Last week, Microsoft and Nokia jointly announced that it will make Microsoft’s Office mobile suite of software to work on Nokia phones. The agreement includes:

  • Mobile versions of Word, Excel, PowerPoint, OneNote.
  • Mobile version of Office Communicator
  • Mobile access to intranet and extranet built with SharePoint
  • Enterprise device management with Microsoft System Center.

So what does this mean?

In short, not much.

Nokia and Microsoft already have a history working together in the mobile arena. Last year, they also announced that Silverlight will be supported on Nokia phones. Some people are speculating that this deal spells the demise of Windows Mobile. Not a chance! Mobile is too important for Microsoft to give up. People need to understand that Stephen Elop (President of Microsoft’s Business Division) has his own business to run. It’s clear that Windows Mobile is not going anywhere in the near future, so he needs to be investing in other mobile platforms. On the other hand, Nokia has been getting beaten up by RIM and Apple. The company has been floundering for a while, and they need all the help they can get to give customers reason to stick with Nokia. Getting MS Office is not a bad short-term band-aid for them.

All in all, the deal is mutually beneficial to both companies as both are getting pretty desperate. But make no mistake – the deal won’t save neither company if they don’t get their products right.