Microsoft was almost the undisputed software giant a decade ago . But smaller and newer companies like google, facebook and long time rivals like apple have been keeping it on the edge ( on internet, cloud computing, newer technologies,etc). With personal computing and networking slowly moving the mobile way , Microsoft is under need to reinvent itself very badly.
Nokia has been the leader in mobile handset market and symbian is still the leading OS of handsets. With competition from apple ( Mac in iphone, ipad) and android, Nokia feels the heat of it's slowly declining dominance in mobile handset market and need to be in top league of smart phone vendors. Now, they have taken the call to almost abandon symbian and go along with Microsoft for software.
.Nokia ignoring android and moving towards Microsoft platform is definitely a decision that has turned the world. It would be interesting to see how this marriage of the two big global brands augur for them.
As of now apple and google seem to be in a very dominant position. Unless Microsoft and Nokia come up with some innovative product combo, doom days for them in smart phone market is not long away.
Let's wait and watch!