What did it cost to get Nokia to pick Microsoft Windows Phone 7 over Google Android as the OS for its new smartphones? According to a Bloomberg BusinessWeek report published yesterday, it will ultimately cost a cool billion dollars. That’s the kind of stakes we’re talking about in an apps-driven world, where the income from the apps is ultimately worth more than the income from the operating system. After all, when was the last time you heard about Microsoft paying a system vendor to put a Windows OS into a product? Usually, the cash flows in the other direction for that transaction. This story comes close on the heels of yesterday’s, a story about Microsoft tapping into its own employee base for apps-development muscle. (See “Microsoft recruits unusual troops for Windows Phone 7 OS in the smartphone apps war”)
These two developments underscore the EDA360 premise that the world of electronic system design is becoming apps driven because of the extremely high value of the continuous revenue to be gleaned from the apps markets created by new electronic products. In a world where everything electronic is tied to the Internet, every new product becomes an apps platform.