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Why Applications and Analytics Are Important to Nokia

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Focus on software business

One of Nokia’s (NOK) key focuses is to build a standalone software business. Its Applications & Analytics business segment has been performing well, and in 1Q17 it posted revenue of 359 million euros. Although sales were flat YoY (year-over-year) in 1Q17, Nokia stated that it has a robust pipeline to drive future revenue.

CEO Rajeev Suri stated that “we continued to make important structural improvements in the quarter, including strengthening our software-focused sales capability, renewing personnel in customer-facing roles, re-architecting our software on a common foundation, and putting the right incentive plans in place to drive a sharper focus on software across all of our customer teams.”

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Acquisition of Comptel

Nokia recently acquired Comptel for a deal valued at 350 million euros. Nokia believes Comptel will strengthen its software portfolio, as it provides solutions in several key areas. Comptel is a specialist in data processing, orchestration, and providing customer engagement applications. This acquisition will boost Nokia’s software portfolio as well as go-to-market capabilities.

Nokia won several IoT (Internet of Things) deals in 1Q17, and continued to lead the self-organizing network market with 98 Eden-NET customers at the end of 1Q17. Furthermore, Nokia added 20 analytics contracts and captured new security deals to help grow its software business.

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