Will Nokia dare to release a Windows-powered device?

Here’s a rumor that keeps cropping up: Nokia Corp. (NOK) plans to introduce a device running on Microsoft Corp.’s (MSFT) Windows Phone 7 operating system.
While the move would be a monumental shift for Nokia it’s one that has reportedly gained traction now that the Finnish handset giant is run by its new CEO Stephen Elop, a former Microsoft executive. The two companies are already talking about pairing up, according to Mobile Review.
As is stands now, Nokia-branded devices running Microsoft software would be distributed globally by Nokia. Even with a former Microsoft executive at the helm, a Nokia device running anything other than a Nokia-backed OS would be major.
Although some might applaud the move, it could also do more harm than good simply by implying what many have said for years: Nokia is ill equipped for the next wave of smart phones.
Nokia has struggled to introduce a smart phone OS that can stand its own against the more modern operating systems out there now, but the same could be said for Microsoft until very recently.