A report from Capgemini Research Institute titled Networks on Cloud: A clear advantage investigates the current telco cloud transformation trend in terms of cost, benefits, and business revenue.
According to the report, Telco Cloud is expected to experience 50% growth in the next five years, and Telcos are expected to invest $1B on average in network cloud transformation.
The study looks into the driving forces behind telcos "cloudifying" their networks, the benefits offered by telco cloud, successful use cases of telco cloud, and how telcos can maximize the potential of telco cloud.
- The report states that telcos plan to invest $206M annually on average in telco cloud over the next five years. Greater scalability, reduced complexity, and increased operational efficiency are the main drivers for the transition to the telco cloud.
- Based on the research conducted, the private cloud is the preferred cloud-deployment model, especially among European telcos — 70%, compared to 42% in the U.S. and 39% in the APAC.
- The report states the financial benefits provided by telco cloud indicate that telcos will gain an average of $370M-$590M in yearly benefits, citing use cases by Nokia, Chunghwa Telecom, and others.
