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Summary: At least one organisation has decided to go for Windows Phone, ditching its old Symbian devices for new Lumias - and citing Office integration as the reason for the move.
Foxtons is ditching its Symbian phones for Nokia Windows Phone handsets. Image: Easycompare.com
Nokia has announced a minor enterprise win with UK real estate agency Foxtons replacing an existing fleet of Symbian-based Nokia E Series devices with the Lumia 820.
Foxtons has deployed around 900 of Nokia's flagship 820 devices to employees so far, according to Nokia.
One of the main reasons it chose to upgrade was the tighter integration the Windows Phone devices offered with Foxtons' existing Microsoft email client Outlook.
The other advantage Nokia mentions are the Office applications bundled with the device — a key differentiator for it as an enterprise device compared to the iPhone, which Office does not support yet.
Nokia is also touting benefits of the Windows Phone platform for developers familiar with building for Windows, pointing to a personnel management app Foxtons is building.
"In a fast-moving business with many staff movements across departments and locations, keeping an accurate, up-to-date contact list is a challenge for us," said Foxtons' director of IT, Dan Rafferty, in a statement.
"We've developed an app integrating our personnel system with our active directory and phone system so all the information is accurate and can be accessed directly from our agents' Nokia Lumia 820s. It's a great timesaver and asset for the team. The Nokia Lumia 820 aligns with our entire device strategy and allows us to fully integrate our current Microsoft systems throughout the company."
Nokia announced better-than-expected Lumia sales in the fourth quarter of 2012 and even stronger sales of its low-end Asha line, but as analyst firm Gartner noted recently, these have not been large enough to offset lost market share from the decline in sales of its abandoned Symbian platform.
Summary: After enjoying Microsoft's financial support through the transition to Windows Phone, it's time for Nokia to pay.
Microsoft's $250m quarterly "platform support payments" to Nokia for using Windows Phone has always exceeded Nokia's own royalty payments to Microsoft for the software, but from now on the scales could be tipping the other way.
Historically, Nokia said, it has received more than it pays in "minimum software royalty commitment payments", but it expect for the rest of the lifetime of the deal to no longer be the net beneficiary in the quarterly exchange the pair make.
"To date the amount of platform support payments received by Nokia has exceeded the amount of minimum royalty commitment payments to Microsoft. Thus for the remainder of the life of the agreement the total amount of the minimum software royalty commitment payments are expected to exceed the total amount of the platform support payments," Nokia states in its Q4 earnings results (pdf).
Nokia's payments are based on a software royalty structure that includes "minimum annual software royalty commitments", which are paid on a quarterly basis.
That would suggest that Nokia expects to increase volumes of its Lumia devices, which run Windows Phone, beyond well beyond the 4.4 million Windows Phone Lumias it sold last quarter. Sales of the handsets are already on an upward trajectory - Nokia sold one million Lumias in 2011 (the devices were released in October of that year), and over 14 million in 2012.
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