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Nokia (NOK) to Deploy Digital Operations Software in India

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Nokia Corporation (NOK - Free Report) recently inked an agreement with Lightstorm to deploy its Digital Operations software across India for network automation services. The deal for an undisclosed amount will facilitate Lightstorm to generate incremental revenues by offering Network-as-a-Service (NaaS) solutions to its enterprise customers and power the digital economy of the subcontinent.

Lightstorm operates India’s first carrier-neutral network infrastructure platform and has built first-of-its-kind utility-grade resilient fiber network, SmartNet, connecting the major economic hubs in the country. This, in turn, has laid the foundation for digital infrastructure that provides open, transparent & neutral access to the cloud & Internet. The company now aims to deliver a seamless user experience with end-to-end automation of network systems and is pioneering the deployment of Nokia’s cloud-native Digital Operations software. This will enable Lightstorm to establish itself as a greenfield operator in India’s NaaS market with the installation and configuration of an entirely new network setup.  

The Digital Operations software is a fully cloud-native platform that is built to support multi-vendor, multi-domain, and multi-technology environments across any cloud deployment model. It enables network automation and leverages industry standard protocols to minimize the time required to onboard new customers by processing connectivity orders in seconds and enabling the delivery of complex new enterprise services in minutes. The service is reportedly about 500 times faster than conventional business models. In addition, it offers closed-loop automation that identifies problems up to eight times faster than legacy systems for swift responses. The software will be deployed on Amazon Web Services, the cloud computing platform of Amazon.com, Inc. (AMZN - Free Report) .

By unlocking network efficiencies with common operability, software delivery, and increased hardware sharing, Nokia has been able to reduce the total cost of ownership for mobile operators. The company is well-positioned for the ongoing technology cycle given the strength of its end-to-end portfolio. Its installed base of high-capacity AirScale product is growing fast.

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 the software and services to manage them. Leveraging state-of-the-art technology, Nokia is transforming the way people and things communicate and connect with each other. These include seamless transition to 5G technology, ultra-broadband access, IP and Software Defined Networking, cloud applications, and Internet of Things.

The company facilitates its 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, and improve efficiency. Nokia remains focused on building a robust scalable software business and expanding it to structurally attractive enterprise adjacencies. It has inked 189 commercial 5G contracts across the globe. The company’s end-to-end portfolio includes products and services for every part of a network, which are helping operators to 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.

The stock has gained 43.1% in the past year compared with the industry’s rally of 14.3%.

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We remain impressed with the inherent growth potential of this Zacks Rank #3 (Hold) stock. Some better-ranked stocks in the industry are Clearfield, Inc. (CLFD - Free Report) , sporting a Zacks Rank #1 (Strong Buy), and Ubiquiti Inc. (UI - Free Report) , carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Clearfield delivered a trailing four-quarter earnings surprise of 49%, on average.

Ubiquiti has a long-term earnings growth expectation of 32.9%. It delivered an earnings surprise of 20.5%, on average, in the trailing four quarters.


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