On February 11, 2011, Nokia and Microsoft announced a joint venture regarding their future developmental strategies. Nokia is considered one of the best mobile hardware makers in the world. The company’s devices are famous for their excellent screen, high resolution cameras and other high end hardware designs. The Nokia products with their attractive, well designed and durable hardware designs can easily be compared with the other companies like Samsung, LG etc.

The only visible problem with Nokia is that the software installed by the company does not share the same standards as its hardware. While the present day smart phones have already been converted into pocket computers, Nokia devices seem to have fallen behind. This sentiment was shared by the CEO of Nokia, who confirmed the failure of the company to develop software that would come close to smart phones of other companies.  While Nokia was trying o develop its software standards, Andriod became very popular in less than two years. This made Nokia lose its leadership position in smart phone sales and proved to be a matter of concern.

Nokia therefore needed a very bold and productive move in the region of software technicalities to regain its top spot as a mobile leader. Joining hands with Windows Phone 7 was the best chance for Nokia to regain lost ground in the mobile industry. There are, however, some challenges that both Nokia and Microsoft are sure to face with this joint venture.

Prior to making a deal with Microsoft, Nokia was also in talks with Google in search of a platform for itself. Since Nokia already is working with an open source in Symbian so Google Andriod which also is an open source, should have served as the perfect platform for Nokia. It remains to be seen whether the partnership between Microsoft and Nokia will actually help in building the reputation of both the companies. Nokia has the largest customer base in Europe. Microsoft may have seen this to be a good opportunity to increase its market share in the region.