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2017-01-24

NOKIA: Nokia analysis demonstrates significant financial benefits for large enterprises moving to a private cloud from a legacy IT environment

* Enterprise Private Cloud Total Cost of Ownership (TCO) model forecasts a
minimum of 25 percent savings - over five years - on overall IT costs for
large enterprises that adopt a private cloud versus a legacy IT
environment; break-even in less than three years
* Analysis applies to OpenStack®-based private clouds, coupled with software
defined networking (SDN) technology and built with off-the-shelf components
from a range of vendors
* Nokia offering a custom analysis free of charge for large enterprises from
now until June 30, 2017

24 January 2016

Espoo, Finland - Most large enterprises can save a minimum of 25 percent on
their IT costs over five years by moving to a private cloud from a legacy IT
environment, according to a financial analysis conducted by Nokia. The
analysis, known as the 'Nokia Enterprise Private Cloud TCO Model' - the first
of its kind in the industry - also demonstrates that enterprises can expect
to break even on their private cloud investment in less than three years.

Advocates of enterprises moving to private cloud have typically focused on the
operational and business benefits that this approach can offer, in terms of
flexibility, agility and the ability to scale quickly. The analysis
underlying the Enterprise Private Cloud TCO Model is among the first
available in the market that exclusively explores the question that is most
critical to IT managers - what are the cost benefits of this move? The model
shows that the common assumption that private cloud is too difficult or
costly to adopt is wrong, and that large enterprises should make the move
directly to private or public-private hybrid cloud because it utilizes
off-the-shelf components and is less expensive.

The analysis began with an existing budget for a representative legacy IT
environment, and contrasted that with the requirements of a shift to a
private cloud model and associated costs. More specifically, the analysis
takes the overall operational budget of the enterprise data center
(eliminating costs that will be largely the same in either scenario such as
facilities costs - power, rent, air conditioning/heating), and then provides
a high-level breakout by the software or operational tasks performed. The
breakout was then used to calculate potential cost impacts - both increases
and decreases - for a cloud environment.

Nokia's financial model is based on a private cloud, or private-public hybrid
cloud architecture that can be built at any large enterprise today,
incorporating commercial components from a variety of vendors as well as open
source components including OpenStack® cloud management software. The model
also assumes that the cloud architecture is one that does not require
'forklift' replacement of the IT environment, but instead sits on top of the
existing IT infrastructure as an overlay. As a result, it also assumes a
deployment strategy that would minimize changes to day-to-day IT operations.

Leading industry analyst firm IDC validated the model overall, including the
ranges of potential increased and decreased costs by category.

Randy Perry, Vice President, Business Value Strategy, IDC, said:
"IDC has conducted an extensive analysis of the structure and operation of the
Nokia Enterprise Private Cloud TCO Model. We are satisfied that the
assumptions, all supported by 3rdparty references, are reasonable and
comprehensive enough to establish a fair comparison of total costs of private
cloud and legacy environments. Also, the industry data and default settings
fall within acceptable ranges based on IDC business value research with over
450 enterprises over the last two years. Finally, the algorithms and
methodology for calculating cost savings are accurate and adhere to commonly
accepted financial guidelines."

Mike Loomis, head of the large enterprise segment at Nokia, said:
"The Private Cloud TCO Model we are introducing today is an industry first.
Most advocates for the deployment of a private or hybrid cloud in large
enterprises focus their arguments on the benefits offered by a cloud
approach, be it faster deployment times for new applications, a more flexible
approach to deploying and managing their resources and similar claims. While
these claims in many cases are legitimate, our model differs by addressing
the core concerns most enterprise IT managers have: is this move worth the
investment, and are the savings really there? Our analysis provides a
resounding 'yes'. Better yet, IDC, a highly respected analyst firm, agrees."

Lauren Sell, Vice President Marketing and Community Services, OpenStack
Foundation, said
: "More and more enterprises are embracing OpenStack-powered private clouds
for their performance advantages and their cost savings - both over public
clouds and proprietary private clouds. The Private Cloud TCO Model developed
by Nokia is the latest example of OpenStack community members creating
valuable and validated tools that can help enterprises as they plan and
execute their strategies for agile, open cloud."

The cost savings identified by the model were calculated using the most
conservative assumptions available, based on the needs of highly regulated
industries such as finance and healthcare. Further, increased costs, such as
the costs of migrating legacy applications to the cloud, were calculated at
the upper end of a possible range of values. Therefore the overall 25 percent
cost savings can be considered a minimum baseline - actual savings in
practice would likely be considerably higher.

Today, the Nokia Enterprise Private Cloud TCO Model offers a generic analysis
of likely cost savings for large enterprises. For enterprises that are
interested, it can quickly be modified to incorporate a particular
enterprise's data and deliver not only a custom savings but also a budgeting
estimate by cost category. Nokia will perform such analysis tasks without
charge for large enterprises from now until June 30, 2017.

Resources:

* NokiaOpenStack solutions page
* Nokia Private Cloud TCO Model InfoGraphic
* Nokia Private Cloud TCO Model Video
* White Paper: Stairway to Cloud: 9-Step Blueprint to a Best Practices
Private Hybrid Cloud for your Enterprise

Connect with Nokia:

* Subscribeto receive information on specific areas of interest
* Website
* Blog
* LinkedIn
* Twitter
* Facebook
* Instagram
* Periscope
* YouTube
* Glassdoor

About Nokia

Nokia is a global leader in creating the technologies at the heart of our
connected world. Powered by the research and innovation of Nokia Bell Labs,
we serve communications service providers, governments, large enterprises and
consumers, with the industry's most complete, end-to-end portfolio of
products, services and licensing.

From the enabling infrastructure for 5G and the Internet of Things, to
emerging applications in virtual reality and digital health, we are shaping
the future of technology to transform the human experience.www.nokia.com

Media Enquiries:

Communications
Phone: +358 (0) 10 448 4900
E-mail:press.services@nokia.com

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This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: NOKIA via Globenewswire

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