The problem with Nokia is that their software is no where near the high standard of their hardware.
Nokia needed a bold move in the software/OS/platform area in order to become a mobile leader again.
Why not Android?
In the short term, going exclusively with WP7 will likely cause Nokia phone sales to plummet even further in the market share race as traditional Nokia fans flee the flock. Fewer would have fled if Nokia offered Android phones.
What happens to the other WP7 partners?
These OEMs seem to be using WP7 as a hedge against Android so that if Google gets too pushy they can always threaten to put more of their resources into WP7. The Nokia deal will likely keep them focused on Android with WP7 a second-class citizen.
What about Microsoft’s reputation in Europe?
The European Union has been a constant thorn in Microsoft’s side because of its Windows and Office monopolies on PCs. With the switch to WP7, Nokia will likely push a sizable chunk of its customers into the arms of Android and iPhone.
Why Nokia choose Micrsoft over Google ?
Google and Microsoft had offered Nokia “hundreds of millions of dollars” to go with their respective platforms. But Microsoft eventually paid BILLIONS !!!