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Telecom’s cloud exodus is on the horizon, says GlobalData, driven by 5G

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Following the emergence of the cloud-native 5G technology in telecom, cloud has been amongst the top themes/topics of discussion in the telecom sector in 2019, according to GlobalData’s Company Filing Analytics platform.

According to the platform, which leverages machine learning (ML) and natural language processing (NLP) techniques to identify and track major themes impacting various sectors, the theme mentions for cloud in the telecom sector is second only to mobile payments. With the onset of 5G technology, cloud for telecom is a prime topic of discussion.

The rise of 5G technology has prompted telecom companies to consider cloud migration. As 5G is cloud-native from the get-go, telecom operators are required to run and pilot container-based applications by migrating to the public cloud.

In early December 2019, Amazon launched the AWS Wavelength 5G edge-computing platform, which helps in developing apps for end-users of the 5G network. Amazon’s partners for the product include Verizon, Vodafone and SK Telecom. The public web’s lower operating cost structure, automated processes and expeditiousness, provides pivotal impetus for telecom companies to migrate to the service.

Aurojyoti Bose, Lead Analyst at GlobalData, says: “The telecom industry will deploy 5G technology, but is expected to face some cloud migration hindrances in 2020 due to skepticism on the implementation of novel cloud-native technologies. Although, telco giants such as AT&T and Verizon are working with cloud service providers, namely Microsoft and Amazon, to add edge-computing to network centers, as enhancements are required for superior 5G implementation.”

On 7 January 2020, at the Citi 2020 Global TMT West Conference, Verizon Consumer Group CEO Ronan Dunne commented on the importance of the company’s association with Amazon Web Services (AWS), the future of edge-computing in telecom and opportunities the partnership will generate. The company has joined forces with Bethesda Softworks to deploy the 5G Mobile Edge Computing (MEC) for low latency.

Zscaler Inc., Qualys, Inc., Avaya Holdings Corp, 8×8 Inc. and MobileIron, Inc. are some of the top companies discussing the theme for the telecom sector.

Bose concludes: “With the dawn of 5G technology, cyberattacks are expected to reach an all-time high. Ensuring cybersecurity will be of utmost importance, requiring the collaboration of businesses and governments across the globe. Several service providers are partnering with security vendors to strengthen their offerings. For instance, in December 2019, Google Cloud partnered with Fortinet, McAfee and Palo Alto. Ensuring perfect security will help telecom companies in migrating swiftly.”

 

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