Nokia and Microsoft deal: all you need to know

Nokia and Microsoft's recently announced tie-up for Windows Phone 7 isn't as simple as the Finns becoming another user of the OS - it goes far deeper than that.

Both are being bullish about the move, claiming that the tie up puts them firmly as the 'Third Ecosystem' in the mobile OS world, throwing down the gauntlet to Apple and Google.

So here's a run down of all the new elements you need to know - the times, they are a-changin'....

Nokia and Windows Phone 7

There has been a raft of changes announced on both Microsoft and Nokia's side with the new Windows Phone 7 announcement, with big shifts for services and strategy:

Nokia is now going to be a key decision maker in the way Windows Phone 7 develops and grows, giving its 'expertise on hardware and support' - this also looks likely to give rise to a new subset of cheaper Windows Phone 7 devices.

They also pledge to 'closely collaborate on joint marketing initiatives and a shared development roadmap' - it will be interesting to see what the likes of Samsung and LG make of this.

Nokia is planning to use its strengths in the cameraphone sector, where it employs high-end Xenon technology and Carl Zeiss optics, with the Windows Phone 7 platform.

Bing will now power Nokia's search services across Nokia devices and services, while Microsoft adCenter will offer search advertising on Nokia handsets.

Nokia Maps will become a core part of Microsoft's mapping offering. This means Nokia Maps will be integrated with Bing and adCenter advertising to form new and more relevant local search options.

Nokia will leverage its already wide-ranging operator billing agreements for WP7, making purchasing applications and services easier for consumers in countries where credit or debit card use isn't prevalent.

Microsoft development tools will be the main way to create applications to run on Nokia Windows Phones - QT is still going to be the way forward for Symbian and MeeGo, but its unlikely it will be combined with Microsoft's Silverlight use.

Nokia will integrate its applications and content to Microsoft's Windows Phone Marketplace "more compelling consumer experience". However, the Ovi store won't be ditched, as Symbian users will still need an outlet.

Sadly, it's unlikely that this will continue to get the same amount of love as before though, as the smartphone strategy will shift over time towards Windows Phone 7 devices.