Yesterday we posted that Nokia were in negotiations with Microsoft with a view to adopting the Windows Phone 7 operating system for future Nokia smartphone, and well today confirmation has now come that Nokia and Microsoft will partner in a “strategic alliance.”

According to an article over on Engadget and by way of Nokia Conversations, Nokia CEO Stephen Elop along with Microsoft CEO Steve Ballmer announced Nokia’s adoption of Windows Phone 7 at their London event today.

Thus, Windows Phone will now become “primary smartphone strategy” with Nokia innovating on the mobile platform is such areas as imaging. Apparently Nokia’s Ovi Maps will become the core of Microsoft mapping and will be integrated into Bing, which will also provide search.

As for Nokia’s content store, well apparently that will be integrated into the Microsoft Marketplace, while new Nokia devices will now support Xbox Live and Microsoft Office.

Ballmer and Elop have put out an open letter on the partnership over on Nokia Conversations, and a short video of the announcement, which we have for your viewing pleasure below.

So there it is, good or bad, Nokia has now partnered Microsoft and will move forward in the hopes of regaining the high ground in the mobile space against Android and Apple, but can they achieve it?