What Microsoft’s Writing Down Of Nokia Really Means

Microsoft has written down the Nokia acquisition resulting in erosion of $7.6B from its books.

Satya Nadella In India
Satya Nadella In India

What does it mean? Is Satya Nadella letting go of the bigMobility space? Professor Mark Skilton who researches mobile ecosystems at Warwick Business School shares an interesting perspective:

“The mobile phone market has gone. Nadella realises this and is focusing on building integrated cloud platforms of services to ‘join up the dots’ of carriers, content and mobile devices. This is major surgery that is long overdue. Without diagnosing the failing of the Nokia technology platform investment, it’s clear Microsoft don’t have the scaling and user community to support it in a highly competitive market.

“The realignment of the Microsoft strategy is symptomatic of many large and smaller companies in 2015 looking to reposition themselves in the true digital economy. We have moved past the cloud computing, big data and social eras into a new ‘digital business’ landscape that is fully omni-channel – that is a seamless experience for the user on any device.

“This market is an estimated of $8 trillion opportunity as companies use mobiles, the internet of things and cloud networks to create a new customer experience.

“It looks like Nadella will bring a stronger focus on what Microsoft does well in its own backyard of cloud ecosystems. Many companies have similar issues and want to consolidate their IT services into a strong customer experience delivery, building ‘connected customer journeys’. What happens next for Microsoft will be critical in providing joined-up cloud and service delivery now that the ‘shop window’ – the mobile – has been tossed away.”

What’s your take?

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