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Telcos to Spend Big on Cloud Services Over the Next Four Years

Telcos’ $65B cloud investment projected by 2028 signals the industry’s bold move toward digital transformation.

Written By

Pamela Winikoff

May 20, 2024

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Telecommunications operators are bracing for a seismic shift in investment and demand, according to a recent report from telecom intelligence and advisory firm Juniper Research. The report reveals that operators will inject $26 billion into cloud services in 2024, with spending surging to $65 billion in 2028.

The report also anticipates a 110% surge in the growth of cellular data volume over the next four years, propelled by the expansion of 5G networks and the emergence of cloud-native 6G networks. This surge is driven by the adoption of data-intensive IoT applications like automated manufacturing and vehicle infotainment systems.

To handle the exponential data growth, operators must adopt cloud-based network management systems to automate network resources in real time. Machine learning will play an instrumental role, enabling real-time traffic analysis and automatic adjustments to prevent network congestion and ensure uninterrupted service quality.

Cloud for cost mitigation

In response to this surge, operators are directing significant investments into telecommunications cloud technologies to meet escalating data demands, enhance efficiency, reduce costs, and achieve their sustainability goals. Machine learning will also be used to reduce power consumption to network elements when the volume of user demand is low.

The growing data traffic on cellular networks strains the cost of ownership for wireless cellular carriers. Telecommunications cloud technologies offer a cost-effective solution by optimizing resource distribution through virtualizing base-band units (BBUs) and embracing cloud radio access network (RAN) technologies.

5G and beyond — The cloudification imperative

As the rollout of 5G networks accelerates and 6G emerges, cloud-based infrastructures will become a greater imperative for telecom operators. With 5G connections projected to soar to $5.9 billion by 2028, cloudification will become a strategic necessity for operators. The wave of transition to 6G networks will present even greater complexities, demanding significant investments in cloud RAN technologies to navigate challenges posed by higher frequencies and increased interference.

Impact on MSPs and resellers

With telecom companies set to increase their investment in cloud technologies over the coming years to cope with rising data needs and sustainability goals, the shift carries substantial implications for MSPs and resellers.

MSPs can capitalize on the increasing demand for cloud-based network management solutions, offering expertise in implementation and optimization. Resellers can leverage partnerships with cloud service providers to offer tailored solutions to operators that drive revenue growth and foster innovation.

Curious about the growth in the telecom cloud market? Read about Dell’s alliance with Nokia and how the collaboration is creating new opportunities for channel partners to deliver telecom solutions and foster business growth.

Pamela Winikoff

Pamela Winikoff is an award-winning corporate communications and writing professional with extensive experience creating marketing, publicity, thought leadership, and other content that enhances public perception and accelerates business growth. She has also ghostwritten hundreds of articles for subject matter experts across numerous industries.

Telcos to Spend Big on Cloud Services Over the Next Four Years

Cloud for cost mitigation

5G and beyond — The cloudification imperative

Impact on MSPs and resellers

Pamela Winikoff

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