Nokia Corporation NOK launched a new operating system with an advanced set of tools for data center networking to accelerate the expansion of cloud footprint and boost traffic growth. Nokia Service Router Linux (SR Linux) and Nokia Fabric Services Platform (FSP) are the integral components of this avant-garde automation and operations toolkit. As the application of 5G networks expand globally, the achievement will enable the company to assist various businesses and service providers with a revamped cloud platform and data center equipment to facilitate enhanced networking.
Nokia’s SR Linux is an open network operating system (NOS) that is a vital component of Data Center Fabric solution. The platform enables the data centers to be more flexible and scalable with simplified operations. Equipped with streamlined interfaces, SR Linux modernizes the data center network with IP routing features and capitalizes on an open architecture approach to support new-age applications. Nokia FSP is based on modern architecture framework that enables webscale companies and service providers to support intent-based automation at scale for all phases of data center fabric operations. The FSP complements SR Linux NOS and manages workloads faster with efficient fabric operations.
The third element of Nokia’s data center operations is its switch hardware, which consists of Nokia 7250 Interconnect Router, Nokia 7220 IXR-D series and Nokia 7220 IXR-H series. The combined solution will likely promote robustness and application development flexibility for a connected infrastructure. With major technological shifts like Industry 4.0, telecom companies need an efficient data center fabric solution that enables easy access to the NOS infrastructure to customize networks and workloads. Reportedly, Apple AAPL uses Nokia’s data center offerings in its Viborg, Denmark facility. Also, Equinix EQIX and BT Group have expressed their interests for the adoption of this technology.
Nokia is leaving no stones unturned to reinforce its position in the data center switching sector as it competes with the likes of Cisco CSCO, Juniper and Arista. Leveraging its industry-rich experience of developing optical technologies, Nokia is positioned to benefit from the ongoing technology cycle, given the strength of its end-to-end portfolio. It facilitates customers to move away from an economy-of-scale network operating model to demand-driven operations by offering easy programmability and flexible automation needed to support dynamic operations, reduce complexity as well as improve efficiency.
The Finland-based telecom equipment vendor is focused on building a robust scalable software business and expanding it to structurally attractive enterprise adjacencies. The company’s end-to-end portfolio includes products and services for every part of a network, which help operators enable key 5G capabilities, such as network slicing, distributed cloud and industrial IoT. Accelerated strategy execution, sharpened customer focus and reduced long-term costs are expected to position the company as a global leader in the delivery of end-to-end 5G solutions. However, macroeconomic and competitive dynamics continue to impact its performance.
Nokia’s shares have returned 28.3% compared with the industry’s growth of 18% in the past three months. This Zacks Rank #2 (Buy) stock has topped earnings estimates twice in the last four quarters. It has a trailing four-quarter positive earnings surprise of 129.1%, on average. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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