Wireless
Microsoft Strengthens European Presence
Mark Lewis, 03.13.02, 12:45 PM ET
NEW YORK - More bad news for Nokia: Steve Ballmer is playing the part of the Pied Piper of Hamelin, and he has lured Deutsche Telekom into Microsoft's wireless-services camp.
The Pied Piper of legend appeared in the German town of Hamelin, near Hanover, and played his flute to entice the town's children away. Ballmer, the Microsoft (nasdaq: MSFT - news - people) chief executive, is in Hanover for the CeBIT technology fair, and he just announced that Microsoft and Deutsche Telekom (nyse: DT - news - people) have formed an alliance to offer wireless services to business customers.
That will strengthen Microsoft's presence in Europe as it seeks to compete internationally with Finland's Nokia (nyse: NOK - news - people) and other wireless rivals. Nokia on Tuesday announced that its first-quarter sales will be lower than expected; Ballmer's announcement adds to the gloom by underscoring Microsoft's long-term interest in moving onto Nokia's wireless turf.
Deutche Telekom also said it will customize Microsoft's Windows Smartphone software for its T-Mobile wireless unit, which has about 44 million customers around the world.
Microsoft's success has been based on providing operating systems for PCs, but consumers are beginning to migrate from the PC to various mobile devices, and Microsoft cannot afford to be left behind. Windows Smartphone is a key part of its strategy to jump on that trend, so Deutsche Telekom's embrace of the software, while not unexpected, may boost Microsoft's momentum.
Separately, Ballmer also announced that SAP (nyse: SAP - news - people), the big German software firm, has agreed to make its software compatible with Microsoft's Internet-based .Net platform.
"SAP users will be able to use .Net in close conjunction with SAP applications,'' Ballmer told reporters in Hanover, as quoted by Reuters. "SAP support for .Net is an important milestone for us."
The Pied Piper strikes again. Ballmer apparently is playing a persuasive tune, and winning converts in Nokia's own backyard. If all goes according to the legend, then this story may end badly for Microsoft's wireless rivals. |
