Nokia's business mobility strategy: for 'renew' read 'outsource'

Stuart Corner
Tuesday, 30 September 2008 08:52

IT Industry - Strategy

Nokia's foray into this business with the IntelliSync acquisition in late 2005 was precipitated by the runaway successes of the Blackberry and was mirrored with weeks by Motorola buying Good Technology.

When it announced the deal, Nokia said the combination would make it "the core mobility provider for businesses of all sizes," and that it would be "positioned to deliver the industry's most complete offering for the development, deployment and management of mobility in the enterprise."

It added that "The combination of Nokia's security expertise, mobile device leadership, customer reach and partner relationships coupled with IntelliSync's proven wireless email, synchronisation and device management software and skilled workforce is expected to significantly extend Nokia's position within the enterprise mobility market."

At the time IDC agreed , saying it believed that Nokia and Motorola were in strong positions because of their leadership in the overall mobile phone market gave them influence as well as key positions within the value chains to challenge the BlackBerry.

However, selling handsets does not necessarily give you a good entrée into corporate IT departments responsible for delivering enterprise mobility applications, and Nokia is increasingly becoming a consumer focussed brand.

In a related move it has also announced plans to sell its security appliances business, saying it is in advanced stages of discussions for the potential sale of its a financial investor that is "committed to continuing the development and growth of the business, to serving its current network of customers, and to retaining and motivating its employees."

The acquisition of Intellisync has not been without its problems. Nokia is presently facing a law suit from the former shareholders of Tourmaline Networks, a company that claimed to have been one of the first companies to create software that allowed consumers to access their emails on their cellphones and which was bought by IntelliSync for $US4.1m some months before Nokia bought IntelliSync.

The shareholders claim that IntelliSync, an Nokia, wilfully violated the merger agreement. Nokia has filed a cross-complaint alleging fraud. The shareholders in turn say that Nokia's cross claim is without merit and intended solely to intimidate them into settling the matter.