Big stakes for Nokia

Nokia’s enterprise strategy has reached new heights with the recent acquisition of Intellisync, a provider of platform-independent wireless messaging and applications for mobile devices. By acquiring Intellisync, Nokia hopes to be in a position to deliver a complete offering for the development, deployment and management of mobility in the enterprise.

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By  Simon Duddy Published  November 20, 2005

|~||~||~|Nokia’s enterprise strategy has reached new heights with the recent acquisition of Intellisync, a provider of platform-independent wireless messaging and applications for mobile devices. By acquiring Intellisync, Nokia hopes to be in a position to deliver a complete offering for the development, deployment and management of mobility in the enterprise. Nokia is expected to acquire Intellisync for US$430 million and the transaction will combine Nokia's security expertise, mobile devices, customer reach and partner relationships with Intellisync's proven wireless e-mail, synchronisation and device management software. It is likely that Nokia will integrate Intellisync’s product lines into its own recently announced Business Center, which Nokia has positioned as enabling e-mail for lower-end users. While Intellisync is small, it has the kind of strategic partnerships that Nokia will find very useful. One of the problems Nokia has faced with push e-mail is that its service is generally limited to devices with the Symbian operating system. This purchase extends Nokia’s enterprise portfolio by adding support for additional device types, such as Palm, Microsoft and Brew, in addition to greater support for mobilising back office applications such as Oracle. Nokia is moving inexorably towards the enterprise, especially with regards new technology such as push e-mail, but while this opens up new revenue streams for the mobile phone giant, it also risks rubbing service providers up the wrong way. Nokia’s core business is dependent on solid relationships with service providers and as they are promoting their own products for push e-mail and other communications services, they might react against Nokia’s expansion into these areas. Similarly, Nokia has existing relationships with push e-mail vendors such as Research In Motion and Good Technology and it is possible that they will move to counter Nokia’s growing interest in the segment. Analysts have pegged the push e-mail market as a key growth area for the next ten years and there is no doubt that Nokia will grab a slice of the pie. How a big a slice, however, depends on not just how well it develops new technologies and strategies but how these affect its existing key relationships.||**||

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