Everything is transforming everyday, and so is technology. In this blog post, I will share my opinions about cloud transformation in the telecommunications industry. Let’s call it a cloudification.
The telecom industry, known for its continuous evolution, is undergoing a significant change in recent years – the cloudification of telecom services. This transformation involves migrating network infrastructure, services and operations to cloud-based platforms and technologies. So it’s said that the ways telecom companies operate and serve their customers are being evolved.
Telecom operators usually maintains extensive physical networks comprised of switches, routers and specialized equipment to deliver voice, data and multimedia services. However, these legacy systems proved that they’re costly to maintain and are limited in flexibility. So, cloud transformation addresses these challenges by using cloud computing technologies, allowing for more agile, efficient and adaptable network infrastructures.
There are several sides that pushing telecom industry to be evolved. First and foremost is cost efficiency, as cloud-based solutions eliminate the need for expensive proprietary hardware and promote resource optimization. Second one is scalability which is another key factor allowing telecom operators to adjust services in response to changing market demands. Last but not least, cloudification also enhances agility by facilitating rapid service deployment, including improving customer experiences and enabling telecom companies to stay competitive in the market.
The bottlenecks
While cloudification offers numerous advantages, it’s not without its challenges. Now talking about the bottlenecks for sure. Security concerns arise as networks become more interconnected. Integrating cloud-based solutions with existing legacy systems can be complex and costly, and telecom companies may need to upskill their workforce to manage cloud-based infrastructure effectively. Additionally, regulatory compliance in a cloud-based environment can be challenging. Plus, there’s a risk of vendor-dependency.
Moreover, the cloud service providers has various connection methods for on-prem network service providers. Let’s take AWS as an example. AWS offers numerous solutions for hybrid cloud, where I wrote about them before. Even though, the cloud is capable of integrating with telecom networks, telco companies may not be eligible for that due to high-dependency for legacy systems. With the increase of network function virtualization (including NWDAF), there is a promising field here to implement the network functions with the cloud abilities.
Cases from the industry
Let’s get to the point. It’s real. There is no secret that cloud technologies can strenghten the telecoms.
DISH Network has deployed its 5G Core network – the first standalone, cloud-native and autonomous 5G network running on cloud. “The company envisions a complete cloud-native 5G network with all its functions, except minimal components of the Radio Access Network (RAN), running in the cloud with fully automated network deployment and operations” says the related blog post. DISH built its 5G core from ground up, meaning no migration of on-premises to the cloud at some level.
Telefonica Germany (O2 Telefonica) moves its 5G Core network to AWS cloud. On the contrary of DISH operation, Telefonica Germany is moving an existing network services to the cloud. Note that, the operator has over 45 million mobile subscribers. So that means at the end of this transformation, large amount of end users will be carried on AWS platform.
For both examples, the network side takes an important place. Cloudified networks need the best adaptable network functions, which provided by global network service providers like Nokia or Ericsson. For instance, a wide range of Nokia equipment is deployed in the 5G core of Telefonica Germany. Therefore, the operator has become available for migrating to the cloud.
What can be done to cloudify telecom networks?
Cloud-based telecom networks break away from traditional, hardware-dependent environments by virtualizing network functions and adopting a software-driven model. Here, Network Function Virtualization (NFV) and Software-Defined Networking (SDN) enable operators to scale resources on demand and deliver new services easily. Preparing network functions and software more suitable for cloud helps operators to understand the next processes of moving to the cloud.
The motto for every telecom operator can be like this: Adopt the change, replace the old, transform.
Result
Cloudyfying telecommunications also opens doors to advanced capabilities such as edge computing and AI-driven orchestration / automation. Although the main content of this blog post focuses on cloudified networks, enhancing service delivery and customer experience are also important as network itself. For example, edge computing allows data processing closer to users, reducing latency and supporting real-time applications. And AI-based automation and orchestration can help operators to predict network demands, optimize traffic and automate fault recovery. These all reduces operational effort and minimizes downtime.
In conclusion, the cloudification of the telecom industry guides the industry to a transformative era, where promising cost savings, agility and innovation take part. However, it also presents challenges related to security, legacy integration and regulatory compliance. As the telecom industry evolves to meet the demands of brand new technologies, cloud-based solutions will play an important role in shaping the future of telecommunications.