Telcos are set to spend billions on new cloud infrastructure
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Nearly half (46%) of telecom network capacity will be fully cloud-native in the next 3-5 years, signaling huge investments to come, according to a new report.
To get to this stage, research of Capgemini It has been suggested that telco companies are expected to invest an average of $200 million per year.
As if the incentives weren’t already clear enough, Capgemini also counts on early adopters being able to recoup a large chunk of their money fairly quickly.
Telco cloud investments
Early adopters of cloud-based telecom platforms are expected to recoup as much as 47% of their investment within the 3-5 year period.
Part of this will come from total cost of ownership optimization for the networks, which is expected to deliver savings of 13%. The early mover status is also attributable to the return forecasts.
The cloud transformation is said to be driving next-generation technologies such as smart factory automation; private 5G networks in distribution centers, ports, oil fields, mines, chemical storage and processing units; remote operations; AR/VR or Metaverse compatible remote control, monitoring and training.
Finally, with our growing need for data storage and communications, coupled with increasing pressure for greener solutions, telecom companies hope their cloud investments will enable them to reduce their greenhouse gas emissions by 5%.
According to Capgemini (opens in new tab), many of our favorite telecom companies have already started their transition. AT&T announced in 2021 that it would move its 5G mobile network to Azure, while O2 Telefonica said it would move part of its 5G network in Germany to the cloud in partnership with Google Cloud and Ericsson.