On Monday, Nokia told that it acquired SpaceTime Insight, a California based IoT startup where predictive analytics are provided on algorithms of machine learning. It is a software maker that manages millions of devices across the networks of the industrial customers. There was no disclosure about the terms of the deal. Reuters said that SpaceTime supplies the customers of energy, utilities, transportation, logistics sectors various monitoring and analytics applications to successfully run operations with cost effectivity by reduction of the need to send the repair trucks out and service outages.
SpaceTime's customers include FedEx, U.S. electric utilities Entergy, Singapore Power, No.2 U.S. rail operator Union Pacific. The CEO of SpaceTime will join IOT (Internet of Things) within the software business group of Nokia. According to data sourced by Crunchbase, $50 million was raised in private funding. Startup backers include the energy giant E.ON, Zouk Capital, Novus Energy Partners, etc. Measuring the importance of this deal for Nokia, Rob Schilling, who was the CEO of SpaceTime, will now be the head of Nokia's IoT unit. Nokia from its hardware products under traditional communications wants to build an empire of standalone software business for higher profits margin delivery. Several acquisitions including this were made as part of a strategy of small to medium-sized plans.
Nokia Software President Bhaskar Gorti, stated in a phone interview, “This is an expansion into the B2B side of the industry. IoT is strategic for us, and we are moving in this direction”, to the internet and industrial customers regarding sales beyond core telecom markets. While 80% of sales sold on a standalone basis, only 20% sales are tied to Nokia, both to non-telecom customers and network operators. In 2017, Nokia software generated over 1.6 billion euros. It paid $370 million to buy Comptel, a year ago, to strengthen its business at telecom network. Reuters state that, in 2016, Nokia was ranked 2nd among the telecom software suppliers with a 10% share of the highly fragmented market.