Tata Elxsi, Red Hat ink pact to boost telco network monetisation; stk up 2%

The uptick in share price came after Tata Elxsi announced that it has collaborated with Red Hat to boost telecom network monetisation

Tata Elxsi share price rises: Shares of Tata Elxsi soared as much as 1.95 per cent to hit an intraday high of Rs 7,373.75 per share, on Friday. 

However, the stocks were trading off highs. At 11:00 AM, shares of Tata Elxsi were trading 0.94 per cent higher at Rs 7,300 per share. In comparison, BSE Sensex was trading 0.12 per cent higher at 76,901.80 levels.

The uptick in share price came after Tata Elxsi announced that it has collaborated with Red Hat, a software company, to monetise applications and reduce operational expenditures through simplifying operations in 5G networks for Telcos and enterprises.

“As we enter the era of 5G in automotive, healthcare, and Industry 4.0, telcos are at the forefront, crafting customer-centric services and embracing new technologies. This shift demands a move towards cloudification, multicloud adoption, intelligent cognitive network operations and automation. We are delighted to enable this transition alongside Red Hat, driving Telco 5G Multi Cloud Automation and edge intelligence to provide our clients with unique services,” said Vivek Tiwary, vice president and head of telco 5G business at Tata Elxsi.

Boosting 5G monetisation

Tata Elxsi and Red Hat collaboration aims to expedite the monetisation of 5G networks. Their joint effort establishes a use case factory to assist global operators in capitalising on their networks through tailored 5G applications across various industries like transportation, manufacturing, and healthcare. 

For instance, as the automotive sector increasingly shifts towards software-defined vehicles (SDV), the demand for real-time, secure OTA updates and containerised services via 5G networks grows. 

This collaboration addresses such needs by providing an integrated solution using TETHER, Tata Elxsi’s connected vehicle platform; NEURON, Tata Elxsi’s network automation platform; Red Hat OpenShift, a hybrid cloud application platform; and Red Hat In-Vehicle Operating System. 

The solution further empowers OEMs to deploy subscription-based services and platforms for connected vehicles, offering advanced fleet management features and real-time OTA updates.

Reducing network OpEx

By combining Tata Elxsi NEURON and Red Hat OpenShift, telcos can undergo a transformative shift towards seamless automation, cloud integration, service orchestration, and robust assurance, the company said. 

Additionally, this integration streamlines operations and leads to a major reduction in operational expenditure, enhancing efficiency and profitability in the telecom industry. NEURON simplifies lifecycle management, offers end-to-end orchestration for network deployments, utilises AI-powered observability for proactive monitoring, and automates tasks for streamlined and secure network operations.

"Collaborating with Tata Elxsi, we are excited to leverage Red Hat OpenShift to provide telcos with enhanced monetisation opportunities. This work is a testament to our commitment to delivering innovative solutions that drive growth and efficiency in the telecom sector," said Mark Longwell, director, telco and edge alliances at Red Hat.