Divided we fall
Last Friday's leak has proved pretty accurate as today Nokia and Yahoo announced a strategic alliance to help each other out with web services.
On one level, this is designed to help the two companies in markets where they're struggling: Nokia in the US and Yahoo in mobile Internet. More specifically, Nokia will be exclusive global provider of Yahoo's maps, while Yahoo will become the exclusive global provider of Ovi Mail and Ovi Chat.
"We're enabling millions of Yahoo! customers in key markets including North America to discover the unique capabilities that Ovi Maps brings," said Olli-Pekka Kallasvuo, CEOof Nokia. "Similarly, Yahoo!'s online expertise will bring exciting mail and messaging enhancements to millions of Ovi Mail customers across almost every country around the world, many of whom will have their first Internet experience on their mobile."
"What a combination," said Carol Bartz, CEO, Yahoo. "We're excited to expand the reach of our best-in-class Mail and Messenger services, bringing personalized experiences to more people across the mobile web, particularly in emerging markets where we are seeding the next generation of Yahoo! users. At the same time, we believe Nokia's strength and continued investment in maps and navigation will greatly enhance our existing products, enabling us to focus on areas that are core to our business."
This alliance is quite reminiscent of the Yahoo/Microsoft deal, which allowed two companies struggling to get search market share combine their resources. In fact, it's starting to look like Microsoft, Intel, Nokia and Yahoo are forming a loose cabal designed to help them all compete with the runaway mobile Internet leaders: Apple and Google.
Whether this sort of corporate chumminess can produce sufficiently coherent products, services and brands to take on Apple and Google remains to be seen, but they've probably got a better chance together than they have apart. Furthermore, as the quotes imply, the two companies seem to have emerging markets in mind with this move.
