Microsoft and Nokia agreed to equip MS Office in Mobile Phones

Microsoft and Nokia, long adversaries in mobile phone technology, have agreed to a partnership to equip many Nokia cellphones with the Microsoft Office software, according to a person with knowledge of the agreement.

Microsoft’s lucrative Office line faces an emerging competitive threat from free Web-based word processing, spreadsheet and other software, especially from Google. And consumers are increasingly using their smartphones to do tasks that once could be done only on personal computers, Microsoft’s stronghold.

“This appears to be a case of the enemy of my enemy is my friend,” said Rob Enderle, an independent technology analyst.

The alliance, expected to be announced Wednesday, seems to be a pragmatic step by both companies, as each tries to cope with growing competitive threats.

Nokia, the world’s largest cellphone maker, is struggling in the smartphone market against rivals led by the iPhone from Apple and the BlackBerry by Research in Motion. The competition is increasing with the recent entry of phones using the Android software from Google.

Neither company would comment. The two companies said in an advisory that they would hold a conference call on Wednesday.

Nokia and Microsoft have been rivals for years in cellphone operating systems, with Nokia adopting Symbian software and shunning Windows Mobile. Despite few details, the Microsoft-Nokia alliance apparently extends only to Office.

“This does seem to be a case of Microsoft Office business trumping Windows Mobile,” said Matt Rosoff, an analyst at Directions on Microsoft, a research firm. (Steve Lohr -NY Times)