Nokia will dismantle its own data centers and relocate its IT infrastructure to Google Cloud. The two companies have signed a five-year contract. Migration has started and is expected to take 18 to 24 months.
Cloud first at Nokia
Nokia has been working with Google for a number of years and under the leadership of the new CEO Pekka Landmark the company opted for a full 'cloud first' strategy . According to the Finnish company, Google Cloud's broad infrastructure-as-a-service portfolio with its computing, network and storage solutions offers the necessary flexibility, speed and availability that Nokia cannot provide with its on-premise data centers.
Nokia expects switching to the cloud will enable operational cost savings. Due to the 'as-a-service' model, the company no longer has to purchase, install and manage its own hardware and underlying applications and it can cut back on energy consumption. Google's large-scale data centers are more efficient in this area than Nokia's dozen locations around the world, most of which have come with acquisitions. The telecom company can also reduce real estate costs by divesting these locations.
Cost reduction would be welcome at Nokia, since the company must invest heavily in its 5G network product portfolio in rivalry with Ericsson and Huawei. This year, Nokia considered selling certain business units or entering into mergers with other players. One of the more remarkable candidates for this is Microsoft.