Close Menu
TechCentralTechCentral

    Subscribe to the newsletter

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Facebook X (Twitter) YouTube LinkedIn
    WhatsApp Facebook X (Twitter) LinkedIn YouTube
    TechCentralTechCentral
    • News
      Fewer stores, more Bash: TFG's online pivot gathers pace

      Fewer stores, more Bash: TFG’s online pivot gathers pace

      6 November 2026
      Tesla pulls the plug on the Cybertruck

      Tesla pulls the plug on the Cybertruck

      6 November 2026
      AA boss gives South Africa's car industry five years - Bobby Ramagwede

      AA boss gives South Africa’s car industry five years

      6 November 2026
      AI's black box may not be so black after all

      AI’s black box may not be so black after all

      6 November 2026
      Big wind farms drive a surge in private power registrations

      Big wind farms drive a surge in private power registrations

      6 November 2026
    • World
      John Ternus faces first big test as Apple CEO - John Ternus

      John Ternus faces first big test as Apple CEO

      2 November 2026
      Alleged Israeli spy company heavily targeted Starlink users

      How online ads were used to hunt Starlink users

      28 October 2026
      Anthropic's IPO stands alone

      Anthropic’s IPO stands alone

      23 October 2026
      PHP flaws trigger global scramble as hackers pounce

      PHP flaws trigger global scramble as hackers pounce

      22 October 2026
      OpenAI turns the tables on Apple in trade secrets fight

      OpenAI turns the tables on Apple in trade secrets fight

      15 October 2026
    • In-depth
      Ducking hell: inside Apple's hidden list of words the iPhone won't suggest

      Ducking hell: inside Apple’s hidden list of words the iPhone won’t suggest

      6 November 2026
      Why investors are souring on Netflix

      Why investors are souring on Netflix

      22 October 2026

      10 days that changed the course of AI

      21 September 2026
      Meta to the AI industry: slow down without us - Mark Zuckerberg

      Meta to the AI industry: slow down without us

      16 September 2026
      Google DeepMind CEO Demis Hassabis. Image: John Sears

      The plan to stop AI from breaking the world

      16 July 2026
    • TCS
      TCS+ | Old Mutual's Celiwe Ross on leading people through AI - Old Mutual

      TCS+ | Old Mutual’s Celiwe Ross on leading people through AI

      6 November 2026
      TCS+ | How the Apple ecosystem drives productivity for SMEs - Sudesh Pillay iStore and Kevin McLennan

      TCS+ | How the Apple ecosystem drives productivity for SMEs

      6 November 2026
      TCS+ | Vox on AI, data rules and omnichannel communication for SMEs

      TCS+ | Vox on AI, data rules and omnichannel communication for SMEs

      26 October 2026
      TCS | The Cape Town firm quietly connecting Eskom, Pep and 6 000 ATMs - Réan van Niekerk, Metacom

      TCS | The Cape Town firm quietly connecting Eskom, Pep and 6 000 ATMs

      23 October 2026
      TCS+ | Boards are underestimating the cost of a cyberattack, says Arctic Wolf - Jason Oehley and Andre Den Hond

      TCS+ | Boards are underestimating the cost of a cyberattack, says Arctic Wolf

      22 October 2026
    • Opinion
      Icasa's Sim rules need a privacy backstop - Lloyd Matthew and Heinz Vollmer

      Icasa’s Sim rules need a privacy backstop

      5 November 2026
      AI's boardroom honeymoon is over - Gary Stocks

      AI’s boardroom honeymoon is over

      22 October 2026
      Before South Africa licenses Starlink, it should look at Ukraine - Duncan McLeod

      Before South Africa licenses Starlink, it should look at Ukraine

      21 October 2026
      Nonkqubela Thathakahle Jordan-Dyani

      Why cybersecurity is now a national security issue for South Africa

      15 October 2026
      When a machine can choose, who does it become? Fanie van Rooyen

      When a machine can choose, who does it become?

      9 October 2026
    • Company News
      • 1Stream
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • Ascent Technology
      • AvertITD
      • BBD
      • Braintree
      • CallMiner
      • CambriLearn
      • CM.com
      • Contactable
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • HOSTAFRICA
      • Incredible Business
      • iONLINE
      • IQbusiness
      • Iris Network Systems
      • Kaspersky
      • LSD Open
      • Mitel
      • NEC XON
      • Netstar
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Publishared
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Telviva
      • Tenable
      • Vertiv
      • Videri Digital
      • Vodacom Business
      • Vox
      • Wipro
      • Workday
      • XLink
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and media
      • Cloud services
      • Contact centres and CX
      • Cryptocurrencies
      • Education and skills
      • Electronics and hardware
      • Energy and sustainability
      • Enterprise software
      • Fintech and payments
      • HealthTech
      • Information security
      • Internet and connectivity
      • Internet of things
      • Investment
      • IT services
      • Lifestyle
      • Policy and regulation
      • Public sector
      • Retail and e-commerce
      • Satellite communications
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
      • Watts & Wheels
    • Events
    • Advertise
    TechCentralTechCentral
    Home » Opinion » Toby Shapshak » Start with the Finnish

    Start with the Finnish

    By Toby Shapshak9 September 2013
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    Get breaking news on WhatsApp

    Toby-Shapshak-180In a widely expected move, Microsoft is buying Nokia’s handset division, giving it the hardware it needs to compete in the new war of ecosystems against Apple and Google. The only surprising thing is that Microsoft paid more for Skype (US$8,5bn, in May 2011) than it did for Nokia ($7,2bn).

    It’s tempting to proclaim the end of the age of services in favour of the age of selling things. But Nokia’s handset and services division brings with it some impressive intellectual property, including superb maps and music services. And, as Apple has shown us with varying levels of success, selling things (like iPods or iPhones) is a nifty way of selling services.

    But, like the Skype acquisition, commentators will be asking: how it will work. Will Microsoft suck Nokia into the middle-management malaise that permeates Redmond?

    Microsoft’s other significant acquisitions have had a less than successful integration: Overture, an early Web company which pioneered the AdWords concept that is now the foundation of Google’s search empire, is one example.

    Until Skype, Microsoft’s previous biggest purchase was aQuantive, an advertising company that it paid $7,3bn for in 2007 and which required a $6,2bn write-down last year. It’s still not clear whether Skype will deliver something to the bottom line, even if the user experience has improved for Microsoft’s consumer.

    At least we know that the next attempt at a tablet (after the $900m write-down disaster that was Surface) will be a decent one, powered by Nokia’s design team and hopefully avoiding the usual Microsoft strategy of trying to please too many internal and usually conflicting purposes.

    The problem for Nokia is whether the old-school Windows protectionism will dictate mobile development or whether Microsoft will give the mobile experts it has just bought free rein.

    Microsoft, as has been exhaustively noted, is in a bind: its Windows and Office divisions are its cash cows but it has not fully embraced mobile, which is where all the growth is coming from as the PC era stalls and desktop computer sales plummet.

    They must be wearing sackcloth and ashes in Helsinki at the thought of this key strategic and economic asset (Nokia contributes a sixth of the Finnish economy) slipping out of the country and out of Europe.

    Nokia’s shareholders should be happy, as the loss-making phone giant reels from misjudging the smartphone era. Its Windows Phone-powered handsets have failed to recapture its once dominant market share.

    Microsoft is paying $5bn for the handsets and $2,2bn to license its patents for 10 years, crucially in a nonexclusive arrangement. So Nokia could conceivably sell the patents to other manufacturers.

    Stephen Elop
    Stephen Elop

    Nokia will be left with its networking division, boosted by its recent acquisition of the stake held by its former partner, Siemens.

    While Apple’s own mobile hardware business grew organically and has boomed, Google’s purchase last May of Motorola hasn’t produced anything noteworthy in over a year. Now Microsoft has to avoid the same pitfalls, but it has the very capable Stephen Elop to help it.

    Elop headed Microsoft’s Office division before being poached three years ago to the month to save Nokia from what he called a “burning platform”. He is now being touted as a replacement for CEO Steve Ballmer, who last week announced he would retire within the next 12 months.

    Microsoft needs someone to steer it forward into the 21st century’s mobile age. It’s something even Microsoft surely can’t mess up.

    • Toby Shapshak is editor of Stuff magazine. This column was first published in Financial Mail

     

    Add TechCentral as a preferred source on GoogleFollow TechCentral on Google NewsGet breaking news on WhatsApp


    Microsoft Stephen Elop Steve Ballmer Toby Shapshak
    WhatsApp YouTube
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleConcourt to hear social grants case
    Next Article SA losing out on tax online

    Related Posts

    Free Office, free Photoshop: AI is breaking Big Tech's business model

    Free Office, free Photoshop: AI is breaking Big Tech’s business model

    30 October 2026
    AI is squeezing Google's search growth - and its cash

    AI is squeezing Google’s search growth – and its cash

    29 October 2026
    Microsoft offers voluntary severance to 60 000 staff as AI bill mounts

    Microsoft offers voluntary severance to 60 000 staff as AI bill mounts

    27 October 2026
    Company News
    XLink brings dual-network resilience to eSim

    XLink brings dual-network resilience to eSim

    6 November 2026
    CambriLearn parents can now ask AI whether their child went to class

    CambriLearn parents can now ask AI whether their child went to class

    6 November 2026
    'There was hunger for alternatives': PSET launches at Purcon 2026 - Ebenezer Smith

    ‘There was hunger for alternatives’: PSET launches at Purcon 2026

    6 November 2026
    Opinion
    Icasa's Sim rules need a privacy backstop - Lloyd Matthew and Heinz Vollmer

    Icasa’s Sim rules need a privacy backstop

    5 November 2026
    AI's boardroom honeymoon is over - Gary Stocks

    AI’s boardroom honeymoon is over

    22 October 2026
    Before South Africa licenses Starlink, it should look at Ukraine - Duncan McLeod

    Before South Africa licenses Starlink, it should look at Ukraine

    21 October 2026

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Latest Posts
    Fewer stores, more Bash: TFG's online pivot gathers pace

    Fewer stores, more Bash: TFG’s online pivot gathers pace

    6 November 2026
    Tesla pulls the plug on the Cybertruck

    Tesla pulls the plug on the Cybertruck

    6 November 2026
    AA boss gives South Africa's car industry five years - Bobby Ramagwede

    AA boss gives South Africa’s car industry five years

    6 November 2026
    AI's black box may not be so black after all

    AI’s black box may not be so black after all

    6 November 2026
    © 2009 - 2026 NewsCentral Media
    Built and maintained by Chronon
    • Cookie policy (ZA)
    • TechCentral – privacy and Popia

    Type above and press Enter to search. Press Esc to cancel.

    Manage consent

    TechCentral uses cookies to enhance its offerings. Consenting to these technologies allows us to serve you better. Not consenting or withdrawing consent may adversely affect certain features and functions of the website.

    Functional Always active
    The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
    Preferences
    The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
    Statistics
    The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
    Marketing
    The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
    • Manage options
    • Manage services
    • Manage {vendor_count} vendors
    • Read more about these purposes
    View preferences
    • {title}
    • {title}
    • {title}
    🇿🇦 Sign up to the TechCentral newsletter