Linux firm claims Nokia/Microsoft deal will help open source

Wireless Linux group LiMo believes Nokia's decision to enter into a broad strategic partnership with Microsoft to create a "new global mobile ecosystem" will boost the open source mobile software market.

LiMo argues that the two companies' agreement will push smaller phone makers to seek alternative software platforms with which to differentiate themselves.

The smartphone market is becoming increasingly competitive. It was led by Nokia's Symbian operating system for a decade, before the 2007 launch of Apple's iPhone. Now, though, Android has overtaken all competitors to become the most popular platform in the world last quarter.

"With Microsoft and Nokia now in lockstep and the Android arena rapidly becoming commoditised, other handset vendors must look elsewhere to avoid the irreversible margin collapse that befell PC manufacturers," Morgan Gillis, head of LiMo, told news agency Reuters.

"The new tie-up has great upside for Microsoft although there is also a major risk that the existing Windows Phone vendors will now feel alienated," he added.

"It's clearly a huge gamble for Nokia but they were caught between a rock and a hard place."

Meanwhile, the non-profit Linux outfit has unveiled a new version of its own platform, which it expects to start appearing on new smartphones in the second half of 2011

Nokia's CEO claims the alliance with Microsoft will be worth billions to the firm and drastically help its efforts in smartphone market.

"Microsoft is contributing to Nokia substantial monetary value," Stephen Elop said ahead of the Mobile World Congress in Barcelona, according to Reuters.

"Some people interpret that to be in the millions or tens of millions," said Elop, who left Microsoft to take the helm of Nokia in September.

It is, however, a much better deal than that for Nokia, Elop said, because it "is measured in the B's not M's."