Nokia re-evaluating Ovi services strategy
Streamlining initiative moves Ovi away from top-down services approach toward an ‘App Store’ model
After three years of acquisitions and product launches all geared at reshaping Nokia as an Internet services company, the handset vendor is toning down its services strategy, announcing today 450 layoffs and a new focus on third-party partners rather than on internal development of its own applications.
Nokia said these efforts would streamline its Ovi services business, allowing it to focus on fewer service initiatives as well as cut down on its growing number of investments in software and application developers. “The planned changes are aimed at improving and simplifying the user experience of Nokia services, increasing opportunities for third-party developers and other partners to create compelling services and accelerating the development of a common platform for Nokia’s different service offerings,” Nokia services executive vice president Niklas Savander said in a statement.
Ovi services span a range of applications and content that have traditionally been sold and managed by operators. Nokia Maps drives its location-based services efforts, providing navigation and mapping services on both the phone and PC. The launch of Ovi Music spearheaded Nokia’s entertainment service, including its Comes With Music offer, which gives customers unlimited song downloads for an entire year. On the gaming front, Nokia revamped its N-Gage platform, turning it into a gaming portal and community that functioned across a range of devices, not just its now-defunct gaming phone. Over the last year, Nokia had been expanding into mobile payment, mobile advertising and even location-based social networking.
Nokia didn’t say how each of those individual initiatives would be affected--the only specific it offered was the incorporation of N-Gage games into the recently launched Ovi store. In general, though, Nokia will seek third-party partners to build applications and services for the Ovi store and portal rather than develop them in-house. For example, Nokia said it would partner with image and social-networking sites to create image-capture and sharing features across its devices. The aim, Nokia said, is not only to broaden its reach into services already popularized on the Internet but eliminate the costs it would take to develop those services on its own.
The concept of handset maker as service provider was a fairly unique one when Nokia first launched its Ovi portal in 2007. Vendors like Research In Motion were providing e-mail services, but services were primarily the domain of the operator. That all changed with the launch of the Apple App Store, which achieved its 1 billionth download last week after just 10 months of operation. Instead of bringing application development in-house, Apple created a feature-rich content distribution portal and opened up the iPhone’s features to the broader development community, in the process attracting thousands of developers big and small. While Apple worked closely with some of its developers to offer directly a few key applications such as Google Maps and YouTube, the vast majority of content comes from independents working off of the iPhone software developer’s kit.
Want to use this article? Click here for options!
© 2014 Penton Media Inc.
In this Webinar you will learn how to create a real-time relationship with your customers, how to proactively improve the customer experience, and how to successfully target and cross-sell services to boost incremental revenue.
- Megabytes to Megabucks, Bandwidth to Business Models: How 4G Is Changing Everything
- How to Unplug Your Redundant Telco Apps To Save Money and Improve Efficiency
- When IaaS Isn't Enough: Service Provider Business Models to Drive Growth and Build Margin
- How to Transform Your Aging Telco Voice Network to Drive New Profits and Revenue
- Creative Licensing Approaches for Telcos & Their Network Equipment Vendors
- Smart Home Opportunity: Balancing Customer Data & Privacy
This paper discusses the rise of Diameter and benefits of Diameter Protocol.
- Conducting The Orchestration – Order Management at the Speed of Business
- Toward a Converged Network Edge
- Beyond Spam – Email Security in the Age of Blended Threats
- 6 Important Steps to Evaluating a Web Filtering Solution
- The Expertise to Protect You from Botnet and DDoS Attacks
- Seeing is Believing – Bridging the Order Visibility Gap
Service providers are under tremendous pressure to turn up new services faster then before and, at the same time,
to do it at less expense - and intra-office fiber is one of the biggest challenges in terms of both cost and service
From the Blog
Join the Discussion
Get more out of Connected Planet by visiting our related resources below:
Connected Planet highlights the next generation of service providers, as well as how their customers use services in new ways.Subscribe Now