader in smartphones. Elop is the first foreigner at the helm of the Finnish world group. He was among other things brought to confront the self-satisfied Finns with the bitter reality: the competition has long since set to overtake. If Nokia will not fundamentally change, it’s over with the top of the world.

On February 9, 2011, Elops gets famous memo in the press. For his speech to employees, which was published in the internal corporate blog, Elop selects the image of the burning rig. At Nokia eats the fire at every nook and corner. The once unassailable mobile phone giant is besieged by new competitors. With the iPhone, Apple has redefined the Smartphone, the “Finnish patient” has nothing equivalent to counter. 2010 explode the market share of Android: Google’s system is in the fast lane.

It remains Elop nothing left other than to jump.

Below is Steve Ballmer.

The two know each other from Microsoft. Prior to his engagement with Nokia, Elop two years the business had launched Division of the software giant. As CEO Elop also CEO Ballmer has a huge problem: Windows Mobile is no competitive Smartphone platform more. “We have missed a round,” says Ballmer and is still hopeful to be back in the next. With Windows phone, he puts everything on one card.

Two days after the memo’s then official: Ballmer and Elop make a Pact. The two want to establish Windows phone as third ‘ecosystem’. Nokia wants to attack again to Android and iOS. From the market leader as a partner, Microsoft hoped for fast high numbers for bordering the perceptibility of Windows phone puttering around. “Win-Win” call manager. It should not confirm for both.

“There are now three horses in the race,” said Elop.

The competition is unimpressed. “Long time no Eagle revealed two Truter” blasphemes Google manager Vic Gundotra on Twitter. (As the father of the presented a few months later Google + he is expert for lame ducks.) Gundotras mockery is a comeback on Nokia Deputy Chairman Anssi Vanjoki, 2005 so was commenting on the takeover of the company Siemens mobile Division by BenQ. At that time, Nokia is still King.

For Windows phone, Elop is the MeeGo with Intel developed, his predecessor at the Mobile World Congress a year previously had chosen to Symbian-alternative for the Smartphone upper class. The popular with fans, but available only in a few countries Nokia N9 is the only witness of this short episode. However, the attractive design of the N9 is the next generation.

In October 2011, Nokia introduces its first Windows phone: the Lumia 800.

Actually, it initially looked as the deal with Nokia could provide more reach the Windows phone operating system. Some of the big manufacturers had – brought own Windows phones on the market probably also out of loyalty to Microsoft – end of 2010: Samsung, LG, Dell. HTC, which has benefited from the Android boom and had his best time, brought several 2010 and 2011 the same models on the market.

The Lumias made it after all, 2011 from 1.7 million sold units in the third quarter to bring Windows phone on some 2.7 million in the two following quarters. For the eco-system, this was a considerable leap forward, but the competition was good long: for the last quarter of 2011 are androids 75 million and 37 million iPhones in the statistics. Trend: Steep upward.

Nokia has sold there at least 17 million Symbian Smartphones. Elop keeps the system not for fit for the future. With Windows phone, it is faster on the market than with a lengthy in-house development. At the beginning of market researchers trust a market share of 20 percent by 2015 to the system. You are not right. Sales of Windows phone is 2012 while twice as fast as the overall market, but growing Android also.

Ballmer’s vision

As in Nokia getting slowly cold feet and 2013 first rumors about an Android Smartphone making the rounds of the Finns, Ballmer sees only a rescue for his vision of Microsoft as a platform operators and equipment manufacturers: he buys Nokia’s mobile phone Division for 5.5 billion euros. It is his last big deal. Ten days before he announced his retirement. When the deal is finally completed, i.e. the CEO Satya Nadella. And has a totally different idea of Microsoft.

As–as an insider called it “Buddy deal” between Ballmer and Elop shows not the desired effect, brings Nadella. Microsoft 18,000 jobs breaks down, two-thirds of them in the Mobile Division. A year later the CEO draws a line under the Finnish adventure: Microsoft writes off$ 7.6 billion, cut thousands more jobs. Even Stephen Elop have left the company.

“Hello there.”

Elop leaves a mess. Not alone is his fault. Also his predecessor Olli Pekka Kallasvuo and Jorma Ollila, who had brought as Chairman Elop to Nokia, have their share of the decline.

Nokianern remains the memory of a boss who is not the right tone at the decisive moment. Elop begins his “burning platform” with “Hello there”. With “Hello there”, he begins the chatty memo, in which he 12,500 Nokianern States at the very end, they lose their jobs. Not only for the financial times, this is a “prime example” how one should not write, think, and lead a company.

It goes to Nokia, Microsoft and Windows phone in the #heiseshow on Thursday afternoon at 16:00 live on heise online. (vbr)

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