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Nokia, Yahoo! form strategic alliance

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 Yahoo and Nokia backgrounder 24th May 2010

Yahoo! and Nokia today announced a widely anticipated strategic alliance allowing the two companies to share technologies.

This move can either be seen as an interesting and dynamic collaboration between the two companies, or alternatively an act of desperation between two companies that are beginning to struggle against fierce competition.

The main features of the alliance are that Nokia will provide Ovi branded maps and navigation for Yahoo!, and Yahoo! will provide email and chat for Ovi. Both companies are also working towards a single sign on for both Ovi and Yahoo! which will make integration work more smoothly.

Yahoo!'s range of Internet properties are quite broad, and apart from email, messaging and search, Yahoo! also owns Flickr and its own advertising network that could probably be leveraged into Nokia handsets. Even though Yahoo! has struggled lately, it is still a much more popular service than Ovi ever will be.

The move unites Nokia and Yahoo! against a common competitor in the shape of Google, which has hooks very deeply into Android, and it will also bolster the companies against the expected onslaught from Windows Phone 7 later this year.

We should see co-branded offerings later this year with a full global rollout expected during 2011.


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