Microsoft, Nokia create alliance against RIM

Microsoft and Nokia have teamed up to try and compete with Research In Motion. The partners plan to add Microsoft Office to select Nokia handsets, the companies said in a joint statement.

Despite Microsoft serving as the largest software maker, and Nokia, the No. 1 mobile phone maker in the world, having to team up to compete with RIM is an interesting sign of the times.  RIM’s software, used on its BlackBerry line of smartphones, remains popular among enterprise users, and has outclassed most competition.  To make matters worse, both Microsoft and Nokia must deal with added competition from Google’s Android mobile OS, the Apple iPhone and the Palm WebOS.

Nokia aims to snatch users away from RIM, while Microsoft hopes its newest Office — available next year — will be widely used on PCs, mobile phones, and the Internet.  The alliance between the two companies will begin in early 2010, with the Nokia E-series phones that are aimed at enterprise users.

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Both companies say it’s all about expanding the mobile business, making it easier for employees to increase their productivity while on the go.  I’ve watched the mobile sector closely, especially in the enterprise market. Software makers continue to create alliances and partnerships with hardware makers.  Nokia and its Symbian OS, despite competing directly with Windows Mobile, won’t be in play here, as the companies are focused on simply competing with RIM.

Microsoft and Nokia are both severely struggling in the mobile OS market, with RIM controlling the enterprise software market.  Nokia is currently revamping Symbian into a more modern OS, as Microsoft also tweaks its Windows Mobile OS to better compete with other operating systems.

I’m curious how RIM will respond to this recently announced partnership between Microsoft and Nokia.  Although Apple continues to have impressive software growth, the iPhone has not been a popular choice for the enterprise sector for quite some time.  RIM is in a position where it doesn’t need any additional partnerships at the moment, and will likely sit back and see what Microsoft and Nokia do in early 2010.