In the fast-moving world of tech, reinvention is often talked about but rarely executed well. The tale of Nokia - once a Finnish paper mill, then a mobile phone titan, and now a telecom infrastructure player - is a rare example of corporate metamorphosis.

But as it attempts a third major pivot into cloud software and AI services, the question is not whether Nokia has changed before. It’s whether it can do so again in a world that no longer gives second chances lightly.

And as investors know all too well, it’s a challenge playing out not just in Europe - but across Asia-Pacific too, where reinvention is no longer optional, but expected.

 

From Snake to software

Nokia’s latest reinvention was turbocharged by a headline-grabbing $1bn investment from chip giant Nvidia. On paper, the transformation makes sense: shifting from lower-margin hardware (base stations, radio kits, etc.) to software-led services that help telcos and enterprise clients adopt AI and cloud solutions.

Think of it as Nokia trying to become the Accenture of the telecom world - a shift that plays neatly into the global “softwarisation” of infrastructure.

But ambition and execution are two very different things. Just weeks after Nvidia’s backing briefly lifted the share price, the bounce evaporated. The market, it seems, remains unconvinced (at the moment).

 

And perhaps with good reason?

Across APAC, we’ve seen legacy companies try - and sometimes stumble - as they enter unfamiliar growth verticals. Japanese automakers are venturing into autonomous systems. South Korea’s chipmakers are pivoting into AI. Reinvention is not just about capital; it’s about culture, and that’s where the cracks often appear.

 

A new market, new rules

Unlike hardware, where Nokia and Ericsson have operated in a near duopoly in many Western markets post-Huawei bans, the software world is far more open, fast-moving, and fiercely contested. Samsung, Amazon Web Services, and countless specialised cloud integrators are already circling the same telecom transformation budgets that Nokia is now targeting.

Yes, Nokia forecasts the software market it wants to serve will grow at 16% per year, reaching €24bn by 2028. But that optimism may mask just how low its current starting point is. Despite a threefold increase in cloud and data centre orders this year, Nokia’s revenue share remains modest. And it’s telling that rival Ericsson continues to command a significantly larger slice of the pie.

We’ve seen similar narratives unfold in Asia. In China, legacy state-owned enterprises have raced to reposition themselves as AI-first - with mixed results. In Southeast Asia, former industrial conglomerates are acquiring FinTech platforms to stay relevant in the digital economy. Reinvention is no longer radical; it’s survival.

 

Why this reinvention is harder than the last two

What makes this third act so difficult isn’t just competition - it’s the erosion of Nokia’s incumbency advantage. In mobile phones, it once defined the category. In telecoms infrastructure, it inherited leadership when political winds shifted. But in cloud software, it starts as a challenger, not a gatekeeper. That means winning new clients on merit, not legacy.

And Nokia’s legacy client base - telecom operators - are tightening their belts. Telefónica, for example, is reducing capex from 14.5% of revenue to 12% by 2028. For Nokia, that’s a near €1bn shortfall in potential sales from one client alone. As spending stalls in its core base, the urgency to diversify intensifies.

Compare that to the APAC region, where digital investment is still growing, but expectations are ruthless. In India and Singapore, for example, investors reward bold growth stories but swiftly punish execution missteps. The lesson is clear: in this phase of transformation, operational agility isn’t a nice-to-have. It’s a baseline requirement for survival.

 

Can old dogs learn cloud tricks?

The real tension here is strategic identity. Can a 150-year-old company accustomed to long-term R&D cycles and national infrastructure procurement cultures suddenly move at the speed of software?

Nokia’s strength has always been in high-reliability engineering - the kind that underpins global communication networks. But cloud and AI solutions demand agility, service design, and client intimacy. These aren’t just new capabilities - they represent a cultural shift. It’s not clear whether Nokia has the internal muscle memory to act like a cloud-native partner, rather than a traditional vendor.

That said, Nokia has surprised markets before. Its journey from timber to telecoms to tech is proof that legacy doesn’t always equal stagnation. And in APAC, some of the world’s oldest businesses are managing the same balancing act - from Japan’s conglomerates to Australia’s legacy banks embracing embedded finance.

 

The bottom line

So, can the dinosaurs of business really reinvent themselves? Nokia is about to find out - in real time, and under real pressure.

Its pivot into software-led services may be visionary, but vision alone won’t cut it. Success will depend on speed, culture, and whether an old powerhouse can truly think and act like a start-up.

So what is the lesson for legacy firms - in Europe, in Asia, and everywhere else?

Reinvention isn’t about heritage. It’s about proving relevance - again and again

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