12 August 2009

Nokia phones to incorporate Microsoft Office

Long-time rivals Microsoft and Nokia are joining forces to install Office software on Nokia mobile phones.

An insider disclosed the agreement to the New York Times, which is believed to be a result of the continuing threat of free online competition to Microsoft Office, specifically from Google Docs.

The alliance is expected to be announced today, but neither party has commented thus far.

As increasing numbers of internet users are favouring the convenience of smartphones as a replacement for traditional computers, Microsoft's dominance in areas of word processing and spreadsheet software is under threat, making this alliance a pragmatic decision by both companies as they face growing competition.

Independent technology analyst Rob Enderle observes: "This appears to be a case of the enemy of my enemy is my friend."

Microsoft and Nokia have been rivals in mobile phone operating systems for years, as Nokia has rejected Windows Mobile in favour of Symbian software. But it seems that the popularity of Microsoft Office has convinced Nokia to open the door slightly, allowing Microsoft to gain a greater foothold in the mobile phone world.

A previous collaboration saw Nokia incorporating Microsoft PlayReady technology into Nokia phones, enabling users to manage and receive digital content more effectively, although Nokia retains ties with Microsoft rivals Google.

Nokia is still the world's largest mobile phone manufacturer, but has been struggling in the smartphone market against competition from Apple's iPhone, Research in Motion's Blackberry and Google's Android software. By incorporating the world's most popular office software, Nokia may be able to keep up.