Nokia 2015 Annual Report Download - page 19

Business overview
17NOKIA IN 2015
We are well-positioned to lead the change
inour industry, which is undergoing rapid
technological development and continuous
disruption, driven by some key trends:
■Unprecedented increase of data, driven
byconsumer demand for video, social
networking and other Cloud-based services
that are increasingly accessed through
mobile devices;
■Ongoing digitization of business processes
as well as people’s lives, generating vast
quantities of data that need to be analyzed
and managed, as services and entire
industries become ever more connected
through Cloud-based applications and
IoTbecomes a reality;
■Demand and stricter guidelines for
enhanced network and application
securityand privacy to protect individuals,
businesses, public services and national
interests that are all increasingly reliant
onconnectivity and data;
■The convergence of disparate network
technologies—across mobile, fixed, and IP
and optical networks—to enhance network
performance and profitability and simplify
networking services; and
■The convergence of telecommunications
and IT domains, as networks become
increasingly virtual, managed through
software applications and platforms via
theCloud, decoupled from hardware and
increasingly connected to open-source
ecosystems through application
programming interfaces (“APIs”).
As the industry changes, so does the market
opportunity. Operators are facing slowing
growth of wireless subscribers, declining
revenues per user from connectivity services,
and ever-increasing demand for data that
isdriving trac on their networks. While
driving network eciency is key, scaling the
subscriber base and diversifying service
provision are also critical.
In parallel, enterprises and webscale players
are requiring greater exibility with network
infrastructures to adjust to the convergence
of IT and telecommunications technologies,
and to take advantage of the scalability
andeciency that Cloud-based software
platforms oer.
To address these opportunities, we are
focusing our strategy in four areas:
1. Leading in network infrastructure,
converging mobile, xed, IP and optical
networks, optimized by and for the Cloud
2. Expanding in adjacencies and gaining
software leadership for network
optimization, service innovation, and
customer experience enhancement
3. Diversifying by providing network
performance and exibility for large-scale
enterprises
4. Leveraging new business opportunities
created through the Internet of Things
“We can leverage the strength of our complete
and converged portfolio to help our customers
tocapitalize on the opportunities from an
industry in transition.”
All the use cases outlined below will provide
opportunities for new business models for
the players in the IoT ecosystem and create
new pockets of revenue growth for network
vendors such as us. We believe we can
leverage the strength of our complete and
converged portfolio of network infrastructure,
software, services and advanced technologies,
to help our customers—telecommunications
operators, governments, enterprises and
webscale players—to capitalize on the
opportunities from an industry in transition.