Introduction to Telecom Cloud
Telecom Cloud also known as Telco Cloud is a term used to represent the data centers and related infrastructure that carrier companies require to deploy and manage mobile networks with data transfer capabilities. The advancement in Telecom sector, from 2G spectrum to 3G, 4G, LTE networks and the latest 5G technology significantly changed the telco cloud infrastructure. Telco cloud usually operates from data center complexes which cause challenges with huge capital investment and operational expenses. The invention of VoLTE, Voice over Internet Protocol (VoIP) and the emergence of OTT platforms led to even higher operational expenses and thus network operators are keen to shift to cost effective solutions while ensuring strong network connectivity to subscribers. The deployment of cloud services will reduce the overall operational costs and offers flexibility of prices in products and services offered.
Market Size and Forecast
In today’s digital world, an individual with a mobile containing a data plan is empowered with infinite possibilities. However, the telecoms or network providers face significant operational challenges to maintain the serviceability with increasing costs. The cloud enables deployment of software and services with minimum operational costs. This cost-effective solution is driving telcos to consider cloud as a potential platform for future operations and thus the telecom cloud market is anticipated to record a significant CAGR during the forecast period of 2020-2028. Based on service type, the market is segmented into Software as a Service (SaaS), Platform as a Service (PaaS) and Infrastructure as a Service (IaaS), out of which, the highest market share is estimated to be held by SaaS segment. This can be attributed to the requirement of this form of service by businesses globally. The market is further segmented by application into citizen services and developers, out of which, the citizen services segment was predicted to be the largest revenue generating segment in 2019 owing to the requirement of connectivity and internet services to the public. Additionally, the hosting services for app developers further contributed to the growth of the segment. Based on the type of deployment, the telecom cloud market is further bifurcated into public cloud, private cloud and hybrid cloud. The segment for private cloud is anticipated to hold the leading share in the market throughout the forecast period. CLICK TO DOWNLOAD SAMPLE REPORT
Increase in Internet Users Globally
The World Bank has published the report by the International Telecommunication Union which states that in 2017, 49% out of every 100 people on the planet were reported to use internet on daily basis. This is anticipated to become a major growth factor for the telecom cloud market in the coming years. Besides network connectivity, telecom giants who provide manufacturing solutions and services paired with cloud-based cost-effective delivery have a tremendous business opportunity in future.
Rise of OTT services
With the emergence of over-the-top (OTT) platforms, the web traffic management for the ISPs and the telecoms has become very difficult and costly. Telecoms have been looking towards cloud-based network operations as a viable option to improve operational efficiency, which is predicted to be another growth factor for the market.
Aftermath of COVID-19
The lockdown measures that were taken globally as a result of the COVID-19 pandemic have resulted in increased internet consumption across the world. However, the telecom giants have predicted that this would lead to huge traffic and major operational inefficacies and appealed to all streaming services and OTT platforms to restrict video resolution to Standard Definition (SD). Experts predict Cloud infrastructure will enable telecoms to overcome this challenge.
Rebuilding Infrastructure and Cyber Threats
Moving from the traditional, i.e., wired to wireless infrastructure is a challenge and is associated with huge capital investment. Moreover, a cyber-attack on a telecom operator can disrupt entire network services for phones and internet thereby leading to data thefts, crippling businesses and sometimes shut down government operations. These are major factors estimated to hinder the market growth.
Telecom Regulations and Lack of Skilled Professionals
The telecom regulators across the world such as the FCC in the U.S. and TRAI in India often interfere with the telecoms strategic decisions. Lack of technical skills and proficiency among telecoms in cloud-based infrastructure and deployment are some other factors predicted to result in a negative growth of the market over the forecast period.
Our in-depth analysis of the telecom cloud market includes the following segments:
By Service Model
On the basis of regional analysis, the telecom cloud market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region. The market in North America is anticipated to hold the largest share in the market on account of presence of leading players in the region which develop and market telco cloud solutions and services. The growing requirements to reduce operational costs and rise in OTT cloud services are predicted to drive the market growth. The market in Asia Pacific region is anticipated to grow at the highest rate during the forecast period as a result of growth in digitalization, number of internet users and IoT devices in the region, particularly in countries such as China, India and Japan.
The telecom cloud market is further classified on the basis of region as follows:
Top Featured Companies Dominating the Market
Direct access to analyst to help you understand the market in a better way to handle your critical question
Citing your business specific requirement our consultant would assist you ensuring targeted goal is achieved
Get 10% free customization