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Cyanogen is working with Microsoft to deeply integrate Cortana into the next version of Cyanogen OS

Cortana On Cyanogen: CEO Kirt McMaster On Building The Next Great Smartphone OS  —  Cyanogen is attempting to be the first player to truly disrupt the smartphone duopoly of iOS and Android

International Business Times David Gilbert

Context & Ripple Effects

Cyanogen has spent 2015 positioning itself as the anti-Google Android: a fork that ships without Google apps, starting with the Blu device outlined in its earlier disruption plans. The strategy is financed by Microsoft's minority stake in its $70M+ funding round, which already produced a bundling agreement covering Bing, Skype, Office and other services with removable apps and contextual suggestions (April's Microsoft integration deal).

The Cortana announcement deepens that arrangement from pre-installed apps to an assistant woven into the OS layer itself — exactly what a fork without Google apps needs to differentiate. CEO Kirt McMaster frames it as an attempt to break the iOS-Android duopoly, making Microsoft the default services provider of the challenger platform.

First-order effects

  • Microsoft gains distribution for Cortana on handsets where Google Now is absent or replaceable, while Cyanogen gets a flagship differentiator for its next OS version beyond app bundling.
  • Google faces its first serious in-Android rival at the assistant layer, since Cyanogen's whole pitch is an Android experience stripped of Google services.

Second-order effects

  • OEMs shipping Cyanogen OS — OnePlus One among them — can market a Google-free Android, pressuring other budget makers like Blu to choose between Google's terms and Microsoft-backed alternatives.
  • Other Android forks and smaller OEMs gain leverage in negotiations with both Google and Microsoft, as the assistant layer becomes a licensable component rather than a fixed part of stock Android.

Third-order effects

  • If the pattern holds, smartphone competition shifts from hardware specs to who controls the assistant and services layer atop Android, with Microsoft buying influence over the open-source base Google cannot fully close.
  • A credible non-Google Android stack would give regulators and carriers a structural alternative to the duopoly McMaster targets, though execution risk on Cyanogen's side is real.

The trend: Voice assistants are moving from apps to operating-system layers, with Microsoft using investment and licensing to place Cortana inside Android forks rather than building its own phone OS.