n existing 109 000 square foot facility in Newark California and represents an investment of somewhere between $500 million and one billion dollars. At the same time Microsoft have announced upgrades to the X Box 360 including the ability to access live TV programs from Sky TV in the UK, Canal+ in France and Foxtel in Australia with presumably the intention of inking similar deals with providers in the USA and in parallel started marketing the Microsoft My Cloud. 3 In May 2011 Microsoft spent $8 billion dollars buying the Skype telephone service and rumours in the Press started circulating about their intent to buy Nokia's handset business, now with a market value less than HTC, the Taiwan-based manufacturer of smart phones. Five years earlier this would have seemed an unlikely scenario with Nokia consolidating its dominance in the handset market. Unfortunately for Nokia the company proved overreliant on Symbian, its home-grown operating system and failed to realise the scale of the impact that the introduction of the iPhone would have on the smart-phone market and Nokia's position in 1 http://www.apple.com/uk/icloud/?cid=mc-uk-g-clb-icloud&sissr=1. http://www.datacenterknowledge.com/archives/2010/02/22/first-look-apples-massive-idatacenter 3 http://www.microsoft.com/en-us/cloud/default.aspx?fbid=_7o8c0rKG39. Making Telecoms Work: From Technical Innovation to Commercial Success, First Edition. Geoff Varrall. © 2012 John Wiley & Sons, Ltd. Published 2012 by John Wiley & Sons, Ltd. Making Telecoms Work that market. Competition at the lower end of the market in developing countries further eroded market share and margin. In 2010 Stephen Elop formerly President of Microsoft's business division and prior to that COO of Juniper Networks, Adobe Systems and Macromedia joined Nokia as President and CEO. Microsoft were themselves trying to work out a response to the shift that had occurred in the last quarter of 2010 when smart phones started outselling personal computers. (Approximately 100 million smart phones against 94