Nokia Corporation NOK recently  announced that Cloudbear, a growing hosting services provider in the Netherlands, has opted to deploy its state-of-the-art data center networking infrastructure. This collaborative effort aims to optimize Cloudbear’s Kubernetes-based CBWS hosting environment, enabling the company to deliver highly customizable hosting solutions to meet the growing needs of its customers while maximizing operational efficiency.

Digging Deep Into NOK-Cloudbear Deal

Nokia’s comprehensive offering includes its 7220 Interconnect Router, a high-capacity, fixed-configuration solution offering exceptional scale, flexibility, and operational efficiency for data center and cloud networks. As a core component of Data Center Fabric offering, these next-generation platforms are built to address the connectivity and density requirements of web-scale companies, service providers, and enterprises. To further augment its networking capabilities, Cloudbear has implemented Nokia’s flagship 7750 SR-1 router. This router addresses the full spectrum of IP routing requirements, and its highly reliable service delivery mechanisms maximize network stability while minimizing service disruptions. The high-performance routing solution will likely enable service providers to evaluate customer experience across the entire service journey.  

In addition to the infrastructure deployment, Cloudbear has benefited from access to Nokia’s extensive community resources. For instance, the Service Router Linux Network Operating System offers an open, flexible framework that enables automation and provides a customizable foundation for upgrading IP and data center networking infrastructure. Cloudbear has also incorporated Nokia’s open-source Containerlab project to support its CI/CD (Continuous Integration/Continuous Delivery) pipeline implementation. The CI/CD process ensures that pre-tested software changes of all types can be quickly and safely deployed in production, improving efficiency and time-to-market for new services. Access to such advanced capabilities will ensure smooth deployment and reduce operational challenges for Cloudbear.

Does NOK Stand to Gain From the Deployment?

With the emergence of the smartphone market and subsequent usage of mobile broadband, user demand for coverage speed and quality has increased in recent times. Further, to maintain superior performance as traffic increases, there is also a continuous need for network tuning and optimization. Nokia’s expertise in mission-critical networks is well-established, with deployments across more than 2,600 leading enterprise customers in the transportation, energy, manufacturing, webscale and public sector segments worldwide.

This collaboration with Cloudbear is likely to propel the stock with incremental revenue generation and inducement of similar deals from other carriers in the future. The deal is also expected to strengthen Nokia’s position as a leading telecommunications equipment provider in the region.

NOK’s Stock Price Performance

Shares of Nokia have gained 20.1% over the past year compared with the industry's growth of 39.3%.

Image Source: Zacks Investment Research

NOK’s Zacks Rank and Key Picks

Nokia currently carries a Zacks Rank #3 (Hold). 

Some better-ranked stocks in the broader industry have been discussed below.

Plexus Corp. PLXS sports a Zacks Rank of 1 (Strong Buy) presently. It is a leading electronic contract manufacturing services provider to original equipment manufacturers covering a wide range of industries. You can see the complete list of today’s Zacks #1 Rank stocks here.

In the last reported quarter, PLXS delivered an earnings surprise of 20.92%. 

Workday Inc. WDAY carries a Zacks Rank #2 (Buy) at present. In the last reported quarter, it delivered an earnings surprise of 7.36%. 

WDAY is a foremost supplier of enterprise-level software solutions for human resource and finance management. WDAY changes the way analytical insights and contributions to decision-making are made available to businesses by integrating finance and human resources as one system on the cloud. 

InterDigital, Inc. IDCC sports a Zacks Rank of 1 at present. It has a long-term growth expectation of 17.44%

IDCC is a pioneer in advanced mobile technologies that enable wireless communications and capabilities. The company designs and develops a whole range of advanced technology solutions for use in digital cellular, as well as wireless 3G, 4G, and IEEE 802-related products and networks.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Nokia Corporation (NOK) : Free Stock Analysis Report

Plexus Corp. (PLXS) : Free Stock Analysis Report

InterDigital, Inc. (IDCC) : Free Stock Analysis Report

Workday, Inc. (WDAY) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research