ESPOO, Finland – Nokia announced the launch of Aurelis for Data Centers, a Passive Optical Network-based solution for out-of-band management in data centers, according to a press release statement. The Finnish telecom equipment maker, which generated $23.4 billion in revenue over the last twelve months, continues to expand its infrastructure portfolio as a prominent player in the Communications Equipment industry.

The system reduces the number of active switches by 90% compared to traditional architectures and delivers power savings of 50% or more, the company stated. Nokia claims the solution simplifies operational effort by 80%. The company maintains a healthy gross profit margin of 44.7%, supporting continued investment in innovative solutions.

Out-of-band management provides a secure control path to monitor and manage server infrastructure in data centers. Traditional OOBM architectures use dedicated per-rack switches, which Nokia says adds complexity and increases power and cooling demands.

The Aurelis solution includes the MF-2 Optical Switch, which connects thousands of devices in a point-to-multipoint architecture. The system also features optical modems that terminate fiber and convert signals into Ethernet ports, typically mounted at the top of racks. A Command Center management platform is designed to interface with data center controller and automation systems.

The PON optical switch offers six nines availability and includes zero touch provisioning for installation. The solution incorporates AI-enabled troubleshooting and automated operations to reduce manual work and minimize on-site visits.

« Aurelis is already deployed in over 700 mission critical enterprise networks and is ideally suited to help data centers become more resilient and efficient, » said Geert Heyninck, General Manager of Broadband Networks at Nokia. InvestingPro analysis suggests Nokia is currently undervalued, with the stock trading below its Fair Value estimate—placing it among potential opportunities on the most undervalued stocks list. Subscribers gain access to comprehensive Fair Value analysis and 10 additional ProTips for Nokia.

Chris DePuy, analyst and co-founder of 650 Group, noted that « PON-based OOBM reflects a broader industry shift towards a simpler, greener, fiber-based architecture. »

The solution targets AI and cloud providers seeking to establish out-of-band management functions while reducing space, power and operational costs as data centers scale.

In other recent news, Nokia has announced an expansion of its partnership with TIM Brasil to enhance the operator’s 5G network across 14 states, covering about 42% of Brazil’s population. This agreement will see the deployment of Nokia’s AirScale portfolio, including advanced radio solutions and network automation technologies aimed at reducing operational costs. Additionally, Nokia focused on AI RAN technology in collaboration with NVIDIA at the Mobile World Congress, although no new partnerships were announced at the event.

Morgan Stanley has upgraded Nokia’s stock from Equalweight to Overweight, citing growth potential in AI and Cloud technologies. The investment firm raised its price target to EUR6.50, reflecting Nokia’s evolving revenue composition following its acquisition of Infinera. AI and Cloud now account for 6% of Nokia’s revenues, with growth noted at approximately 1 percentage point each quarter. These developments highlight Nokia’s strategic focus on emerging technologies and partnerships to drive future growth.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.