SAN JOSE, CA – Nokia (HE:) is enhancing its security and operational efficiency with the deployment of Zscaler, Inc.'s Zero Trust Exchange platform. (NASDAQ: NASDAQ:), a move aimed at enhancing its cloud capabilities. With a market capitalization of $31.36 billion and a “good” financial health score from InvestingPro, the Zscaler platform is designed to connect users directly to applications, reducing corporate network exposure and thus reducing the potential for cyber threats.
Previously, Nokia used a mix of hardware and virtual firewalls, which presented challenges in maintaining uniform security controls across different environments. The shift to a cloud-native Zscaler solution reflects Nokia's strategic modernization towards an identity-based, location-independent access model. Zscaler's strong market position is supported by its strong revenue growth of 30.77% and industry-leading gross margins of 78.03%.
Zscaler's Secure Access Service Edge (SASE) solution is expected to streamline Nokia's operations, reduce latency and enhance security, in line with the company's cloud-first strategy. The platform includes more than 160 data centers around the world, with the goal of providing Nokia's workforce with secure, high-performance connectivity.
Key components of Nokia's Zscaler deployment include Zscaler Internet Access (ZIA), which provides secure AI-powered web gateway services, and Zscaler Private Access (ZPA), which aims to replace traditional VPNs. In addition, Zscaler Digital Experience (ZDX) will help Nokia's IT team monitor and resolve connectivity issues to ensure productivity.
Nokia expects significant operational and security benefits from the Zscaler platform, which integrates with its cloud solutions for scalability and adaptability to evolving security requirements. The initial deployment phase has already demonstrated potential improvements in end-user connectivity.
Jay Chowdhury, CEO of Zscaler, expressed his excitement about the partnership with Nokia, highlighting the platform's AI-powered security capabilities and expected advancements in threat detection and response and user experience.
This collaboration is part of Nokia's broader commitment to security and digital transformation, which is supported by Zscaler's focus on customer value. The information in this report is based on a press release.
In other recent news, Microsoft Corporation (NASDAQ:) reported a 16% year-over-year increase in revenue for the first quarter of fiscal year 2025, to $65.6 billion. Piper Sandler analysts, after surveying IT managers for 2025, expect a rise in IT spending, which will benefit technology companies such as Microsoft, which is expected to see an increase in spending on Azure. Zscaler, a leading cloud security company, also saw positive developments with several companies, including BMO Capital Markets, RBC Capital Markets, and KeyBanc Capital Markets, maintaining positive ratings and raising their price targets. Zscaler's first-quarter billings and revenue growth exceeded guidance, leading to an upbeat revision to the financial outlook for fiscal 2025. Despite the announced retirement of Zscaler's CFO, analysts maintain a positive outlook on future growth and profitability for both Microsoft and Zscaler. These are the latest developments in the technology sector.
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