Telco public cloud usage is predicted to double in 2019, according to a recent research report by industry analyst firm Ovum, entitled “Understanding the Business Value Of Re-architecting Core Applications on the Public Cloud.”
Currently, only 20% of telecommunications core systems are virtualised, and just a fraction of those are on the public cloud. Communication service providers (CSPs) are missing out on a huge cost savings opportunity by not migrating to the public cloud. Given the disruption and changes in the telecom market, CSPs need more effective ways to deliver services and new methods of monetising, and public cloud accelerates this transformation.
Migrating telco workloads to the public cloud is not just a “lift and shift” exercise, but instead requires architecture of applications to use cloud-native technology that is available only on the public cloud. This is even more crucial now as network operators prepare to deploy 5G, necessitating greater agility, dynamic scalability, improved security and reduced total cost of ownership (TCO).
While CSPs have been reluctant to move core applications to the public cloud, Ovum analysts predict that telecommunications companies will be among the fastest growing adopters of public cloud in 2019 and 2020. In fact, the number of CSPs planning to move workloads, such as revenue management and network management, to the public cloud is expected to double in 2019, according to the Ovum research.
“Ovum advocates that CSPs make the move to public cloud a strategic decision with clear business outcomes,” writes report author Roy Illsley, distinguished analyst at Ovum. “CSPs will face the prospect of a major transformation and potentially new business models and new segments. To achieve this, they must think about what they currently do and assess whether it is adding value.”