Nokia Turns to Zscaler to Modernize Security Architecture and Accelerate Cloud Transformation Initiatives

Rhea-AI Summary

Nokia has selected Zscaler (NASDAQ: ZS) to deploy its Zero Trust Exchange™ platform, marking a significant shift from traditional hardware and virtual firewalls to a cloud-native security solution. The implementation includes Zscaler Internet Access™ (ZIA™), Private Access™ (ZPA™), Digital Experience™ (ZDX™), and Data Protection services.

The platform will connect users directly to applications without exposing the corporate network, operating through more than 160 globally distributed data centers. This transition aims to enhance Nokia's security posture, simplify IT operations, and accelerate cloud-first initiatives while moving towards identity-based, location-independent application access.

Positive

• Strategic partnership with major tech company Nokia validates Zscaler's enterprise-level capabilities
• Platform deployment across Nokia's global operations expands Zscaler's market presence
• Implementation includes multiple Zscaler products (ZIA, ZPA, ZDX, Data Protection), indicating strong product adoption

Negative

• Phased implementation suggests delayed revenue recognition
• Benefits and cost reductions are still expected rather than realized

Insights

Technology Analyst

This strategic partnership marks a significant win for Zscaler, as Nokia's adoption of their Zero Trust Exchange platform demonstrates the growing enterprise demand for cloud-native security solutions. The deal validates Zscaler's market position in the SASE space and showcases their ability to win large, multinational clients. Nokia's migration from traditional firewalls to Zscaler's comprehensive suite, including ZIA, ZPA and ZDX, represents a full platform adoption that should generate substantial recurring revenue. The deployment across Nokia's global operations, leveraging Zscaler's 160 data centers, indicates a large-scale implementation that could serve as a compelling reference case for other enterprise customers considering similar digital transformation initiatives.

Cybersecurity Expert

Nokia's shift from traditional IP-based security to Zscaler's identity-based zero trust architecture represents a significant technological leap. The implementation addresses critical security challenges in modern distributed workforces by eliminating network exposure and reducing the attack surface. The comprehensive deployment including advanced data protection and AI-powered threat detection positions Nokia to better handle evolving cybersecurity threats. This transition from legacy VPNs to a cloud-native security model demonstrates the broader industry trend toward SASE adoption, particularly among large enterprises managing complex global operations. The emphasis on user experience alongside security improvements suggests a well-balanced approach that could accelerate similar transformations across the industry.

B2B Technology Innovation Leader Nokia Selects Zscaler to Enhance Security Posture, Simplify IT Operations, and Expedite Cloud-First Initiatives

SAN JOSE, Calif., Dec. 17, 2024 (GLOBE NEWSWIRE) -- Zscaler, Inc. (NASDAQ: ZS), the leader in cloud security, today announced that Nokia, a multinational technology leader in pioneering networks, digital services and applications, is deploying the Zscaler Zero Trust Exchange™ platform to enhance its security, operational efficiency, and cloud capabilities.

The Zscaler platform is a cloud-native security solution that connects users directly to applications and workloads without exposing the corporate network, thereby reducing the attack surface and enhancing overall cybersecurity and compliance posture. Zscaler’s platform is built to provide secure, fast connections from any device, anywhere, at any time.

Legacy Challenges Lead to Strategic Modernization
Nokia previously relied on a combination of traditional hardware and virtual firewalls across data centers, offices, and cloud environments. With the traditional IP-based security approach, maintaining uniform security control across all branch offices and across all applications and platforms was complex. “Now we are moving towards identity-based, location-independent, application access, with a zero trust security approach without compromising on user experience,” said Nishant Batra, Chief Strategy & Technology Officer at Nokia. “With our push towards a cloud-first model, it became evident that we needed a security architecture capable of supporting this evolution efficiently and securely.”

Traditional firewall solutions lack the agility to deliver true zero-trust security, impacting the optimization of digital and cloud transformation initiatives. Nokia’s adoption of Zscaler’s Secure Access Service Edge (SASE) solution aligns with its goal to streamline operations, reduce latency, and elevate security without the limitations of traditional solutions.

A Future-Focused Approach with Zscaler’s Zero Trust Exchange Platform
Nokia has selected Zscaler due to Zscaler’s robust, multi-cloud SaaS platform, which provides extensive public edge coverage and an application-centric approach to zero-trust. Zscaler’s platform includes more than 160 globally distributed data centers to optimize performance and ensure highly available, seamless and secure access for Nokia’s global workforce.

Key components of Nokia’s deployment include:

• Zscaler Internet Access™ (ZIA™): Delivering secure, zero-trust access directly to the internet and SaaS applications through an AI-powered secure web gateway.
• Zscaler Private Access™ (ZPA™): Replacing VPNs with direct, secure access to private applications from any device or location.
• Zscaler Digital Experience™ (ZDX™): Enabling Nokia’s IT team to quickly detect and resolve user experience issues, ensuring seamless connectivity and productivity.
• Zscaler Data Protection: Securing sensitive data through advanced inspection and threat prevention capabilities.

Transformative Benefits for Nokia’s Cloud-Centric Initiatives
By implementing the Zscaler platform as part of a phased journey, Nokia expects to realize substantial benefits from both an operational and a security perspective. The platform’s ability to integrate seamlessly with Nokia’s cloud solutions allows for easy scalability and rapid adaptation to Nokia’s evolving security needs.

Nokia has already witnessed the potential for a significantly improved end-user connectivity experience in the initial rollout phase. “Our team was particularly impressed with the seamless user experience provided by Zscaler, which advanced our performance and productivity from day one,” said Batra.

With Zscaler, Nokia is planning to streamline security infrastructure, reduce operational costs, and provide a foundation for further digital transformation.

"As the leader in cloud security, Zscaler is thrilled to partner with Nokia on their journey towards a Zero Trust architecture," said Jay Chaudhry, CEO, Chairman, and Founder of Zscaler. "Zscaler’s AI-powered cloud security platform is helping Nokia accelerate their implementation of a modern security model that will deliver superior threat detection and response while significantly reducing costs and providing improved user experiences. Nokia’s commitment to security and cloud transformation, combined with Zscaler’s dedication to delivering unparalleled customer value, we will help ensure industry-leading security, performance, and productivity for its employees, partners and customers.”

To learn more about Zscaler’s Zero Trust Exchange and how it supports digital transformation, visit https://www.zscaler.com/.

Forward-Looking Statements
This press release contains forward-looking statements that are based on our management's beliefs and assumptions and on information currently available to our management. These forward-looking statements include the expected benefits of Nokia’s Zscaler deployment. These forward-looking statements are subject to the safe harbor provisions created by the Private Securities Litigation Reform Act of 1995. A significant number of factors could cause actual results to differ materially from statements made in this press release, including those factors related to our ability to successfully implement and deploy our solutions to promote Nokia’s cloud security transformation initiatives. Additional risks and uncertainties are set forth in our most recent Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission (“SEC”) on December 5, 2024, which is available on our website at ir.zscaler.com and on the SEC's website at www.sec.gov. Any forward-looking statements in this release are based on the limited information currently available to Zscaler as of the date hereof, which is subject to change, and Zscaler will not necessarily update the information, even if new information becomes available in the future.

About Nokia
At Nokia, we create technology that helps the world act together.

As a B2B technology innovation leader, we are pioneering networks that sense, think and act by leveraging our work across mobile, fixed and cloud networks. In addition, we create value with intellectual property and long-term research, led by the award-winning Nokia Bell Labs.

With truly open architectures that seamlessly integrate into any ecosystem, our high-performance networks create new opportunities for monetization and scale. Service providers, enterprises and partners worldwide trust Nokia to deliver secure, reliable and sustainable networks today—and work with us to create the digital services and applications of the future.

About Zscaler
Zscaler (NASDAQ: ZS) accelerates digital transformation so customers can be more agile, efficient, resilient, and secure. The Zscaler Zero Trust Exchange™ platform protects thousands of customers from cyberattacks and data loss by securely connecting users, devices, and applications in any location. Distributed across more than 160 data centers globally, the SASE-based Zero Trust Exchange™ is the world’s largest in-line cloud security platform.

Media Contacts
Natalia Wodecki
press@zscaler.com

FAQ

What security products is Nokia implementing from Zscaler (ZS)?

Nokia is implementing Zscaler's Zero Trust Exchange platform, including Zscaler Internet Access (ZIA), Private Access (ZPA), Digital Experience (ZDX), and Data Protection services.

How many data centers does Zscaler's (ZS) platform utilize for Nokia's implementation?

Zscaler's platform includes more than 160 globally distributed data centers to support Nokia's global workforce.

What security challenges is Nokia addressing with Zscaler's (ZS) platform?

Nokia is addressing challenges with traditional IP-based security, moving towards identity-based, location-independent application access with zero trust security approach.

What benefits does Nokia expect from implementing Zscaler's (ZS) platform?

Nokia expects to streamline security infrastructure, reduce operational costs, improve end-user connectivity experience, and create a foundation for further digital transformation.