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The Impact of Cloud Computing on the Telecom Industry

Mohammed NaserMohammed Naser

Watch the telecom industry make the most of cloud computing with benefits like revenue growth, high data center efficiency, and reduced OPEX.

Telecom and Cloud

The global business operation techniques in information and communications technology have undergone remarkable changes through cloud computing. Various government and public enterprises are dependent on vital information infrastructure services. Moreover, companies are now showing more interest in cloud services to meet the growing demand from business operations. The cloud telecom market is one of the many service industries witnessing significant growth.

Cloud Adoption Trends Among Telecom End-Users

Similarly, the telecommunication industry and telecom service providers are also turning to cloud resources to improve business productivity and improve service for their end-customers. The increasing demand for top cloud services, lower operational and administrative costs, and growing awareness about the telecom cloud among enterprises will heighten the market's growth.

According to researchers, the cloud telecommunication industry was valued at USD 17.15 billion in 2019 and valued at $50.77 billion by 2025. In the given period of 2020-2025, the cloud telecommunication market will grow at a CAGR of 20.89%.

A significant challenge that the market faces is the risk of cyber threats.

Researchers predict that with the rising demand for economical and user-friendly browser-based communication solutions, especially in North America, it will indirectly boost this segment's growth.

When the telecom industry utilizes cloud solutions and resources, it facilitates service offerings like unified communication and collaboration, content delivery network, etc. The growth and requirement of such services attribute to the increasing internet and mobile device penetration.

Prevalent Solutions

Communication and collaboration applications are integral to an efficient business environment. Using cloud telecom services is one easy way to set up communication solutions for streamlined company discourse. Hence, these services enable organizations to deploy a broad spectrum of solutions, including telephone, email, instant messaging (IM) and audio, video conferencing, mobility, and social networking, and much more.

The content network is a complex web of multiplying media content and a high demand for quality video content. With online users proliferating rapidly and increasing digitization, cloud telecommunication solutions fulfill the audiences' need for content delivery network solutions.

Advantages Of Cloud For Telecom Providers

Cloud computing is not only popular among end-users of the telecom industry but also for telecom providers themselves. With this, businesses increasingly acknowledge the need to leverage advanced technologies, to improve business agility and gain operational efficiencies. Here are some known cloud computing advantages for providers:

  1. IT independence is promoted in organizations as telecom providers can provide a wide array of services through the vast network of cloud computing.
  2. Cloud computing reduces operational cost on hardware and software requirements and enables infrastructure scalability based telecom service provider's needs.
  3. Managed cloud services enhance data center efficiency for carriers. Thus, the longevity of a data center and server utilization is increased through the cloud and telecom collaboration.
  4. Cloud provides a scalable engine for telecom providers to build scalable and managed services. Therefore, telecom providers can expand on their products and services to generate more revenue.

Get A Comprehensive Cloud Service

If you are a telecom provider looking to make the most of the changing industry trends, then an OpenStack cloud will help you achieve those goals. At VEXXHOST, we provide a fully customizable and managed private cloud service. A highly scalable and agile cloud infrastructure powered by OpenStack opens up new avenues for business success. Get in touch with our team to know more about OpenStack cloud services and benefits.

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