Nokia has already announced the key piece of its strategy–a shift to Windows Phone for future smartphones. Now the company is set to talk about the financial implications of that and go through the rest of its strategy, which includes a mix of Symbian and even a dash of MeeGo.

The investor event is scheduled to start shortly and due to run until about 2 pm London time. Mobilized will have live coverage, providing our battery holds out. I’ll try to mention only the high points, however. Mobilized loves numbers, but it is awfully early for a whole lot of financial speak, especially for the U.S. insomniacs tuning in.

12:02 pm: Still waiting for things to get going. But if you really want something to do, we have plenty of earlier coverage, including the press conference and the YouTube video of Microsoft CEO Steve Ballmer and Nokia CEO Stephen Elop, as well as a chat with Elop on how he made his big decision.

12:05 pm: Okay, things are getting going as Elop takes the stage (the same one as the earlier press conference.

12:06 pm: Elop is reviewing things. Lots of talk of both challenges and gems. If you read his memo, or anything else he’s said recently, you have heard this.

Battle of devices to war of ecosystems, etc. Mobilized has this part memorized.

12:09 pm: Smartphone strategy is just one piece.

Reviewing the three alternatives that Elop considered–MeeGo, Android or some partnership with Microsoft.

As for Google, Elop says it is the case there are some advantages for that approach.

“There’s something happening there. There’s no denying that.”

However, Elop says the company was worried it would be late and be just one of many, and was not sure how it could leverage assets like its Navteq location-based services.

“Our sense was differentiation could be a pretty big challenge,” Elop says. “The risk for commoditization would increase dramatically.”

Feels profit would have eventually moved to Google, with handsets becoming a commodity.

“It felt a little bit like giving up and not enough like fighting back,” Elop says.

12:12 pm: As for Microsoft, Elop says both companies are bringing something to the table.

As expected, Elop is characterizing this as more strategic than just taking a license to Windows Phone. Talking about Nokia services like mapping, local advertising and other things that Nokia can bring to the table.

“It’s far more interesting than a simple licensing deal,” Elop says. This was the only strategy that makes it a three horse race with Google and Apple.

Elop says he is convinced that Nokia will be able to differentiate within the Windows Phone ecosystem on a sustainable basis.

12:15 pm: There were some challenges and potential disadvantages, he acknowledges.

Top among these is the fact that Windows Phone 7 is new on the market.

“It’s early,” he says. “Will it succeed?”

12:17 pm: Also, there is the issue of being locked in or a lack of control. Elop does not disclose terms but says the company has flexibility and “substantial control” over the future of the ecosystem.

“This is not your mother’s OEM deal with Microsoft,” Elop says.

12:17 pm: Elop says the deal is at the “term sheet” stage, noting that the companies have yet to sign the “definitive agreement.”

12:18 pm: Already the engineers are working through, and Elop says this deal will allow Nokia to move far faster than it has in recent years.

12:18 pm: He’s also making the cost-saving argument, saying Nokia can focus its investment, which he acknowledges hasn’t been getting the return it should.

Elop earlier acknowledged that the company expects significant cost savings from the move as well as substantial workforce reductions.

“Bottom line: Products that are more competitive,” he says.

12:22 pm: Operators are excited by a third viable option, Elop says.

“A two-horse race is not a satisfactory [situation] for operators,” Elop says.

Elop says that Microsoft-Nokia will be operator-friendly, as compared with Google and Apple.

12:24 pm: Elop talking about differentiation–a key concern of analysts and investors.

Elop talks about Windows Phone as offering differentiation form Apple and Google, but also insisting that Nokia has the assets and business terms it needs to stand out from other Windows Phones. He focuses on camera technologies and “unique relationship.”

Stresses again that this is not a standard handset maker agreement. But he also says that just because Nokia can change lots of things within Windows Phone, doesn’t mean it should.

Nokia, he says, must “resist the temptation to customize just for the sake of customization.”

12:27 pm: Now talking about Symbian. For those that missed it, Elop reiterates this is a transition strategy, but adds that the company still expects to sell 150 million more Symbian devices before that transition is complete.

12:29 pm: Strategy is more than just smartphones. He wants the company to be a leading force in connecting the next billion people to the Internet via phones in emerging markets. “The market for feature phones is pushing down the price curve and that is an opportunity for Nokia.”

Nokia will do incremental work in that area–things like Nokia Money for people that don’t have a bank account or telephone. Another, Nokia Life Tools, helps connect, say, farmers to market information.

This area is still a target for innovation, he says, but it also faces competition from Chinese-made phones based on MediaTek chipsets.

Elop says that the company must also plan for the future so that it can be disruptive down the road. “As they say in Finland, it is time to shoot ahead of the duck,” he says.

That’s where MeeGo comes in–the mobile version of Linux that until recently was seen as Nokia’s future. Nokia said that team will ship a phone later this year and then see where the future is headed.

12:35 pm: Want to point out this New York Times article that said both Google and Microsoft were offering hundreds of millions of dollars in engineering and marketing support in order to woo Nokia.

12:36 pm: Elop now talking about cost cuts, including significant job reductions.

“We are not announcing how many and in what country,” Elop says, but adds that the company wants to move quickly on that front.

He says that he has made changes to the business to ensure speed, including leadership structure changes aimed at ensuring accountability. “If things go well today, I’ll be the CEO.”

Of note, the two of the three business unit leaders are women–Mary McDowell, who will lead lower-end phones, and Jo Harlow, who will head the smartphone business.

12:40 pm: Nokia looking for a new leader for its services and developer division. The acting head is Tero Ojanpera, but he will soon be looking for other opportunities within Nokia, Elop says.

Also of note, Louise Pentland, who is head of the legal and intellectual property unit, is being elevated to the top leadership team.

“We have one of the strongest patent portfolios out there” he says, adding that he would encourage all players to take a license to said patents. (hear that, Apple?)

New leader of North American sales unit to be named in coming days.

“We are creating a different industry,” Elop says in closing his introductory remarks.

12:44 pm: Elop Brings on CFO Timo Ihamuotila to go through the numbers.

12:46 pm: Ihamuotila acknowledged Nokia didn’t meet the targets it had set out to achieve at its last financial analyst day.

“Our execution did not cut it.” he says.

12:49 pm: Ah, Now on to the good stuff. CFO talking financial impact from Microsoft deal. Says should be good over the long term.

Slide shows royalty payments to Microsoft causing lower gross margins, but says sales and marketing support from Microsoft should lower operating expenses.

“We will receive substantial go-to market support from Microsoft,” he says, without giving numbers.

12:52 pm: Ihamuotila talking now about the company’s long-term targets for devices and services period “after the transition period.”

Device sales to grow faster than the market, with operating margins of 10 percent or more–but this is only after the transition period, which the company has said could last this year and next.

Significant uncertainties in this period.

Ihamuotila shows a slide showing Symbian sales slowly giving way to Windows Phone with lower-end mobile phones remaining about half of sales.

12:57 pm: Ihamuotila shows chart of how it expects to cut R&D with the company investing less in services, more in entry-level phones and far less on MeeGo, though still some. The investment in Symbian will be replaced by a far lower investment in Windows Phone R&D. Overall, R&D should be a fraction of what it was.

1:02 pm: Over long term, Ihamuotila says that the Microsoft deal should help significantly boost the company’s Navteq navigation business.

“We think this new strategy is the best way to maximize long-term value, both to our shareholders and to other stakeholders,” Ihamuotila says.

On to Q&A for financial analysts.

1:03 pm: Question on how Nokia will keep employees motivated, something else and when to expect the first Windows Phone.

“Thanks for the one question” Elop quips, before addressing them in turn.

Elop says that the key is on focused innovation so they see the fresh opportunities (at least for the ones who don’t get cut by the large workforce reductions also promised).

He also pointed to his sharply worded memo, which he said was designed to convey the message that “Here is the truth, we’re making decisions and we’re moving forward.”

Won’t give date on first Windows Phone, but says again that the move will allow a substantially faster pace than the company was on with Symbian.

1:07 pm: Elop is asked about some of the challenges with Microsoft and Nokia each responsible for different pieces of software and services, as opposed to Google and Apple, where things are more integrated.

“We wanted to drive operational simplicity,” Elop says, adding that the companies talked about other arrangements, though not a full-on acquisition. The companies, Elop says, decided not to go with the operational complexity of a joint venture.

1:10 pm: Elop says Nokia has opportunities to differentiate from other Windows Phone devices, but adds it is in Nokia’s interest for there to be other strong handset players supporting Windows Phone.

“We’ve got to make Windows Phone successful,” he says.

Nokia’s mapping technology, he says, will benefit rivals like Samsung and HTC. “We’re willing to make those trades,” Elop says.

1:11 pm: Elop is asked why he feels comfortable with a “bet the farm” strategy on Microsoft, a company he clearly knows well.

Elop points out that it was harder to see how Microsoft would rapidly be successful without someone like Nokia.

“But this is now different,” he says, adding that this is now an ecosystem that Microsoft and Nokia are jointly helping to build.

Mapping and local advertising were not part of the ecosystem before the Nokia-Microsoft partnership.

As for impact of the transition, it’s hard to say, Elop says. Symbian is strong in some places where Apple and Google are present today.

1:14 pm: Asked whether Nokia will remain profitable during the transition. “It’s hard to say financially, and I am not going to provide any further specific guidance.”

1:17 pm: Elop won’t say when the first Windows Phone will ship, but lots and lots by next year at various price points.

“We’ll be shipping in volume in 2012,” he says.

1:20 pm: Another two-parter! 1) Why will Symbian be supported if it is transitioning away? 2) Why does Nokia think it will be able to have double-digit operating margins using someone else’s platform?

Elop: They recognize Symbian is key to Nokia being able to transition, but he agrees that consumers will have to want the Symbian phones Nokia builds. CFO also notes that less than half of Symbian phones are sold through carriers.

As for question on margins, CFO says the company has opportunities for higher margins around services and advertising.

1:23 pm: Asked about how the company is confident Windows Phone can get to lower prices, Elop says that was a key consideration, down to which chipsets will be supported, etc.

Between the two companies there was a lot of work to get a high degree of confidence.

“That was a critical evaluation,” he says.

That said, Elop agrees there is a smartphone market below Windows Phone that Nokia will manage with an evolution of today’s Series 30 and Series 40 operating systems.

1:31 pm: Elop: Some of the hardware designs that would have run MeeGo or Symbian will be repurposed for Windows Phone. Some devices may come out with similar models for both Windows Phone and Symbian.

1:32 pm: Question again on who pays whom in Microsoft-Nokia. Is there a lump payment from Microsoft?

Elop doesn’t answer and instead refers to slide that shows opportunities on both sides. Saying value going both ways. As for Microsoft’s payments, “That is a significant part of the conversation,” Elop says.

1:35 pm: Two good questions: Can Windows Phone be put on any current devices? What happens to QT development layer that Nokia bought and had sought to unify developer approach?

Elop: It’s not as simple as plugging in and downloading on to current phones, though some technologies can be repurposed.

QT continues to be the development for Symbian and lone MeeGo device. Also could have a role on low-end devices.

However, Elop says, “We are not proposing a QT on Windows Phone” approach. Adding another development environment could fork the ecosystem, which is not good for Nokia or Windows Phone, he says. Development environment for Windows Phone will be Silverlight and XNA–Microsoft’s current tools.

1:38 pm: Asked about branding, he says in some cases you will see both Microsoft and Nokia brands. Examples could include Nokia Search powered by Bing or Bing maps powered by Nokia, though he says those are examples and not final choices.

1:39 pm: Asking about tablets, questioner points out that Nokia had an early lead in tablets, but Apple “stole the show.”

“We are not announcing today a specific tablet strategy,” he reiterates, saying that Microsoft creates opportunities.

Elop notes that there are rumors of Windows Phone and Windows that could power tablets.

“We could do that,” he says. “We might do that.”

Also an opportunity for Nokia to step back into the game using its own software.

1:41 pm: Elop wrapping up.

“We have set a new course for Nokia,” he says, adding that despite what has been written, Nokia is still an incredibly powerful company, though perhaps not in North America. “Today we are diving forward” he says. “We have a strong partner in Microsoft who is incented as are we in making this successful.”

Investor guy closes by reminding there were forward-looking statements. He’s still going as people leave the room.

COMPLETE COVERAGE:

• Nokia’s Stephen Elop Talks to Mobilized About the Big Microsoft Deal (Video)
• Massive Layoffs Expected at Nokia
• Nokia’s Microsoft Partnership: Does the New Strategy Add Up?
• Live From the Nokia-Microsoft Press Conference: It’s a Windows Phone World After All
• More From Nokia: Forecast Gets Cloudy, Plus Expected Executive Changes
• Nokia-Microsoft: What Steve Ballmer and Stephen Elop Have to Say in Their Joint Letter
• Nokia Confirms Microsoft Partnership With YouTube Video
• R&D Spending: Nokia Vs. Apple Shows Size Doesn’t Matter
• Not Seeing Much Return on That Massive R&D Spend, Are You, Nokia?
• Nokia: Big and Slow

In fact, the only place to really find the Palm brand these days is at the Palm.com domain, which, while festooned with HP branding, still includes “Palm USA” in its page titles. Evidently this is what HP meant when it said the Palm brand would “move into the background.”

Judging from Wednesday’s event, the storied Palm brand isn’t even a sub-brand of HP. It’s just a handle for a particular division of the company, though HP insists it’s keeping it around.

“Our future strategy is to continue to build the HP brand in the marketplace,” a company spokesman told me. “Palm is a great brand that is synonymous with mobile innovation and we are delighted to have it in our portfolio of brands allowing us future options.”

That’s a nice enough thought, though it’s hard to see HP ever reviving the Palm brand in the future–not after it’s rebranded the company’s products as its own and announced plans to use them to build “the largest installed base of connected users in the world.” If it succeeds at that, will Palm really be a future branding option? Doubtful.

In that sense, Wednesday’s event wasn’t just a showcase for some slick new webOS hardware, but a eulogy to the pioneering company that made it possible, the company that created the market for handheld devices and shaped that first early vision of mobile computing….

Eh, Oldsmobile was a great brand too, I suppose.

That program, dubbed SnapTax, is off to a quick start, having notched 350,000 downloads in less than a month.

However, CEO Brad Smith said he knows that Intuit has a huge opportunity–and challenge–in the shift from a desktop-centered world to one ruled by mobile devices.

Over the last year and a half, the company has gone from essentially no mobile presence to one with more than a dozen initiatives, including a number of iPhone and Android apps as well as an SMS-based service in India that provides small-business owners ways to easily connect with their customers via mobile phone. Intuit’s SMS products in India also allow farmers to compare the prices nearby markets are offering for their crops, a feature that the company says has enabled small farmers to get, on average, 20 percent higher prices.

On Tuesday, the company is announcing its latest move–an expansion of its Mint.com iPhone app to allow for accounts to be created and fully updated from the phone (see screenshot).

It’s part of what CEO Brad Smith said is a recognition that the company not only needs to create mobile counterparts to its desktop and Web products, but in many cases also needs to offer the younger generation a mobile-only option. On Mint, for example, half of all interactions are already happening on the phone, as opposed to via the Web.

“We never would have guessed,” Smith said. However, the company has been spending a lot of time both interviewing consumers in Mountain View and meeting them on the go at places like Starbucks. Those meetings and other conversations have led Smith to shift the company’s focus. Initially, he was focused on a world where customers needed to enter their information only once. Now he is focused on creating apps that, in some cases, means a user will never type in information. SnapTax, for example, uses a smartphone’s camera to digitize tax forms and then uses character recognition to enter the text, with a customer having only to make sure the information is accurate and then answer a few questions.

“That mobile-only world is out there,” Smith said. “We’ll have to think differently.”

The opportunity is also a challenge. After forcing out competitors like Microsoft on the desktop and then acquiring Mint.com–a top Web-based finance rival–the company now sees challenges from smaller, mobile-only rivals like Square. The key, Intuit said, is the fact that it isn’t relying on the phone to do the heavy lifting. Instead, it’s using the iPhone and other devices to tie into its vast existing Web services. That, say Smith and others, gives the company a scale that its competitors can’t match. Intuit’s QuickBooks, for example, already handles one in 12 U.S. payroll accounts.

Intuit also offers services to community banks and credit unions, which in turn enable their customers to access their accounts over any phone or carrier.

Still, Smith said the company knows it needs to gain new skills and gain them rapidly. The result is that nearly every team is working on something mobile, with many of them comparing notes on what is clicking with early users. In addition to full products like SnapTax, the company also has a number of public apps on a labs site that handle everything from tracking mileage and timesheets, to Lasso–a tool for businesses to create mobile deals and promote them using Facebook.

On the horizon is a feature that will allow small businesses using its GoPayment service to process checks by taking a picture of them with a phone–much like USAA and Chase customers are able to do with their personal accounts. In response to Square, Intuit has also been giving out free credit card readers and offering a service with no up-front or monthly fees, albeit with a slightly higher transaction charge than its service for larger-volume customers. That offer is scheduled to end this month, but is likely to be extended.

The company is also trying to make sense of the opportunity created by tablets like the iPad and devices based on Android. Last week, for example, it showed how GoPayment running on the Honeycomb version of Android can take advantage of the larger-screen real estate to allow users to do more than just process payments on mobile, turning the tablet into something akin to a visual cash register.

Intuit’s employees also have been doing a lot of mobile stuff in their spare time. Intuit, much like Google, allows workers to spend a fraction of their time on pet projects. Some are potential new businesses, while a bunch are internal tools, including one notable app that calculates the cost of a meeting by adding up the salaries of all the people scheduled to attend.

But despite its progress, Smith and team aren’t satisfied.

“We’ve scratched the surface,” says CTO Tayloe Stansbury. “We’ve got a long journey in front of us.”

Indeed. Smith said that if he were grading the company on the progress it has made based on where it started, he said it might merit a 7 on a scale of one to 10. But that, he said, is not the scale he is using.

“If I score us where we need to be, I’d give us a three,” he said.

While many will observe that the company’s interest in Android appears to be timed closely with the loss of its iPhone exclusivity, the company said the strategy shift has been in the works for many months and has more to do with the fact that the company is moving to faster networks and needs devices that will really tap their power.

“They create highly functional, highly capable smartphones that run really well with our network,” Chief Marketing Officer David Christopher said. “That hits the sweet spot of our network.”

Whatever the case, AT&T has committed to having a dozen new Android products this year, including both phones and tablets.

The company introduced the first three phones at January’s Consumer Electronics Show, where it showed off Android smartphones from Samsung and HTC, as well as the intriguing Motorola Atrix, which is a powerful Android phone on its own, but can also plug into a laptop dock and power a full desktop Web browsing experience. It is also trying to break new pricing ground in selling the HTC Inspire for just $99 with a new contract.

However, there’s more to the strategy than just interesting devices at low prices. Christopher said AT&T is committed to working more closely with phone makers and Google.

“The Atrix is the best example of that,” he said. “We got involved very early in development of that product with Motorola and Google.”

However, the company isn’t looking to do all kinds of work to customize Android.

“We don’t think we have to control every element of the smartphone at all,” he said. “Our strategy has been more to partner smartly and add value where we think we have the strongest assets to bring to bear.”

Christopher pointed to location services, such as a feature that helps keep tabs on family members, as an example of where the company sees investment paying off. Carrier billing for apps and services is another area where the company has tried to lead, he said.

While many of the 12 Android devices planned for 2011 are phones, some will also be tablets, Christopher said, including the Motorola Xoom that was announced at CES. However, Christopher won’t say when that device–which is headed soon to Verizon–will make it to AT&T.

Christopher said the tablet arena is still wide open and that the company is looking far and wide in terms of which devices to offer. In addition to the iPad–which AT&T already carries–and the Android devices, other device makers such as Research in Motion and Hewlett-Packard are taking aim at the space.

“There’s going to be tablet innovation happening across the industry,” Christopher said. “Over time, I think the market will choose.”

In the meantime, Christopher said, the company will follow the same strategy it has taken with phones–offer lots of options.

“There are others as well,” he said, suggesting there are some other brands that could also find their way onto the company’s shelves. “We are casting a very wide net.”

AT&T also wants to find ways to get customers to have multiple devices running on its network. The company has taken a step toward that with the introduction of a new mobile hotspot plan that offers more data to customers who are sharing their phone’s data connection with other devices, either directly or over Wi-Fi.

But more can be done, Christopher said.

Among the options would be to have some sort of pool plan, where a customer could share data across multiple devices. Christopher said that is among many pricing possibillites that AT&T is considering: “That is one that potentially is interesting.”

“Tablet was the focus, but the changes we did also free it up to be more flexible for other contexts as well,” Honeycomb lead designer Matias Duarte told Mobilized. “It’s about really eliminating all the barriers to all the different kinds of form factors that people might want to interact with.”

Google plans to show off its work with Honeycomb, also known as Android 3.0, at an event on Wednesday. There, it will talk about the specific changes it has made, as well as the vision behind the shift.

Duarte, who joined Google from Palm last year, said there were really three major areas of focus. Clearly one was to change the way Android worked so that it was suited to devices larger than a phone. But beyond that, Duarte said, Honeycomb was about evolving Android to be better overall at mobile computing tasks. Finally, Duarte said, Honeycomb is designed to make the operating system more usable.

“All of those are works in progress,” he said. “Our work is far from done in any of those.”

One of the most notable changes in Honeycomb is the fact that it no longer has a reliance on physical hardware buttons. That paves the way for all kinds of devices, Duarte said.

“Some of them might look more like a laptop…some of them might not even have soft buttons,” Duarte said. “They might be purely gesturally driven.”

The first Honeycomb devices, however, will all be tablets, starting with the Motorola Xoom, which is headed to Verizon in February.

But, if he has done his job right, Duarte said that hardware makers will be able to create devices that Google never even contemplated. “Whatever they come up with, the most important thing is that we have given that flexibility.”

That could range to attaching Android to a refrigerator or creating products aimed at a specific demographic, such as young kids or the elderly. Heck, someone could even use Android to build a big table computer to take on Microsoft’s Surface. “I can’t see why not,” Duarte said. “I can imagine that.”

As for the potential tablets in particular, Duarte notes that those who initially brushed aside Apple’s iPad when it debuted a year ago underestimated the impact of what Apple did in bringing the multi-touch screen to a larger-size device.

“I think those skeptics were short-sighted,” Duarte said. “That’s the genius of what Apple achieved with that iPad.”

The tablet experience, he said, is largely about the touch interface, which changes people’s relationship with the content they are viewing. In moving the content into a closer and more comfortable position, people relate more and have more emotional experiences, he said.

“People have seen screens that size and have been taking screens that size to bed with them and to their coffee shops with them. They’ve been sitting with them hunched over and in all kinds of contorted positions” Duarte said. “But having that touch interface means that you can interact with the Internet or with a book or with a video player in a totally different posture, in a totally different way. It changes how you engage with the content, how long you engage with the content and even how emotionally close you are to it.”

With Honeycomb, Duarte said, he wanted to make sure that Google was opening Android up to enable those kinds of experiences, but also improving the underpinnings of the operating system to be a more powerful computing experience.

One of the changes, he said, is recognizing that people use tablets differently than they use their phone, even if they are running many of the same types of programs.

“It used to be that Android was something that you held in your hand and you would use in these relatively fine slices of time throughout the day, and then when you sit down at a table or a desk or you go home, that Android stays in your pocket or goes in a charger,” he said. “Now your experience with Android is alternating between these fine slices and these longer periods….So we need to think of Android as an experience that you have 24/7, throughout the entire day. What that means is that you are doing a lot more and you are doing a lot more for longer periods of time.”

That shift, he said, means that the operating system needs to do a better job of shifting between tasks and notifying users of what things are going on in the background. With Honeycomb, Duarte said, Google is improving its recent application switching feature that lets users easily see the places they have been working and point to them, while at the same time getting better notifications from background activities without being constantly interrupted.

Duarte characterized Honeycomb as the biggest change since the debut of Android, but it is also the latest in a series of updates that have come in rapid succession. In many cases, both device makers and wireless carriers have struggled to keep pace with Google, often failing to allow their devices to stay updated with Google’s latest and greatest, even if the phones themselves were capable of being upgraded.

But while others wonder whether Google is moving too quickly in evolving Android, Duarte said he wonders why the rest of the industry is moving so slowly, and promises even faster change to come.

“Using computers suck, to this day,” Duarte said. “It’s one of my daily frustrations that the rate of change in computing experiences is so slow.”

In particular, Duarte said that the basic interaction with programs and files hasn’t changed much. “It’s the same way I did [things] in high school on a Mac Plus.”

One piece of that shift, Durate said, is evolving our expectations of computing devices from a world in which computer users put in information and turn a crank to get a result to one that more resembles an ongoing dialogue.

“What I am looking for is that sense that you get when jazz musicians improvise together,” he said. “The computer should be doing things in concert with you, in support [of] you, not acting like a servant waiting for commands and then returning with results. That’s a little aspirational, I know.”

Honeycomb will get the company partway to that vision, but Duarte said much of that work will reveal itself over time. But make no mistake, he said–although they don’t appear to be the stuff of science fiction, computers are starting to become extensions of the human brain.

“People always think of cybernetics with computers as being this thing that happens far in the future, and you have Star Trek, Borg-like scary things” Duarte said. “But the way computers are used today through social networking, through email, through accessing information like Google–they are already becoming [those] cybernetic parts of our mind.”

Nokia faces some very significant challenges. The game has changed from a battle of devices to a war of ecosystems and competitive ecosystems are gaining momentum and share. The emergence of ecosystems represents the broad convergence of the mobility, computing and services industries. In short, our industry changed, it’s time for Nokia to change faster.

– Nokia CEO Stephen Elop

As Nokia CEO Stephen Elop said during the company’s Thursday earnings call, Nokia faces significant challenges in competitiveness and execution. And nowhere is that more clear than in its recent performance in the smartphone market. Nokia may be the world’s largest smartphone maker, but it’s also the world’s slowest growing. As Bernstein analyst Pierre Ferragu points out this morning, Nokia has been ceding ground precipitously on the smartphone front, with sequential smartphone growth that pales to that of its rivals.

In the November quarter, Nokia’s smartphone shipments grew 7 percent.

Meanwhile,

• Apple’s grew 15 percent
• Research In Motion’s grew 17 percent
• Motorola’s grew 29 percent
• HTC’s grew 34 percent

In the end, Nokia’s smartphone shipments grew at a slower pace than those of its feature phones. Which wouldn’t be so bad if growth in the feature phone weren’t slowing, but it is. Ferragu expects it to decline from 13 percent growth in 2010 to 5 percent growth in 2011.

If ever there was a time for “Nokia to change faster,” as Elop says, it is now. Otherwise…it has a future of continued weakness to look forward to. Says Ferragu, “For the next 12-18 month, there is only one thing we believe Nokia can do: brace. We believe it is difficult to anticipate how badly Nokia’s market position can deteriorate before a new strategy delivers improving fundamentals.”

It’s a radical redesign of the PlayStation Portable and an important one, as it must compete for gamers’ attention not just with Nintendo’s forthcoming 3DS but with gaming-capable smartphones like the iPhone.

“Times have changed, from an era where you had to carry around a dedicated gaming device like the PlayStation Portable to play games on-the-go,” Kaz Hirai, head of Sony’s gaming division said at a launch event today. “Now you can enjoy casual games on cellphones, smartphones, tablet PCs and many other multifunctional portable devices, and these casual gamers are growing rapidly in number….We can’t ignore this market.”

With that in mind, Sony is for the first time ever making PlayStation software titles playable on non-Sony devices. The first step toward that goal is PlayStation Suite, a new cross-platform software framework that will bring Sony titles to Android tablets and smartphones. “Easy-to-play games are becoming big business and this is recognition of that change in the market,” Hirai said. “Our mission is to make PlayStation quality games available on non-PSP devices.”

The NGP is expected at market before the end of the year. No word yet on price. Below, the NGP’s specs in full, as well as its first trailer.

The idea is that instead of parsing through disjointed material, searchers can lean back and have a story told to them about what they’re looking for. The Qwiki results page experience feels like watching a low-budget TV documentary with panned-across stock footage and a robotic voice. (Side note: You probably don’t want to learn how to pronounce things by hearing them on Qwiki.) Eventually these presentations will be created for many more topics, and be playable on a variety of devices.

Palo Alto, Calif.-based Qwiki, which just raised $8 million in Series A funding led by Facebook co-founder Eduardo Saverin, is hedging on the public release by calling it an “alpha.” But the company, which won the TechCrunch Disrupt start-up competition in 2010, says it has “hundreds of thousands” of potential users signed up, of which about 60 percent have been given access so far.

Qwiki CEO Doug Imbruce said in a phone interview that Qwiki has received acquisition offers already, and took funding from individual investors rather than venture capitalists so its founders could retain control of the company and focus on product rather than monetization.

Imbruce emphasized that Qwiki is not a search engine and does not seek to be comprehensive. He said Qwiki plans soon to build its index by letting third-parties input material for new topics, including profiles of individuals.

An example Qwiki for Mount Everest is embedded below:

The Pasadena, Calif.-based company also acquired the independently developed BlackBerry application UberTwitter, adding to its acquisition of Echofon (the Twitter client for iPhone and other Mac devices) at the beginning of the month and Twidroyd (Twitter for Android) in September. Update: On Monday UberMedia said it had acquired an additional company, Mixx, the former competitor to Digg that now curates social media channels for brands.

UberMedia, despite its seemingly perpetual identity crisis, has particular notoriety because its founder and CEO, Bill Gross, first popularized paid search advertising with his company GoTo.com in the late ’90s. When Gross first launched the company last April, he said he’d do the same thing for Twitter.

Since then, Twitter has launched its own ad system and tightened up on permissions for rival ad networks.

UberMedia has let its Twitter account recommendation widgets languish, but says they will be relaunched soon as a new product called FollowMe. Meanwhile, the Twitter clients the company has acquired have a combined three million active users. They are some of the leading independent options, despite somewhat precarious positioning now that Twitter has launched its own official clients for most every platform.

Gross is traveling in Europe this week, but UberMedia COO Jon Kraft got on the phone with NetworkEffect over the weekend to say that there is indeed a method behind all this name-changing and client-acquiring madness. Here’s an edited transcript:

NetworkEffect: Why the name UberMedia?

Kraft: Obviously we’re very excited about the acquisition of UberTwitter, and we felt like our mission had expanded a bit since we first launched. It was really all about this paid search platform, and PostUp was a great name….

And before that you had another name, TweetUp.

Yes, but as we started to grow our business on the client side, we saw ourselves increasingly as a media company. We’re not crazy about the fact that we’ve changed our name twice now, but hopefully we’ll build a company around that brand.

How did this acquisition strategy come about?

We first bought Twidroyd seven months ago, and we really loved what we learned about the way consumers use Twitter.

What is the involvement of the founders of the companies you bought? Are they all running their respective apps?

Obviously a big part of what makes those companies exciting is the passion of the founders, so we encourage them to operate fairly independently.

Who is the staff of UberMedia?

We have some business development to create partnerships, but the vast majority is engineers. We have a little over 40 employees as a distributed team.

And what’s happened to the sponsored Twitter accounts and tweets?

We’re still very excited about what we’re doing with the marketplace, but there are a number of other innovations that we’re planning. The bigger vision is to innovate inside the Twitter ecosystem.

What does that mean in the context of Twitter competing within its ecosystem, especially through Twitter clients? That doesn’t seem like a category other start-ups and investors are investing in as much today.

It’s not easy to organically grow a new Twitter client from scratch, it’s a real challenge. But I think the Twitter platform is still greatly under-leveraged, and there’s surprisingly low penetration of Twitter users today.

But it’s not as if Twitter allows application makers to just make whatever money they want on its platform.

Twitter has been understandably conservative about wanting to protect the user experience across their platform, so we’re being conservative as well and thinking of other ways to innovate and monetize.

What is your company’s relationship with Twitter?

It’s a great relationship. I can’t talk details about what we’re discussing, but the relationship is quite good.

Are you raising more funding? [UberMedia, which launched out of Gross's Idealab, had previously raised $3.5 million from Index Ventures, Betaworks, Revolution, First Round Capital and others.]

We’re not talking about our funding right now, but obviously you have to raise money in order to grow aggressively.

Will you keep acquiring? It seems like you have Twitter clients for most of the major platforms now.

It is possible, but not top of our priority list.

One things you have not had is a problem with agility.

That’s a concise way to put it.

What about Bill Grosss involvement? Is he still CEO or is he doing other Idealab stuff?

Absolutely. He’s head-down 100 percent on this project.

According to comScore, the number of U.S. visitors to Web-based email sites in November 2010 declined six percent compared with the previous year. Email engagement declined even more. Meanwhile, the number of people accessing email from cellphones and the like increased by 36 percent to 70.1 million. And the number who accessed it daily from a mobile device grew 40 percent to 43.5 million. The trend, then, is clear: Mobile email is going mainstream, and fast. Which is great news for companies, such as Apple and Google, that offer standalone mobile email apps, and potentially worrisome for those who don’t.

Not that Web mail is going anywhere. ComScore notes that it remains one of the most popular activities on the Web, reaching about 70 percent of the online population in the States each month. Still, there is a shift occurring. Said Mark Donovan, comScore senior VP of mobile, “In a relatively short period of time, adoption of mobile email has reached 78 percent of the smartphone population, which is very similar to the penetration of Web-based email among Internet users. These findings demonstrate just how quickly channel shifts can occur and why it’s now essential for media brands to have a strong presence in both arenas.”

All the security attention paid in recent years to securing the Windows desktop and the applications running on it have paid off a little, Cisco found, making it harder for computer scammers to successfully carry off their intended crimes on that platform. The trouble is they’re now starting to focus more attention on mobile devices, including Apple’s iPhone and iPad, and devices running Google’s Android operating system, Cisco said.

Meanwhile, the overall global volume of spam, which often contains troublemaking links that are used to deliver attacks, decreased for the first time ever in 2010. Even so, spam still increased in some developed countries where broadband connections are multiplying. In the United Kingdom, spam volume nearly doubled, while the volume in France went up 115 percent. The U.S. saw a slight decline–11.1 trillion messages down from 11.3 trillion in 2009. Spam in Brazil, China and Turkey also declined. Some of the decline can be attributed to last year’s arrest by FBI agents in Milwaukee of a Russian accused of being the “king of spam,” and to the shutdown of a few botnets used by scammers to send spam.

One thing about Cisco’s report that’s likely to draw some attention is its finding that the raw number of vulnerabilities on Apple products appear to be growing. Apple users are usually pretty sensitive about this topic, and any comparison of the Mac to Windows on the security front tends to make them grind their teeth and pound out annoyed comments on tech blogs. I know because I’ve done the same teeth-grinding and have in the past criticized other reports for similar findings.

Here Cisco is addressing vulnerabilities that Apple has itself documented and patched in software updates. One thing that’s not clear to me–though it sure looks like it–is whether Cisco is combining vulnerabilities found on both iOS (iPhone and iPad) and OS X (the Mac). The data it’s using is from its IntelliShield service, which tracks vulnerabilities and security incidents, and shows that over five years Apple’s vulnerabilities rose, from less than 200 in 2006 to more than 350 in 2010. That rate was higher than Microsoft and Hewlett-Packard and Cisco itself, the report found, though it goes on to say that Apple has worked harder than most other vendors to protect its users. Security is one of the reasons Apple imposes such strict rules on what’s available in the App store, though people still jailbreak their phones.

Another trend Cisco found is something called “money muling.” Tom Gillis, VP and general manager of Cisco’s Security business unit, describes money muling as using unsuspecting people who are attracted by “work at home” spam messages and Web ads to participate in money laundering by moving small amounts of money into bank accounts, just a few thousand dollars at a time. He says the operations around this are becoming increasingly elaborate, and criminals will devote a lot of effort to developing it this year.

I talked with Gillis about the report and other security trends that Cisco found. Here are a few highlights from our conversation:

NewEnterprise: So you’re seeing fewer attacks on Windows and more on mobile devices. Is that simply because there are more of them?

Tom Gillis: It’s the simple fact that there’s this new class of mobile device coming into the enterprise that used to be a phone and now it’s a computer, and it can access enterprise information. So what we’re seeing is that the raw number, but not the severity, is down on Windows. Part of this is that Windows 7 was a very good release on Microsoft’s part from a security standpoint. And we’ve got these new devices coming into the enterprise, and so we’re seeing a shift in focus of attacks on these mobile devices. They’re vulnerable to attack and they’re relevant in the enterprise. Two years ago this would have been too small a population to be meaningful.

What kind of attacks are you seeing?

It varies. In some cases there’s a little “phone home” code in a free gaming app. Pretty gentle stuff so far. But as people start using smartphones to access sensitive information we need to start thinking about security considerations on these devices. There’s a larger theme here that the whole nature of attacks is changing dramatically. The fact that spam volumes dropped at all is a big tell. For 10 years this has only gone up. We’re not forecasting a steady decline in spam, but the fact that it slowed down at all is an indicator of the shift in the way that attackers are using email. The attacks are more targeted and personal, for one thing.

Can’t some of this decrease be attributed to some of the arrests that happened last year?

It can. There’s been a handful of arrests. And they went after not only the botnet operators but other parts of the spam value chain. There are firms and entities that build botnets of compromised machines that relay the spam, and then there are other firms and entities that rent time on those botnets that do the merchandising. The biggest category is selling fake pharmaceuticals. Some of these fake pharma operations were shut down and the people associated with them arrested. It’s not an easy thing to do, because they’re global, they move around, and so to make an arrest in this space is a huge accomplishment.

So what is the thinking now about securing the mobile device?

We think there are two ways to make mobile devices work in the enterprise. The flood of devices into the enterprise is huge, and everyone wants to use them to check their email and access corporate directories and other fundamental things. There needs to be some kind of software on the end point–the phone or device. It will have to be light. You can’t have some kind of antivirus suite running on the phone. It would be a little piece of software that’s on all the time that knows when you’re behind the corporate firewall and when you’re not, and manages your connection accordingly. We bought a company called ScanSafe that has 40 data centers around the world. When you’re outside the firewall it connects to you the nearest data center and enforces your corporate policies, but all you as the user know is that it just works. This notion of being on or off the corporate network goes away. And we can do all kinds of scanning for security, independent of the device that’s being used.

This year we also saw the Stuxnet attacks, which we now know for certain were carried out against the Iranian nuclear program. Clearly this is a new kind of attack that can be mounted against industrial control systems via computer networks. Is Cisco researching this?

Massively. Often these types of attacks are targeted against Cisco’s biggest enterprise customers. Who buys Cisco’s infrastructure? The biggest banks in the world, the defense contractors. If the goal of an attacker is to disrupt an economy, their targets will be our customers, and they’re demanding a response from us. I like to call it global threat correlation, but it comes down to taking huge samples of network traffic and picking out good traffic from the bad. Cisco has a good advantage here because our equipment is so widely deployed around the world. As we start measuring traffic we can develop reputation data on every publicly routable IP address on the Internet. As we start putting telemetry info into that equipment–and the customer can choose to enable it or not, and it’s turned off by default. But people turn it on because it helps them against the unknown kind of attacks that are popping up. If a Web server says its a Web server, but you just saw it sending spam three minutes ago, there’s a pretty good chance it’s part of a botnet. Once you know that you know that, you can start to mount a pretty good defense. We’re putting a lot of energy into developing that, and it’s proven to be pretty robust.

Sprint said the charge will help it keep its network running smoothly for all the data-hungry customers, and tried to put some happy talk around what is, essentially, a rate hike.

“Sprint wants its customers to experience the range of entertainment and productivity possibilities available with today’s wireless technology,” Sprint consumer business President Bob H. Johnson said in a statement. “While some of our competitors impose overage charges and complex plans, Sprint continues to provide a worry-free, unlimited data experience while on the Sprint network. This is responsible, sustainable and reflects our commitment to simplicity and value.”

Existing Sprint smartphone customers are not affected unless they upgrade to or activate another smartphone, the company said.

In particular, the company is already working to re-architect its core BlackBerry Enterprise Server product so that it can also be offered as a cloud-based service, to be hosted by either partners or RIM itself.

“We will be launching a cloud service,” RIM Vice President Pete Devenyi told Mobilized in an interview following a Boston event focused on RIM’s 2011 enterprise strategy.

However, Devenyi said the service offered by RIM directly won’t cover as many types of email servers as its software is capable of supporting, leaving room for partners.

“We’re not going to launch a cloud service for everything, for every combination,” he said. “There are going to be mail servers out there that we don’t connect with through our cloud service. There will be other partners that choose to connect to other mail server providers and they may offer a hosted service on their own.”

Partners could even offer a combination of both mail server and cloud-based mobile device management. The company didn’t say when any of the cloud services might launch.

Another area that the company is exploring is whether to expand its software to manage mobile devices from other makers.

“BlackBerry is and will continue to be dominant in most corporations,” Devenyi said. “It’s not going to be the only device, given the fact that consumers have the choice to bring in their own devices, and IT departments are often letting them in. So there’s a question there. Do those corporations have to manage those devices differently or is there the possibility that RIM might extend capabilities to make it easier for those corporations to manage those devices as well.”

That business would not be entirely new. The company started a program years ago called BlackBerry Connect that allowed businesses to use their BlackBerry servers to manage certain devices when those devices communicated using BlackBerry protocols. However, the new venture, if RIM decided to go ahead, would expand that to managing devices that use their own methods.

“In this case, it would have to be done differently because it would be more native,” he said. “It wouldn’t use BlackBerry protocols to manage those devices, but conceptually yes, we did that with BlackBerry Connect.”

Devenyi stressed that although the company is talking about the possibilities in this area, it has nothing to announce.

“It is not something that we would say is never going to happen,” he said. “If enough of our customers really want us to do it, we know that BlackBerry management is far and away the best management console in the world, and if the right thing to do is to extend a subset of those capabilities to be able to manage other devices, it’s worthy of a conversation.”