Is Nokia’s MSSP, MDR Security Business Up for Sale?
Nokia may be looking to sell its managed services business, but we don’t know if the potential asset sale could include the company’s MSSP and MDR (managed detection and response) security service capabilities.
Nokia has spent recent months turning around its core telecom network equipment business while pushing deeper into the 5G wireless market. The strategy may include selling off a managed services business unit that generates about $510 million in annual revenue, Bloomberg reported.
Nokia Managed Security and MDR Services Explained
In addition to offering business transformation and analytics services, Nokia also offers managed security services — including managed detection and response (MDR) for 5G security. The managed security services also span:
- Assessment services;
- Security infrastructure management;
- Vulnerability management;
- Secure configuration and hardening;
- Audit and compliance management;
- Security control lifecycle management; and
- SW and application security services.
We don’t know if the managed security services are part of the potential asset sale. MSSP Alert has reached out to Nokia for comment, and will update this article if we receive information to share.
MSSP and MDR Security: Mergers, Acquisitions and Investments
Meanwhile, M&A and venture capital activity remain strong in the MSSP and MDR markets. Track all MSSP mergers and acquisitions here. Also, these MDR security companies have raised money in recent months:
- February 2022: eSentire raised $325 million in funding, surpassed $100 million in annual recurring revenue (ARR) and achieved unicorn status.
- November 2021: Expel raised $140.3 million in Series E funding and become a unicorn.
Demand for MDR security is expected to remain strong late into this decade. Indeed, the market for managed detection and response (MDR) security services will reach $2.2 billion by 2027, which represents a 16.7% CAGR (compound annual growth rate) from 2021, according to Infinity Business Insights.