Telcos and the Cloud: The Subtle Art of Not Losing Control

During the global lockdown in 2020, people became more digitally connected than ever before. Zoom meetings for work, distance learning for children, and increased Netflix viewing only heightened our reliance on communication technology. These profound changes in consumer behavior catalyzed a seismic shift in society, placing monumental pressure on the global telecommunications sector to evolve, scale, and deploy rapidly to meet the growing demands.?

A new research report released by Capgemini in February 2023 predicts that over the next three to five years, 46% of the telco sphere will be cloud-native. With over 800 telecom service providers competing for their slice of the pie, they will each have to invest over $200 million per year on average to achieve this level of digital transformation.

As businesses now perceive network connectivity as a commodity, telecommunications companies must innovate as digital differentiators and strive to provide value-added services to generate new revenue streams.

In telecommunications circles, there has been widespread discourse on the adoption of public cloud solutions. These solutions are lauded for their ability to facilitate the development, deployment, and scalability of services, especially in the face of a stagnant telco market brought about by the emergence of VoIP and OTT platforms.

It's no surprise that unified digital connectivity emerges as a key theme at this year's Mobile World Congress, a premier global telecom even.

The shift has become particularly notable given the dominance of AI in 2023, which disrupted nearly every industry. Telcos are now gearing up to harness this technology, necessitating investments in cloud infrastructure to meet the intensive demands of AI and ML workloads.?

Why Public Cloud Is Becoming Increasingly Critical for Telcos

The global telecom cloud market size is expected to surpass around US$ 131.47 billion by 2032, with a significant CAGR of 14.2% from 2023 to 2032. So, what’s driving this year-over-year growth? Below are some of the biggest cloud adoption use cases for telcos and MNOs:

1. Faster Innovation: Traditionally, the telecom industry has heavily invested in on-site hardware deployment and support personnel, resulting in time and capital-intensive telco operations. While telcos remain dependent on legacy infrastructure and struggle with digitization, OTT platforms and service providers such ase WhatsApp and Netflix capitalize on widely available cloud infrastructure to offer innovative, in-demand, and high-revenue services. With cloud technology, telcos? can also release new services and infrastructure components faster, allowing them to launch innovative offerings swiftly to gain the first-mover advantage.
2. New Monetization Streams: Public cloud allows telcos to diversify their revenue streams beyond traditional connectivity solutions by providing value-added services such as cloud storage, SASE or SSE offerings, IoT platforms, and more. In addition, the cloud provides telcos and MNOs with the infrastructure resources needed to monetize the vast amounts of user data they process, enabling them to offer advanced data analytics to business consumers.

Want to know more? Read the full blog here ?? https://bit.ly/3uQ4aTu

Discover how the emma | Cloud Management Platform addresses these challenges and simplifies cloud complexity across all sectors. Join us for a coffee at MWC Barcelona this coming week, and visit booth 6D59 to discuss leveraging the multi-cloud revolution for your competitive advantage.

Check out our latest resources:

? How to streamline hybrid cloud operations: bit.ly/49LuoWk

? Top ways to guarantee interoperability in?diverse multi-cloud environments: bit.ly/42PU15Q

? Exploring cloud native vs cloud agnostic technologies: bit.ly/49ptu1T

?? Learn more about the?emma platform:?https://lnkd.in/eT8Ahjh3

?? Discover what differentiates the emma platform from other solutions:?https://lnkd.in/eJRBqi7P