The Telecommunications, Media & Technology (TMT) sector is navigating a new, more complex landscape with the rise of advanced capabilities like 5G and IoT. To fully embrace these new technologies, TMT companies have evolved to become “tech-cos”.
As digital tech companies, these tech-cos leverage network modernization, AI-driven operations, and open APIs to deliver new services and explore new revenue models. This involves upgrading and modernizing their infrastructure, with the Cloud serving as an essential pillar for innovation.
Leading a Cloud Paradigm
From the network core to end-user applications, there are several domains where cloud computing plays an integral role. According to Gartner, growth is expected for all segments of the cloud market in 2023. By 2026, 75% of organizations will adopt a digital transformation model that relies on the cloud as the underlying platform.
The cloud provides the necessary infrastructure, management tools, and security measures for telecoms to leverage and monetize emerging technologies such as 5G. For example, cloud infrastructure can support the deployment of 5G edge compute solutions and 5G private networks.
Cloud services offer a suite of capabilities that redefine operations – from revamping applications for enhanced efficiency and user experience to harnessing data analytics, automation, DevOps, and cybersecurity for smarter decision-making, reduced errors, and increased cost-effectiveness.
Cloud serves as the bedrock of transformation and growth, enabling businesses to leverage 5G’s rapid data speeds, heightened reliability, extensive network capacity, remarkably low latency, wider availability, and enriched user experiences. This marks a significant leap forward in wireless communication.
What the Cloud Offers
Below are the top reasons that the TMT sector is moving to the cloud:
- Scalability and Flexibility: The cloud offers flexibility for quickly scaling up or down computing resources depending on business requirements. Telecommunications companies can respond quickly to market fluctuations, accommodate growth, and deliver seamless services without compromising quality.
- Cost Efficiency: Telecom companies can avoid upfront investments in expensive hardware and infrastructure, opting for pay-as-you-go models instead and reducing capital expenditures. Cloud solutions also eliminate the need for physical infrastructure, which may help lower energy consumption, reduce time delays, and improve efficiency.
- Reduced Downtime: The industry relies on robust and reliable systems to ensure uninterrupted connectivity and communication services. Using cloud native APIs, TMT companies can modernize core OSS & BSS systems and applications to manage and monitor distributed deployments. This ensures business continuity even in the face of infrastructure failures or natural disasters.
- Optimized Network Performance: Companies can strategically cache and distribute content closer to the edge of the network, reducing latency and improving load times. Leveraging Cloud-based Network Functions Virtualization (NFV) through open network architectures further empowers businesses to virtualize, centralize, and modernize network functions. This approach not only boosts networks agility but also augments overall efficiency.
- Reduced Time-to-Market: Cloud computing provides a fertile ground for rapid prototyping, testing, and deploying new services. This allows telecoms to quickly roll out new features and services and experiment with emerging technologies like Internet of Things (IoT), 5G, and edge computing.
- Data Analytics and Insights: Organizations are producing trillions of records of data that the industry processes in almost real time. Cloud-based data analytics tools allow for faster, more efficient insights into customer behavior, network performance, and operational efficiency. This enables businesses to transform customer experiences with products and services that cater to individual preferences and needs in real time.
- Security and Compliance: Security is critical in the telecom sector, considering the sensitivity of the data involved and the ever-evolving threat landscape. The cloud offers a host of essential features including data encryption, identity and access management, and threat detection, eliminating the need to develop from the ground up.
As the TMT landscape continues to evolve, adopting cloud computing is no longer an option but a necessity for organizations seeking to thrive in this 5G era. Organizations can tap into the vast benefits of cloud computing, enabling them to dynamically scale resources, reduce costs, enhance reliability and resilience, optimize network performance, and accelerate innovation.
Orion has been empowering the Telecommunications, Media & Technology industry with end-to-end Cloud & Infrastructure business solutions for two decades. Learn more about our expertise here.