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    Home5G & BeyondNavigating the cloud: telcos evolve in the digital era

    Navigating the cloud: telcos evolve in the digital era

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    Partner content: Operators integrating cloud technology into their core networks, transport and RAN infrastructure are reshaping the industry’s future

    This digital transformation in the network, fostered by 5G but initiated with the 4G core virtualisation, marks a pivotal shift from traditional, hardware-centric networks to software-driven, cloud-based architectures. With this transition, operators can dynamically allocate resources, automate processes, and rapidly deploy new services, enabling them to stay agile and competitive in an ever-evolving market landscape.

    Beyond the technical challenges, cultural and organisational shifts are imperative for the successful adoption of cloud-native practices. Telecom operators must cultivate a culture of innovation, collaboration and continuous learning within their teams. Embracing DevOps principles, breaking down silos between departments, and fostering a mindset of experimentation and adaptation are crucial elements in harnessing the full potential of cloud technology.

    By aligning their people, processes, and technology with the principles of agility and flexibility, Telecom operators can truly unlock the transformative power of the cloud in shaping the future of the industry.

    However, to succeed in this journey, some key points must be addressed. 

    Cloud technology is not new

    Telecom operators have been moving to the cloud for quite some time, and this journey is familiar, especially for the IT teams. However, for the network teams, things are more complex.

    For example, when Network Functions Virtualisation (NFV) appeared, the first feedback from network engineers was: “Why do I need this?”. For some use cases, NFV was more expensive. So, why did we begin to virtualise the core network and have worse results than other cloud migrations in the BSS domain? The answer is complex, but the basis of it is one of the main pain points in every digital transformation: culture. The best deployments of NFV were from the teams that created a true DevOps culture for the network’s cloudification.

    Virtualised core is not new either

    The core network, the backbone of telecom operations, is transforming significantly. Adopting cloud-native principles and technologies within the core network architecture promises improved operational agility, enhanced service delivery, and reduced operating costs. Nowadays, most of the operators have the 4G core and IP Multimedia Subsystem (IMS) 100% virtualised, and for most of them, the results achieved were good, but not great.

    The holy grail of cloud-native has not yet been achieved. Some crucial issues still need to be addressed to become a true cloud-native core:

    1. There must be no cloud fragmentation, and projects such as Sylva are fundamental for this.
    2. The VNF/ Cloud-Native Network Functions (CNFs) vendors must update their applications.
    3. A proper AIOps solution is still needed to efficiently manage these VNFs/CNFs.

    However, not everything is bad news at the core. The RAN is still taking its first steps in cloudification. But we’ll delve deeper into that in the next chapter.

    RAN cloudification

    The modernisation of the RAN, a critical and costly domain of the telecom network responsible for the wonders of mobile phones, is pivotal in this era of rapid technological evolution. The cloudification of the RAN, denoted as Cloud-RAN or C-RAN, involves transitioning RAN functions to a virtualised environment in the cloud.

    This approach promises operational efficiencies and cost savings and opens new avenues for service innovation. By leveraging cloud capabilities, Telecom operators can deploy new services more swiftly and flexibly, responding more effectively to market demands and customer needs.

    All this sounds great. The virtualisation of the core is going well. So, why is RAN still in its early stages? The answer is that virtual core efficiency still needs to be acceptable for the thousands of mini-data centers for RAN workloads.

    We should not change or force digital transformations because it is a trend; we must always do it with a business case to support the decision, and for the RAN, most operators do not have a business case for cloudification. However, with the implementation of cloud-native workloads on the core, this will undoubtedly change.

    Open RAN’s role in digital transformation

    Open RAN is excellent. Period. Nevertheless, we need to talk about the role of Open RAN in paving the way for RAN cloudification. The standards and the tests that are being done (in this case, I’m referring to the disaggregation of the BBU in CU and DU) are fundamental to starting the massive RAN cloudification.
    Conclusions

    The move towards cloud-based telecom networks brings significant operational efficiencies and opportunities for cost optimisation. Virtualisation and cloudification enable Telecom operators to utilise their infrastructure better, reduce reliance on physical hardware, and lower energy consumption. These changes contribute to a more sustainable operation model and align with the global push towards greener technologies.

    The transformation of telecom networks through cloud integration, core evolution, and RAN modernisation opens many opportunities for innovation and monetisation. Telecom operators are now better positioned to develop and deploy new services catering to diverse customer needs, such as 5G Mobile Private Networks (MPN) slicing, edge computing, and IoT solutions. This potential for innovation and operational efficiency sets the stage for Telecom operators to explore new business models and revenue streams.

    Moreover, collaboration among Telecom operators, technology vendors, and other stakeholders is paramount in driving this transformation. The collective effort towards standardisation, security, and skill development is critical in realising the full potential of cloud-based telecom networks.

    The author

    André Antunes Vieira is Operational Intelligence Lead at Celfocus.

    André Vieira started his career providing consulting and engineering services in telecommunications, developing and leading several projects focused on telcos across Europe, Africa, and Asia.

    In 2021, he joined Celfocus to manage the Celfocus Order Management Product. He refined product offerings and managed customer relationships and partnerships.

    He is now leading the offer of a Business Unit – Operational Intelligence – that combines technologies and professional services that speed up the delivery of the foundations of digital transformation while leveraging the Telecom Operator ecosystem.

    Since February 2023, he has also been the leader of the communication and adoption working group for Project Sylva, a Linux Foundation Europe project

    Email: andre.antunes.vieira@celfocus.com