Nokia (NOK) Unveils Vision to Boost Future Network Architecture
Nokia Corporation NOK unveiled its Technology Strategy 2030, aimed at addressing the critical components that will shape the next phase of digital transformation over the next seven years. With the growing proliferation of advanced technologies industrywide, businesses will require robust and reliable networks to support advanced use cases in the sphere of AI-ML, extended reality, digital twins, automation and constant evolution of connectivity.
Nokia’s technology vision aims to lay the foundation for creating a future network architecture that is sustainable and can match the escalating throughput and latency criteria for such advanced applications. This network should demonstrate high flexibility, enabling quick adaption to dynamic service demands and seamless integration with various business operating models.
Nokia's initial approach focuses on exploring key emerging trends and identifying a suitable set of network technologies that can mitigate complexities and unlock new possibilities by enhancing synergies between the human, physical and digital worlds. The Technology Strategy 2023 emphasizes AI, cloud, metaverse, Internet of value, industry 5.0, and API networks as the key trends.
By 2030, the world will witness a surge of new connected devices. These highly affordable, easy-to-install, power-efficient devices will propel mass metaverse expansion across consumer, enterprise and industrial sectors. Supply chains and manufacturing facilities will also witness extensive evolutions. Enterprises will interact with distributor systems in real time to efficiently plan and estimate the supply needs. From design to testing, real-time monitoring and remote maintenance, the metaverse will transform the way manufacturing operations work at all stages.
The businesses are also witnessing the emergence of web3, the decentralized, user-centric Internet infrastructure built on blockchain technology. Cloud Computing and Advanced AI have already become foundational requirements in organizations' digital transformation journey. However, the deployment of multi-cloud architecture, the use of AI-embedded devices for developing cutting-edge business models and resource optimization are expected to gain further momentum in the years ahead.
According to Nokia's Global Network Traffic 2030 report, end-user data traffic demand is estimated to grow between 22% and 25% annually from 2022 to 2030. It is projected that global network traffic will range from 2,443 to 3,109 exabytes per month by 2030. As the distinction between the digital and physical world continues to blur in the upcoming years, organizations and service providers will increasingly adopt technologies that significantly augment network traffic requirements.
Nokia offers a comprehensive view based on real-world experience and in-depth research on how to capitalize on the opportunities presented by these transformative technologies. Advanced, dynamic and intelligent network infrastructure that can sense, think and act will be critical for this venture. The Technology Strategy 2030 places a strong emphasis on network-wide AI, facilitating real-time performance optimization, zero-touch automation, customer experience analytics, advanced security, privacy features and more.
The network architecture will incorporate a digital twin system with diverse APIs, empowering service providers and enterprises with valuable situational awareness, ensuring streamlined management of various interconnected infrastructures and effective life cycle management. By breaking static boundaries of network and cloud, the strategy aims to enhance user experience while ensuring affordability, productivity and seamless collaborations. Leveraging these cutting-edge features of future networks will unlock the unprecedented potential that technology innovation can offer humanity, and Nokia is positioning itself at the forefront of this transformation.
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, it is transforming the way people and things communicate and connect with each other.
The stock has declined 23.7% in the past year compared with the industry’s fall of 11%.
Nokia currently has a Zacks Rank #4 (Sell).
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