Will Nokia Bounce Back with its Cloud Routers?

Nokia, the embattled cell phone manufacturer, has come up with a new set of routers that it claims will lay the foundation for future technologies such as 5G and the Internet of Things.

In an announcement made by the company, it said that Nokia has made ground-breaking innovations that’ll give more opportunities for service providers to build powerful networks. These are powered by the new FP4 silicon, which is the world’s first multi terabit chipset. It is touted that this chipset is six times more powerful than existing network processors, and this could propel faster speeds for networks.

Two products built on these chipsets are 7750 Service Router and 7950 Extensible Routing System. The first one is expected to transmit 144 terabits per second while the latter can transfer 576 terabits in a second, provided they are in a single system.

Nokia said that these new routing platforms make modern networks more adaptable, faster and safer than before, and at the same time, delivers improved network security and intelligence. These platforms can signal the arrival of the next generation of technologies that include deep learning, machine learning, AI, IoT and more.

A common aspect of all these emerging technologies is the need for handling large amounts of data and “teaching” machines to learn from this data. This obviously requires bigger and faster networks and this is exactly where Nokia is placing its bets.

This brings up the big question of why Nokia chose these routers instead of other lines of business?

For starters, this is one area that Nokia that considerable experience and the other is that it forecasts IP traffic to go to 330 exabytes a month by 2022.

This is why with this new platform, Nokia wants to get back into the business and resurrect its brand name and operations. Though Nokia was one of the leading manufacturers of cell phones, it fell out of favor from customers after the emergence of companies like Samsung that were able to get more powerful smartphones to the market within a short time.

So, is this the right product for Nokia? Will it help the company to become an important player in the technology sector in the future?

Apparently not, according to analysts at Wells Fargo who believe that Nokia needs to do a lot more to get back into the networking business. These analysts contend that service providers are not ready to embrace this high-speed chipsets and platforms yet, so it may take time for Nokia to see the implementation of its new products.

Also, these analysts are skeptical about the ability of service providers to put these platforms to the best use. This means, though Nokia’s new platform can transfer a minimum of 144 terabits per second, will the surrounding infrastructure allow it is a big question.

In the meantime, it makes sense for Nokia to focus on more near-term products that can get some money flowing into its coffers while keeping these platforms as its long-term strategy.

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