Sponsored By

Will Nokia Appreciate AlcaLu's Nuage?Will Nokia Appreciate AlcaLu's Nuage?

Nuage is a big deal in SDN, with a strong product and significant customers. Will Nokia value the business?

Mitch Wagner

April 16, 2015

5 Min Read
Will Nokia Appreciate AlcaLu's Nuage?

With the pending purchase of Alcatel-Lucent, Nokia gets a strong position in the emerging SDN market. But will Nokia value what Nuage has to offer?

Nokia Corp. (NYSE: NOK) said Wednesday it plans a €15.6 billion (US$16.6 billion) takeover of Alcatel-Lucent (NYSE: ALU), approved by both companies' boards of directors. As part of the Alcatel-Lucent package, Nokia gets ownership of Nuage Networks , a wholly owned AlcaLu subsidiary that's been making strides in SDN. (See Nokia & Alcatel-Lucent: What's Going On? and Nokia Makes €15.6B Bid for Alcatel-Lucent.)

It's like buying a used car and finding a nice set of golf clubs in the trunk.

"Nuage can only be helped by having the weight of Nokia behind it," says Roz Roseboro, Heavy Reading senior analyst. "Nokia doesn't have a similar product, nor a very compelling SDN/data center story, on its own, so no worry about anything getting rationalized away."

The acquisition will also help Nokia beef up its NFV offerings, Caroline Chappell, Heavy Reading principal analyst, says.

"On the NFV front, Nuage can and will work with any third-party vendor's NFV MANO stack as well as AlcaLu's own CloudBand. Nokia, however, needed to flesh out its NFV MANO stack -- it developed a VNF Manager very early on but didn't have the full orchestration capabilities of CloudBand and knew it needed to develop them," Chappell says. "The merger will mean it no longer has to -- it will be able to augment its own [OpenStack talent] with AlcaLu's considerable CloudBand expertise -- and given the difficulties of finding and keeping OpenStack talent, that has to be good news. Also excellent for CloudBand -- one fewer potential orchestration rival and access to Nokia's base of NFV customers."

In other words, Nuage is kind of a big deal in SDN.

Brief history

Nuage launched its Virtualized Services Platform in 2013, automating the data center network and creating secure "slices" for each user group or tenant while reducing provisioning time from days to seconds. The VSP controls both virtualized and non-virtualized infrastructures, allowing network operators to set policies across the network. It's designed to help service providers and enterprises implement cloud services.(See Alcatel-Lucent Spins Up Its SDN and Nuage Unveils SDN Gateway.)

Read more about:


About the Author(s)

Mitch Wagner

Executive Editor, Light Reading

San Diego-based Mitch Wagner is many things. As well as being "our guy" on the West Coast (of the US, not Scotland, or anywhere else with indifferent meteorological conditions), he's a husband (to his wife), dissatisfied Democrat, American (so he could be President some day), nonobservant Jew, and science fiction fan. Not necessarily in that order.

He's also one half of a special duo, along with Minnie, who is the co-habitor of the West Coast Bureau and Light Reading's primary chewer of sticks, though she is not the only one on the team who regularly munches on bark.

Wagner, whose previous positions include Editor-in-Chief at Internet Evolution and Executive Editor at InformationWeek, will be responsible for tracking and reporting on developments in Silicon Valley and other US West Coast hotspots of communications technology innovation.

Beats: Software-defined networking (SDN), network functions virtualization (NFV), IP networking, and colored foods (such as 'green rice').

Subscribe and receive the latest news from the industry.
Join 62,000+ members. Yes it's completely free.

You May Also Like