Finnish network and equipment company Nokia said it entered a multi-year agreement with Alphabet Inc.’s Google Cloud to migrate its global data centers and servers.
The five-year deal is the biggest corporate win for the U.S. tech firm, and it also helps Nokia to save money for buying new hardware. It also reflects Nokia’s transition to cloud-first IT technology to better serve its customers.
In addition to IT servers and data centers, the Finnish company will also move software applications to the Google Cloud for expanded collaboration efforts for employees. Since everyone’s working at home amid a pandemic, the need to upgrade to a better cloud storage system is a priority.
The company’s digital operations can also improve because of this deal, as Nokia employees can utilize Google Cloud’s products and services. With applications running in the public cloud, key members can do their job efficiently.
To ensure a smooth and secure migration of data and applications, Google Cloud will deploy strategic systems integrators, along with solutions experts and engineers.
Given this new deal, Nokia can now move away from the less efficient data centers and servers it rents across a dozen countries. While financial details about the deal aren’t disclosed, the Finnish network company likely saves more with the Google Cloud deal.
“The agreement is expected to drive meaningful operational efficiencies and cost savings over time due to a reduction in real estate footprint, hardware energy consumption, and hardware capacity purchasing needs,” said Nokia in a statement.
VP for Global IT Infrastructure Ravi Parmasad notes how the company is going to the digital transformation path when everything’s changing rapidly. By collaborating with Google, Nokia can enhance how it operates and do business.
“This is crucial for how our employees collaborate so that we continue to raise the bar on meeting the needs of our customers. Given Nokia’s digital ambitions and plans, this is an ideal time for Nokia to be taking this step with Google Cloud to accelerate our efforts,” said Parmasad.
In dealing with data centers, the company has to buy and invest in new hardware, but it will ‘break the cycle’ as it tandems with Google. Using Alphabet Inc.’s infrastructure-as-a-service portfolio, Nokia can enjoy computing, networking, and storage solutions.
Google also works alongside other telecommunications firms like AT&T, bringing storage solutions to greater heights.