Microsoft Absorbs Nokia: What Does This Mean for the Job Market?

Microsoft’s recent purchase of Nokia for $7.2 billion left many questions unanswered. What lies ahead in the world of Microsoft products? Or where is the job market headed?

Newly Acquired Patents

A deal with Nokia provided Microsoft with a whopping 8,500 phone patents and 30,000 utility patents. As you will see in the future, Microsoft is aiming to try its very best to become dominant again in the smartphone market. As they stand today, Microsoft only holds a 3.3 percent market share, with the ever-dominating Android holding roughly 79 percent. In order for Microsoft to win the smartphone wars, major upgrades are needed to its current line of Windows phones.

With the implementation of new software like Windows Surface, there are clear signs that Microsoft is shifting its focus toward mobile devices. At the moment, Microsoft’s total number of employees is just below 100,000 as of June 2013. With newly acquired patents, Microsoft has additional breathing room not only to develop new mobile products, but also push these out to consumers within a short amount of time. With that being said, Microsoft may soon be hiring a large amount of developers, marketers, and Information Technology specialists, to help make the push toward being a dominant player in the mobile arena.

Increasing the Workforce

As said, Microsoft employed just fewer than 100,000 people as of June. However, with the Nokia deal now final, Microsoft is picking up an additional 32,000 workers. A majority of these people live in Finland. Out of these new acquisitions, just over 18,000 are involved in the manufacturing space. If Microsoft can pull off desire for their new products within the next year, there may be significant demand in the areas of manufacturing around many Asian and European countries. As interim Nokia President Timo Ihamuotila stated, Microsoft is aiming to ramp up its presence overseas.

Ousting of Steve Ballmer

Steve Ballmer, longtime CEO of Microsoft since 2000, is reportedly retiring by August of 2014 following the deal with Nokia. Many analysts attribute Microsoft’s declining revenues to Steve Ballmer’s decision making over the past 13 years. With Steve Ballmer now out, can we expect further growth of Microsoft? This seems to be the popular belief. Reports have stated that Nokia CEO Stephen Elop may soon become Microsoft’s core CEO once Ballmer’s time is up.

As it stands right now, Elop is stepping down from running Nokia and will return to his position of leading the devices group at Microsoft. This includes products like the Surface tablets and Xbox. Back in 2011, Nokia and Microsoft worked together on the software OS for all Windows phones. With this new acquisition, Microsoft is aiming to become a leader again in terms of innovation in the software world.

Future Plans

Although Microsoft’s deal with Nokia does not officially close until 2014, plans are already in motion for Microsoft not only to hire additional workers, but also to become a relevant provider for average customers once again. Along with increasing market share, Microsoft is planning on improving the quality of its smartphones while pumping out OS updates for its existing smartphones on a regular basis. To do this, Microsoft will need to hire mobile workers that specialize in sectors such as quality control, testing, and debugging.

Even with Microsoft’s work force growing by one-third following this deal with Nokia, they now have thousands of additional software patents under their belt to stir up innovation. With increased innovation comes the need for more marketers, assembly line workers, developers and more. Microsoft shows no signs of slowing down their hiring if profitability can improve. And the need for qualified professionals with an online mba degree has never been higher.


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