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Nokia Announces About Acquiring SpaceTime InSight

Nokia has made several small to medium-sized acquisitions as part of a strategy to build up a standalone software business to deliver higher profit margins than its classic communications hardware products.

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Nokia has made several small to medium-sized acquisitions as part of a strategy to build up a standalone software business to deliver higher profit margins than its classic communications hardware products.
Headquarter of Nokia, wikimdedia commons

Nokia said on Monday it has acquired software maker SpaceTime Insight, which industrial customers use to manage millions of devices and assets across their networks, marking the equipment supplier’s latest push to expand beyond telecoms.

Terms of the deal were not disclosed.

SpaceTime supplies monitoring and analytics applications to customers in the energy, logistics, transportation and utilities sectors to run operations more cost effectively by reducing service outages and the need to send out repair trucks.

Among the more than two dozen major customers of SpaceTime, a decade-old Silicon Valley-based company, are FedEx, No. 2 U.S. rail operator Union Pacific, U.S. electric utilities Entergy and NextEra Energy and Singapore Power, Nokia said.

SpaceTime Insight and Rob Schilling, its chief executive, will join the Internet of Things (IoT) product unit within the Nokia Software business group. The company has raised around $50 million in private funding, according to Crunchbase data.

Nokia has made several small to medium-sized acquisitions as part of a strategy to build up a standalone software business to deliver higher profit margins than its classic communications hardware products.
Software Matrix, Pixabay

Nokia has made several small to medium-sized acquisitions as part of a strategy to build up a standalone software business to deliver higher profit margins than its classic communications hardware products.

“Traditionally, most networking companies built software to sell more networking equipment,” Nokia Software President Bhaskar Gorti said in a phone interview. “This is an expansion into the B2B side of the industry,” he said of sales beyond its core telecom markets to internet and industrial customers.

Only around 20 percent of its sales are tied to Nokia telecom equipment, Gorti said, with the remaining 80 percent sold on a standalone basis, both to network operators using rival equipment or, increasingly, to non-telecom customers.

Nokia Software generated just over 1.6 billion euros in revenue in 2017. Three months ago, Nokia renamed the group, previously known as Applications & Analytics, to reflect its growing importance alongside its mainstay network gear business.

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A year ago, it paid around $370 million to buy Comptel, beefing up its business aimed at telecom network operators.

Nokia ranked No. 2 among telecom software suppliers with a 10 percent share of the highly fragmented market, according to 2016 data from industry research group Analysys Mason.

Huawei held 11 percent, Ericsson 9 percent and Amdocs and Oracle, each held 8 percent. (IANS)

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Nokia Plans to Cut Jobs, Says Slow 5G Progress Not Cause For Layoffs

Headquartered in Espoo, Finland, Nokia currently employs 100,000 people worldwide, 6,000 of them in Finland

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Nokia
Nokia to cut jobs, says slow 5G progress not cause for layoffs.

Finnish telecommunication giant Nokia on Tuesday announced its plans to cut jobs, media reported.

Nokia gave 350 as a layoff target in Finland, and said the figures in France and Germany would be higher, but did not specify.

However, the company denied that the cuts would be related to the slower than expected launch of 5G technology, Xinhua news agency reported.

Instead, the aim is to make operations more efficient as the consolidation after the purchase of the French Alcatel-Lucent has been completed.

Tommi Uitto, director in charge of Nokia’s operations in Finland, said the changes are “necessary”. The cutbacks are part of 700-million-euro (about $798.7 million) savings announced in October 2018. Thereafter Marc Rouanne, one of the key directors, left the company.

In line with the government's Digital India programme, Nokia on Wednesday launched a "Smartpur" digital village project with the aim of developing 500 digitally integrated villages across the country in five years.
Nokia gave 350 as a layoff target in Finland, and said the figures in France and Germany would be higher, but did not specify. Pixabay

In France, the General Confederation of Labour (CGT) accused Nokia on Tuesday of attempting to improve profitability through shifting work to countries where labour costs are lower than in France.

Finnish daily Helsingin Sanomat quoted the union as saying that Nokia has broken its 2016 promise to the then finance minister Emmanuel Macron that staff size at Alcatel-Lucent and Bell Labs would remain at 4,200 for two years.

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CGT claimed that Nokia had also broken its pledge to employ 2,500 new staffers in research and development. Helsingin Sanomat economics writer Petri Sajari said the French unions could turn the Nokia cutbacks against President Macron.

Headquartered in Espoo, Finland, Nokia currently employs 100,000 people worldwide, 6,000 of them in Finland. (IANS)