(Just repost of my my post from other thread):

Nokia did their business around wireless communications. They did it very well and grew into a big company.

But time changes and market is saturated with handsets. To be on top they need to invent something - Steve Jobs did in similar case iPhone (Apple was just computer manufacturer that time) then iPad etc. But they just was driven into smartphone market and that territory is not good for RF handset manufacturer - it requires a software development skill and it competes with computer vendors.

If Nokia did a good move - conquer mobile video communication market or mobile TV or something else then they could be transited into new market and keep their top place. But they didn't risk to do it ... and that is an exactly reason, why Nokia considers Maemo/MeeGo as a stepson - they just don't believe in it. They just invest in Symbian ignoring that it may be only a temporary solution with limited outcome (just remember that it is a software market, not hardware, and Symbian can't compete with giants)

So, MS-Nokia alliance seems very logical from that point of view - get an access to resources of very big software manufacturer, Linux is not seen as a serious solution from their point of view.

It is a very common among top managers, just reminder - two years ago nobody consider Linux-based/open source based phone system seriously at all and even Google was forced to manufacture his own phone (Nexus1) to prove manufactures it. Google stopped selling it as fast as it confirmed that anybody get a lesson. Now anybody knows where is the future... just in one year... but it is too late for Nokia.

ADDED: top management can't be just judges in internal competition, they need some vision to win a market. Nokia hasn't a right one.