Nokia intends to offer telecom companies a cloud-based software subscription service.

Nokia said on Wednesday that it plans to launch a cloud-based software subscription service aimed at telecommunications companies to provide analytics, security and data management software.

Many tech companies have been moving toward a subscription model from licensing in advance to building a predictable, recurring business.

While part of Nokias’ software portfolio will be offered under subscription starting this year, more will be commercially available in early 2022.

When Nokia created its software division in 2016, the idea was to subscribe too, but we never did, Senior Vice President Mark Bunn said in an interview.

“Now we have executed it … we have built underlying technology to be able to operate at scale, “he said.

A cloud-based software platform can reduce costs, facilitate deployment and management, and customers can test the platform before committing to long-term use.

Nokia, which has been in talks with potential clients, said it is targeting an addressable market of $ 3.1 billion (roughly Rs. 23,060 crore) for the period 2021-2025, with an annual growth rate of around 25- 30 per cent.