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Nokia and Microsoft form “strategic alliance”. Nokia shares drop 10%

Nokia and Microsoft have announced, ahead of Nokia’s financial statement, that they will form a “broad strategic partnership” that will join Nokia’s hardware clout and international name recognition with Windows Phone 7 software.

But the markets aren’t too enthused about the deal; Nokia’s value on the Nasdaq dropped a whopping 10% following the Nokia-WinPho7 love-in.

WinPho7 is to become Nokia’s “principal smartphone strategy.” There’s plenty of cross-over from the two companies- but the word used in their collective press release is integration.

This means Nokia’s Ovi store will be ‘integrated’ (fade away?) into Microsoft Live store, while there will also be cross-over between Ovi Maps and Bing Maps.

Microsoft Office and XBox Live are also other Microsoft goodies are promised to arrive on Nokia phones.

The former Microsoft employee, now current Nokia CEO, Stephen Elop, said via Twitter, that  “Today Nokia Dives Forward.” Hopefully, that’s not a sideways mention to that ‘burning platform’ memo.

Nokiosoft/Wokia (?) are going to have to move fast to catchup with both Google’s and Android and the iPhone.

In their statement, they said that: “Today, the battle is moving from one of mobile devices to one of mobile ecosystems, and our strengths here are complementary. Ecosystems thrive when they reach scale, when they are fueled (sp.) by energy and innovation and when they provide benefits and value to each person or company who participates.”

“This is what we are creating; this is our vision; this is the work we are driving from this day forward.”

Then the trumpets kick in: “There are other mobile ecosystems. We will disrupt them. There will be challenges. We will overcome them. Success requires speed. We will be swift. Together, we see the opportunity, and we have the will, the resources and the drive to succeed. ”

And then everyone stood up and clapped. Well, maybe not, but let’s hope it’s not a turkey, eh?

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