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Cloud

Networks on cloud: A clear advantage

Report from the Capgemini Research Institute

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“A mobile-telecoms revolution is under way – one reminiscent of the way personal computers replaced mainframes in the 1980s, and cloud-based apps are replacing traditional software today.”

Tareq Amin, CEO of Rakuten Mobile, wrote this in 2021 as part of his outlook on the future of mobile telecoms. The revolution he was referring to – “telco cloud transformation” – is the transition from physical network functions to a software form, running on the cloud. Telcos are increasingly moving their networks to the cloud, recognizing the significant advantages this can provide – 31% of global network capacity is being serviced by cloud today, and this is expected to increase to 46% in the next 3 to 5 years.

In our newest Capgemini Research Institute report, Networks on cloud: A clear advantage, we take an in-depth look at the telco cloud transformation process. While the “virtualization” of network functions, which serves as a starting point for telco cloud transformation, has been ongoing for several years, we see cloud-native deployment of network functions – which can take virtualization’s benefits to the next level and offers additional ones as well – rapidly taking off among telco organizations. Our analysis shows that by transforming to cloud, a typical telco from our survey can improve its network total cost of ownership by $260 to $380 million and can gain an early-mover advantage to the tune of $110 to $210 million in additional revenue.

However, we also found there to be significant challenges that organizations embarking on transformations must overcome. These include issues related to cultural challenges, controlling cloud costs, and regulatory hurdles, among others. To navigate these obstacles successfully, telcos will need to be prepared to skillfully implement both technical and cultural changes within their organizations.

Still, the decision to transform looks to be a given based on the numerous and significant benefits that it can provide. With this in mind, we aim to answer four of the most significant questions for organizations surrounding the move toward telco cloud – including why the move is taking place, its cost-benefit analysis, examples of successful transformations, and how organizations can harness the full potential that telco cloud offers.

Download the full report to read our comprehensive insights on this subject.

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Meet our experts

Jacques Assaraf

Global Head of Telecommunications
With three decades of experience in the Telecommunications industry, Jacques has been at the forefront of navigating the dynamic waves and challenges that have shaped the industry—from the advent of GSM and the Internet to the evolution of xDSL, 3G, convergence, Fiber, 4G, and 5G. Over the course of his career, he has played an active role in numerous large-scale digital transformation programs, supporting key Telco operators around the world as they evolve and adapt to meet the challenges of the moment and prepare for the future.

Shamik Mishra

VP, CTO Connectivity, Capgemini Engineering
Shamik Mishra is the Global CTO for connectivity, Capgemini Engineering. An experienced Technology and Innovation executive driving growth through technology innovation, strategy, roadmap, architecture, research, R&D in telecommunication & software domains. He has a rich experience in wireless, platform software and cloud computing domains, leading offer development & new product introduction for 5G, Edge Computing, Virtualisation, Intelligent network operations.

Arnab Das

Vice President Advanced Connectivity Center of Excellence, Capgemini Engineering
Arnab currently serves as Vice President and CoE head of Connectivity at Capgemini Engineering. As a global lead for technology and innovation business, Arnab drives the connectivity business portfolio for 5G, virtualization, cloud native, edge computing, intelligent networks, and carrier cloud platforms. He is responsible for driving business development, competence development, and knowledge management for the advanced connectivity pillar for Capgemini Engineering.

Karl Bjurstroem

EVP, Global Head of Tech & Telecom Industries, Capgemini Invent
Strategy consultant and manager passionate about the use of digital technologies to gain strategic and operational advantages within customer experience, product development and marketing. Specific expertise in digital strategy formulation and realization, developed by working with CXO level clients in the high tech, telecom, media and banking industries across the globe.

Fotis Karonis

EVP, Global Head of 5G & Edge, Capgemini Group
“Advanced connectivity, 5G, and Edge computing technologies are strong enablers and accelerators for this move towards a digital economy and innovative use cases. They allow industrial clients to redesign systems and processes and make them more efficient, agile, and intelligent.”

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