First, the overview. Over the past decade, Nokia has gone from being a mobile superpower to being yesterday's news. Nokia stagnated on the ageing Symbian operating system and despite having good devices, it wasn't enough to keep the business growing steadily.
So when it came to competing with Android and Apple, Nokia was wearing a loincloth while everyone else was in suits. Worse, Nokia, in its assumption that it was still a powerhouse, refused to adapt to a new operating system and instead tried to build its own. But the timing was wrong.
You can almost see the reason behind Nokia thinking differently. The company was trying to rebuild the mobile world in its own image in order to dominate again, but this time there were three gods who were battling for supremacy. When Nokia realised that it had lost the game, a rumour from London arose.
At a mobile conference a few years ago, the rumour was that Nokia was working with a software partner to adapt an OS to run on its devices. That rumour went as far as indicating that Apple might be the partner. Nokia people denied the rumour, but it turned out to be true.
However, it was Microsoft, not Apple or Android, that held the engagement ring. After what seemed to be a profitable engagement, Microsoft finally moved beyond popping the question to actually stepping up and the two companies became one.
Mind you, this is only Nokia's mobile devices unit. Nokia as a company will exist, but they will no longer work on mobile handsets.
For Microsoft, in the mobile world, it hasn't been a bed of roses, and even this acquisition is not going to be easy to manage.
Microsoft has had a shadow hanging over its head when it comes to mobile. Microsoft tried everything and failed miserably year after and year, and every step it took seemed to be a step backwards.
Microsoft's most significant failure in mobile came when it acquired a small company called Danger, which made a device aimed at the youth market called The Hiptop Sidekick.
The device was quite interesting as a phone, and had actually gained traction among its core target group, not just in in North America, but even as far as Australia. It was perfectly suited for its period, circa 2002, but Microsoft messed up the deal. The company never had mobile thinking.
All Microsoft has ever done is shrink its iconic Windows to fit into mobile devices. I use the word shrink, but to this day, I am yet to see someone who edits a 200-page document on Mobile Microsoft Office.
And that was just part of the problem. So Microsoft has lumbered along with its own ideology of innovation, which has not worked, and in the end, it is that relationship with Nokia that led to the Lumia line of phones.
That is the history lesson, now let us move forward. What does Microsoft need to do to prevent a flameout and more importantly, what does this mean for developers and partners?
For the relationship to work, Microsoft needs to end the internal civil wars in its corporate structure. The company will need to put in a smooth and swift chain of command that allows it to respond quickly.
That is easier said than done. Microsoft has a cult following with a large number of "fanboys," both externally as customers and partners, and internally as employees, but they will jump ship if a better deal comes along. If Microsoft does not shape up internally, Lumia will die.
Microsoft also needs to defragment its operating systems and products. Now this is not a unique statement, but it is very real. Microsoft Mobile always flamed out when they put Windows on mobile phones using the Windows interface. It was horrible.
Now, Microsoft is changing its approach, but not its thinking. Since Windows on mobile has sort of been a success, Microsoft figures it makes sense to do the same for desktops. A very bad idea.
What Microsoft needs to do is make a mobile operating system and user interface for its mobile devices, adapt it to tablets and then make another operating system and user interface for its users.
Since it is spending billions of dollars acquiring companies and talent, why not spend a bit of it to make an operating system for tablets as well?
For developers and partners working with Microsoft, everything changes. If Lumia continues growing, app developers across the world will have the chance to work on a growing ecosystem, and there will be significant financial gain as well as acclaim and recognition from this relationship.
If Microsoft fails with this latest acquisition, it will almost certainly be the end of the company's mobile forays. This is a bigger deal than the world assumes.
So, two companies, both in real decline and with serious innovation issues, have become one. Let us see what happens.
Kahenya Kamunyu is a blogger and founder of Able Wireless.E-mail: Kahenya@virn.net