how telecom cloud computing transforms the industry

How Telecom Cloud Computing Transforms the Industry

Telecom industry digital transformation

The telecom sector has experienced significant changes due to the increasing adoption of cloud computing solutions. The advantages of cloud solutions, such as flexibility, reliability, and cost-effectiveness, are key factors accelerating the adoption of cloud computing solutions in the telecom industry. For instance, Google Cloud announced three new telecom products in February 2023 to support communication service providers (CSPs) digitally transforming their networks with hybrid-cloud principles and unlocking new revenue opportunities. Telecom Data Fabric, Telecom Network Automation, and Telecom Subscriber Insights are new products that will provide CSPs with a unified cloud solution to support providers in developing, deploying, and operating their hybrid cloud-native networks, gathering and managing network data and enhancing customer experiences via artificial intelligence and analytics.

Cloud-based telecommunications and Telecommunications cloud infrastructure

One of the most commonly used cloud-based telecommunication systems is Telco Cloud. It is a highly resilient cloud arrangement that allows telecommunications service providers (telcos) to improve services quickly, counter any changes in network demand faster, and effectively manage central and decentralized resources. Telco cloud is a promising component in a successful digital transformation of the telecom sector.

Telecom cloud technology offers a secure, reliable solution for functioning 5G services properly. This enables faster telecom cloud scalability and deployment of a network of 5G network to meet the growing demand across consumers.

Cloud computing in the telecom sector is an alternative to traditional telecom networks that increase agility and minimize operational costs. Cloud computing is essential for Telcos as it helps improve customer experience and expand their core services.

Telecommunications industry transformation

Cloud computing has positively impacted the telecommunication industry as it helps reduce administrative and operational costs while integrating communication and collaboration via extensive Content Delivery Networks (CDN).  

Telecom cloud services have become an essential component of telecommunication, owing to the fact that it provide high-level of network services. According to the Google Cloud Brand Pulse Survey, due to the current macroeconomic climate, cloud providers are increasing their use of cloud-based services and products (41.4%), planning to migrate from legacy enterprise software to cloud-based tools (33.4%), and migrating on-premises workloads to the cloud (32.8%).

New research from the Capgemini Research Institute – ‘Networks on cloud: A clear advantage’ – reports that around half of telco (46%) network capacity is expected to be entirely cloud-native in the next 3-5 years. To reach this transformation, telco companies are projected to spend at least USD 200 million per year on average in cloud transformation during the same period.

Cloud-based network functions or Cloud-native telecom solutions

Cloud-native telecom solutions are gaining attention in the market as they ensure a high degree of scalability, which enables CSPs to scale their resources up or down as per the requirements. With high scalability, telecommunications service providers can effectively reduce costs without compromising resources.

In addition, cloud-native helps communication service providers quickly recover from cyber-attacks, infrastructure damages, transient faults, unpredictable network latency, etc. Moreover, with cloud-native, telecom service providers can serve customers more quickly. This can be attributed to the use of microservices architecture that enables the platform to have several independent microservices, and telecom service providers can have a faster release pace.

The primary goal of cloud-enabled telecom networks is to manage networks effectively, minimize operational costs, and deliver new and better customer services.

Vendors in the market are entering into agreements and partnerships to develop a cloud-based 5G network. For instance, Tech Mahindra, a service provider of digital transformation, consulting, and business re-engineering services, and Microsoft, in January 2023, announced that they have entered into a partnership to enable cloud-powered 5G core network modernization for telecom operators around the globe.

Telecom network virtualization

Network virtualization can overcome various challenges associated with the communication sector. This can reduce the cost of connectivity and create a software-centric service while delivering a network that can fuel revenue generation for telecom service providers.

Cloud-driven telecom innovations

Ongoing research activities in the cloud telecom field is expected to accelerate various innovations. Cloud-driven telecom has significantly revolutionized the IT sector and other businesses using cloud-based services. These solutions help a business develop multiple services and sustain itself in the competitive market.

Cloud-based communication solutions

Cloud-based communication solutions have made accessible communication between data and voice communication through the cloud. It has become a central force in various industries worldwide. Telecom cloud architecture or telco cloud encompasses network functions virtualization, software-defined networking (SDN), and cloud-native technology that can be easily incorporated into a distributed computing network. In recent years, the telco cloud has increased the adoption of novel cloud services that transform networks' operations.

In order to reduce operational costs and raise deployment times, operators are migrating to cloud networks from traditional networks. Telecom cloud migration helps service providers to migrate present customers to the cloud platform. This migration of the telecom industry has also added new customers in recent years.

Telecom cloud deployment

Telecom cloud deployment comes with the advantages of accessing AI and advanced data analytics available in the public cloud network. Telecom cloud deployment helps to build digital relationships among telecommunication providers.

Telecom cloud security is gaining prominence due to the growing awareness regarding the reducing risks in telco clouds. They are essential to protect the information from attacks. Additionally, growing instances of cyber-attacks further fuel demand for telecom cloud security. The need for security in the cloud telecom industry is also essential because telecom cloud applications enable the usage of storage, servers, networking, and databases, which require enhanced security systems.

Telecom industry disruption by cloud computing

Shifting from a traditional network to a cloud-based one has significantly departed service providers from current services and operating models. This has led to a disruption in the existing market that offers traditional services in the telecom industry. However, many telecom operators are taking advantage of this opportunity, which has disrupted their enterprise business as new technologies such as 5G and edge computing help telecom operators unlock more convincing uses for global enterprises. For instance, in March 2022, STL Partners surveyed around 70% of telecom service providers, and they stated that they had ambitions to shift beyond connectivity and saw their future in creating value through applications and platforms.