STOCKHOLM, (Reuters) – Nokia (NYSE:), announced Wednesday that it will launch a subscription-based cloud-based service for software providers to telecom companies. The services are designed to provide software related data management, security, and analytics.

Many tech companies are moving towards a subscription model, which is a way to get predictable revenue and avoid upfront licensing.

Nokia’s entire software collection will be available for subscription starting this year. However, there will be more commercially viable options in the early part of 2022.

In an interview, Mark Bunn, senior vice president, stated that the original idea behind Nokia’s 2016 software division was to offer subscriptions. However, we have never done so.

He said, “Now that we’ve executed it…we have developed the technology necessary to allow us to work at scale.”

Cloud-based software platforms can reduce costs and make deployment and management easier. Customers can also test the platform before they commit to long-term usage.

Nokia, which has been in discussions with potential customers, said it is targeting an addressable market of $3.1 billion for the 2021-2025 period, with an annual growth rate of about 25-30%.