SAN JOSE, Calif. – Nokia (HE:) is enhancing its security and operational efficiency by deploying Zscaler, Inc.’s (NASDAQ: NASDAQ:) Zero Trust Exchange platform, a move aimed at bolstering its cloud capabilities. With a market capitalization of $31.36 billion and an impressive InvestingPro Financial Health score of “GOOD,” Zscaler’s platform is designed to connect users directly to applications, reducing the corporate network’s exposure and thereby shrinking the potential for cyber threats.
Previously, Nokia utilized a mix of hardware and virtual firewalls, which presented challenges in maintaining uniform security controls across various environments. The shift to Zscaler’s cloud-native solution reflects Nokia’s strategic modernization towards an identity-based, location-independent access model. Zscaler’s strong market position is supported by its robust revenue growth of 30.77% and industry-leading gross profit margins of 78.03%.
Zscaler’s Secure Access Service Edge (SASE) solution is expected to streamline Nokia’s operations, diminish latency, and enhance security, aligning with the company’s cloud-first strategy. The platform includes over 160 data centers worldwide, aiming to provide Nokia’s workforce with secure, high-performance connectivity.
The key components of Nokia’s Zscaler deployment include Zscaler Internet Access (ZIA), which offers AI-powered secure web gateway services, and Zscaler Private Access (ZPA), intended to replace traditional VPNs. Additionally, Zscaler Digital Experience (ZDX) will assist Nokia’s IT team in monitoring and resolving connectivity issues to ensure productivity.
Nokia anticipates significant operational and security benefits from the Zscaler platform, which integrates with its cloud solutions for scalability and adaptation to evolving security requirements. The initial deployment phase has already demonstrated potential improvements in end-user connectivity.
Zscaler’s CEO, Jay Chaudhry, expressed enthusiasm for the partnership with Nokia, highlighting the platform’s AI-powered security capabilities and the expected advancements in threat detection, response, and user experience.
This collaboration is a part of Nokia’s broader commitment to security and digital transformation, which is supported by Zscaler’s focus on customer value. The information for this report is based on a press release statement.
In other recent news, Microsoft Corporation (NASDAQ:) reported a 16% year-on-year increase in Q1 FY2025 revenue, reaching $65.6 billion. Piper Sandler analysts, following the 2025 CIO Survey, anticipate a rise in IT spending, benefiting tech firms such as Microsoft, which is expected to see increased Azure spending. Zscaler, a leader in cloud security, also witnessed positive developments with several firms, 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 surpassed guidance, leading to an optimistic revision of the financial forecast for fiscal year 2025. Despite the announced retirement of Zscaler’s CFO, analysts maintain a positive outlook for both Microsoft and Zscaler’s future growth and profitability. These are the latest developments in the tech sector.
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