Nokia Software to Expand IoT Impact with Acquisition
Bhaskar Gorti, the president of Nokia Software, said in a recent interview with Techcrunch.com that Nokia is getting out of the digital health care business and is becoming more hands-on in IoT by acquiring SpaceTime Insight for an undisclosed amount. SpaceTime Insight was valued at $103 million in 2016.
“All devices [eventually] have to connect,” Gorti said. “IoT is strategic for us, and we are moving in this direction.” Nokia is building an IoT network that it plans to offer to service providers. “It’s a multi-prong strategy to address the market segment.”
IoT today is a fairly small part of Nokia’s business: the company reported over €23 billion in annual revenues last year. Of that, the software division reported only €1.6 billion of business, and IoT will sit somewhere within that.
SpaceTime will help Nokia tap into using more AI, the key to operating IT services, but also brings new customers.
“Over the last few years have been selling networking products in hardware and software to industries like utilities and transportation, and this will help us move up the value chain, addressing other business problems our customers have,” Gorti said.
Rob Schilling, CEO of SpaceTime Insight will lead Nokia’s IoT unit, which he said he plans to accelerate and scale for the next generation of IoT solutions.
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