Microsoft and mobile phone giant Nokia this morning confirmed plans to bring mobile versions of Microsoft Office and related programs to Nokia smartphones running the Symbian operating system. Their newfound alliance puts a new spin on the worldwide competition for market share on consumer and business devices -- a fact illustrated clearly in a conference call with Nokia and Microsoft executives.

Microsoft Business Division president Stephen Elop disputed a reporter's suggestion that the deal is an acknowledgement that Windows Mobile won't ultimately prevail in the market. Asked if the arrangement was designed to create more competition for Apple's iPhone, Nokia Devices executive vice president Kai Oistamo said he believes it poses a bigger threat to Research in Motion's Blackberry devices.

"It is way beyond just email, way beyond just Office. It is really reshaping the industry, really creating future solutions," Oistamo said. "If any company should be worried about this, this is about really creating a formidable challenge about RIM rather than anybody else."

Both executives said Windows Mobile and Symbian will continue to compete at the same time the companies collaborate on productivity and communications software.

Apart from mobile versions of Word, PowerPoint, OneNote and Excel for Nokia phones, the companies will collaborate on programs including the Office Communicator client for mobile on Symbian. Microsoft's SharePoint portal and collaboration software will also factor into the alliance, Elop said. Nokia said Office Communicator Mobile for Symbian will be rolled out next year, followed by other programs.

It's part of Microsoft's effort to extend the reach of its Office software beyond the PC to the Web and devices. The companies also say they will collaborate on future products that they have yet to announce. These are some of the upcoming features and capabilities listed by the companies in the announcement:

The ability to view, edit, create and share Office documents on more devices in more places with mobile-optimized versions of Microsoft Word, Microsoft PowerPoint, Microsoft Excel and Microsoft OneNote

Enterprise instant messaging and presence, and optimized conferencing and collaboration experience with Microsoft Office Communicator Mobile

Mobile access to intranet and extranet portals built on Microsoft SharePoint Server

Enterprise device management with Microsoft System Center

Elop noted that it's the first time Microsoft has announced a rich version of Microsoft Office for a mobile platform other than Windows Mobile phones. However, the company's Mac Business Unit has scheduled a conference call for Thursday morning, amid speculation that the company may be offering a version of Office for Apple's iPhone, as well.