"This is a partnership born out of both parties' fear of marginalisation at the hands of Apple and Google but there is no silver bullet," analyst Geoff Blaber from CCS Insight.

"This is a very frank admission that Nokia's platform strategy has failed and underlines the seriousness of Nokia's position. Such a move would have been unthinkable just 12 months ago," Blaber added.

"Right now, Nokia is in a situation that we don't know where it's going and how," said Hannu Rauhala, analyst at OP Pohjola Bank in Helsinki, shortly before the announcement.

‘Not a Crisis Firm’

Speaking on YLE’s morning TV talk show, research director Jyrki Ali-Yrkkö of the Research Institute of the Finnish Economy (ETLA) stressed that Nokia is not a company in crisis. It has continued to generate good results, but must reverse its loss of market share.

Ali-Yrkkö downplayed the significance of the nationality of those on the Board of Directors, saying the most important thing is to choose qualified people.

He says that CEO Stephen Elop’s ‘burning platform’ memo to employees this week was likely intended to alert the company's management and employees to the necessity of a new way of thinking due to the speed of changes in its competitive environment.

More on this topic:

Nokia Joining Forces With Microsoft

Government to Help if Nokia Cuts Jobs: Pekkarinen

Elop's Burning Platform Memo Raises Expectations

Nokia Informs Workers of Changes