Nokia is going to launch a cloud-based software subscription service thought and developed, according to Reuters, for telecommunications companies. Specifically, so that they can count on analytics, security and data management software services. It thus joins companies that have already changed their business model, in whole or in part, towards one more focused on subscriptions, with the aim of having more regular, predictable and recurring income.
It is not the first step that Nokia takes towards the model of software as a service, since the company has been immersed in the launch of subscription services for business software for some time. Of these, several will already be offered before the end of this year, and in early 2022 several more will arrive. They will leave the software division that Nokia launched in 2016, already with the intention of offering subscription services, something that it has not launched until now.
According Mark Bunn, Vice President of Nokia, «now we have executed it …. we have developed the underlying and necessary technology to be able to do it, and create them and be able to operate at scale«. The company has taken the step because it believes that with this type of software-based platform services, the company’s customers can lower costs and facilitate the deployment and management of services. In addition, with them, Nokia customers can test the platform before committing to long-term use.
The company thus seeks to diversify operations and improve its level of recurring income. For now, he is conducting negotiations with potential clients for this service, and assures that it is aimed at a market of about 3,100 million dollars, in the period between this year and 2025, with an annual growth rate that would be between 25 % and 30%.