Thursday, May 23, 2024

    Operators to Invest $200bn globally in cloud network services to sate cellular data demand

    The growth of 5G and the coming of 6G is seeing MNOs invest more in cloud architecture in their core networks bring everything from automation to high-efficiency to sustainability gains

    Operators are set to invest up to $26bn in cloud services in 2024, with expenditure growing to $65bn in 2028 – and totally around $200bn across those four years a new study from Juniper Research has revealed.

    Telecommunications cloud is the implementation of cloud technology, services and architecture into operator core networks, with this centralisation enabling operators to develop automated network management systems.

    An extract from the new report, Global Telecommunications Cloud Strategies Market 2024-2028, is now available as a free download.

    Real-time traffic analysis key to network automation

    The study predicts the growth of 5G networks and the arrival of cloud-native 6G networks will result in a 110% increase in cellular data over the next four years. This growth will be driven by the rising adoption of data-intensive IoT use cases, such as automated manufacturing and vehicle infotainment systems.

    To manage this substantial growth in cellular data, operators must leverage cloud-based network management systems to automate the management of network resources in real-time and at a local level.

    Critical to this automation will be machine learning, which will enable real-time traffic analysis, enabling automatic changes to network resources in response to unexpected traffic patterns.

    This will prevent congestion from sudden increases in cellular data on operator networks; protecting quality of service.

    Cloud – critical to addressing sustainability concerns

    Additionally, the report predicts that cloud technologies will be instrumental in enabling operators to achieve sustainability targets. Operators will use machine learning to automate network management; reducing power to network elements when user demand is low.

    Research author Alex Webb comments: “Telecommunications networks are becoming more complex; requiring increasingly automated network management systems. However, operators must insulate mission-critical traffic when reducing power, to guarantee quality of service for enterprises.”

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