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Nokia (NOK) to Spur AirFrame by Leveraging Intel (INTC) Processors

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Given the unprecedented demand for 5G devices and machines globally, establishing a scalable and streamlined network infrastructure has become a dire necessity. To deploy such 5G networks quickly, Nokia Corporation (NOK - Free Report) will incorporate Intel Corporation’s (INTC - Free Report) 3rd Generation Xeon Scalable Processors in its avant-garde AirFrame data center solutions.

This combination will not only drive Nokia AirFrame’s compute capacity but also enable superior data throughput with reduced energy consumption. Interestingly, Nokia and Intel have been sharing a working relationship for quite some time now, and the addition of the Intel Xeon Scalable Processors in Nokia’s hardware will further boost the long-standing partnership.

Markedly, the Finnish telco equipment vendor is focused on four strategic priorities. The first is leading in high-performance end-to-end networks with its service provider customers. The second priority is to expand network sales to select vertical markets, specifically energy, transportation and webscale players. Building a strong standalone software business is the third priority. The final priority is creating new business and licensing opportunities in the consumer ecosystem.

At a time when majority of the service providers are shifting toward high-capacity networks and evolving technologies in the 5G era to accelerate the convergence of telco and IT sectors, Nokia AirFrame data center solution comes as a boon on the back of a distributed cloud-based architecture. The innovative hardware addresses latency restrictions and provides network operators the flexibility to create compact and efficient cloud computing data center with adequate workflow tools.

It is devised for handling complex virtualized and cloud-native software workloads that support high throughput and low latency telco applications. Impressively, the solution has the ability to strategically deploy data centers at prime locations supported by interoperable cloud solutions. Intel’s Xeon Scalable Processors are specifically designed to back data centers. Equipped with the potential of managing network workloads from core to edge, the platform can overcome computing challenges with utmost flexibility.

On the virtue of such trailblazing features, the upgraded AirFrame products can support Nokia’s 5G Cloud Core and 5G AirScale Cloud RAN solutions to deliver high bit rates for unique services while catering to the dynamic 5G technologies with extreme scalability and operational efficiencies. As part of this expanded partnership, AirFrame will capitalize on Intel’s Ethernet adapters and accelerators, which are some of the integral elements of the Xeon Scalable Processors.

This, in turn, is likely to aid network operators with an optimized solution driven by a streamlined 5G network infrastructure. The Finnish entity stated that it will enhance its AirFrame products depending on the availability of the Intel processors. Nonetheless, the latest move not only highlights Nokia’s commitment to reinforce its AirScale platform but also harness the best of innovative silicon chip design technologies to boost its progressive 5G portfolio.

Nokia is well positioned for the ongoing technology cycle, given the strength of its end-to-end portfolio. The company is driving the transition of global enterprises into smart virtual networks by creating a single network for all services, converging mobile and fixed broadband, IP routing and optical networks with software and services to manage them.

The company has a strong foothold in all 5G early adopter markets. It currently has 152 commercial 5G deals with communications service providers. The company aims to accelerate its product roadmap and cost competitiveness through additional 5G investments. 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.

The stock has returned 23.5% compared with the industry’s growth of 64.5% in the past year.

Nokia currently carries a Zacks Rank #2 (Buy).

Some other top-ranked stocks in the industry are Ubiquiti Inc. (UI - Free Report) and Sierra Wireless, Inc. (SWIR - Free Report) . While Ubiquiti sports a Zacks Rank #1 (Strong Buy), Sierra Wireless carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Ubiquiti delivered a trailing four-quarter earnings surprise of 37.1%, on average.

Sierra Wireless has a long-term earnings growth expectation of 12.5%.

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