Insight

Navigating the 5G Frontier Why Multi Cloud Solutions are a Game Changer for Telcos

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The emergence of 5G technology has rapidly transformed the communications industry. The increasing need to accomplish the surging demands for high-speed, secure, and scalable connections has led to a significant reliance on cloud computing. Consequently, multi-cloud solutions are revolutionizing communication companies. In the era of 5G, this article discusses the need to deploy multi-cloud solutions, and how telecommunications companies can seize new opportunities.

Analyzing the term “multi-cloud” in the communications industry

Multi-cloud infrastructure involves deploying multiple cloud services to seamlessly store colossal data sets, manage workloads, and run applications across global locations. The term “multi-cloud” in the telecommunications sector describes using multiple cloud service providers to operate and manage infrastructure and communications services. Consequently, telcos are rapidly adopting this technology to stay competitive.

According to the latest IDC report, the cloud infrastructure software market for telecommunication industry is expected to grow to $27 billion by 2027, as companies accelerate their journeys.

Why the telecommunications industry is eager to adopt a multi-cloud strategy?

Challenges in Communications industry

In today’s dynamic digital landscape, communications companies encounter new challenges in rendering seamless communications services to their consumers. 

Service Disruptions and Downtime: Telcos easily lose revenue and customers due to downtime and interrupted services resulting from outages, as they usually engage with a single cloud provider. Hence, they require a robust solution to maintain superior customer satisfaction.

Performance and Latency: Telcos face challenges in gaining new customers in remote areas due to a lack of IT infrastructure. Their existing cloud service provider may not provide data centers across all regions where the Communications company operates. Consequently, customers in remote areas deal with call drops and latency issues due to poor network connection. 

Compliance: Regulations may require a communications company to store critical business and customer data in a specific geographical location or under special laws. Hiring a single cloud service provider with limited resources may fail to meet regulations, leading telcos to pay heavy penalties or close their operations in a specific location.

Limited Scalability: Telcos cannot scale beyond their current geographies, as their cloud service provider may lack the IT infrastructure and support required for expansion into new local or global markets, which limits scalability.

Vendor Lock-In: Telcos may struggle to provide improved services or innovate effectively due to their lock-in periods with their cloud service provider. With limited capabilities and a lock-in period, telecommunications companies find it costly to switch providers and negotiate better terms, leading to loss of revenues and new customers.

Cost Management: Telcos may find it expensive to operate with a single cloud provider, especially when the company’s usage pattern does not align with the provider’s price structure. Further, communications companies may overlook competitive pricing from other providers.

Limited Innovation and Flexibility: Telcos depending on a single provider may limit their access to innovative technologies that could augment their services and offerings. Hence, they require a solution that offers a blend of unique tools and services to meet their goals.

These challenges can be efficiently resolved by utilizing multi-cloud environments to improve service delivery, enhance customer experience, and drive innovation.

Benefits of implementing a multi-cloud strategy

Telcos can improve their security, scalability, flexibility, and reliability by deploying multi-cloud strategy.

Improve Downtime and Prevent Service Disruptions: By utilizing the power of multi-cloud strategy, communications companies can significantly mitigate the risk of disrupted communication services and downtime by distributing workloads across their multiple cloud vendors. They can quickly switch between their vendors if a provider is experiencing downtime, thus eliminating redundancy in their system, reducing the impact of outages, and improving their customer service.

Improve Performance and Reduce Latency: By employing different vendors, communications companies can quickly allocate resources to data centers in the required geographies, based on their user demand. Thus, they render enhanced cellular network to their customers by extending their IT infrastructure for improved performance and reduced latency.

Improved Compliance: By diversifying their approach to multi-cloud computing, communications companies can select providers that comply with regulatory requirements build for specific geographies and workloads, thus ensuring compliance with local laws and industry standards.

Enhanced Scalability: By selecting multiple cloud service providers with a strong global presence, telcos can meet local user demands and efficiently expand their business world-wide.

No Vendor Lock-in: By utilizing multi-cloud strategy, telecommunications companies can leverage the strengths of individual cloud service providers to render quality cellular network to their customers, while avoiding vendor lock-in, and operating cost-effectively.

Improved Innovation and Flexibility: By adopting a multi-cloud strategy, telecommunications companies can leverage premium tools and services from their multiple vendors to innovate better, and stay ahead of technological trends.

Use Case of deploying multi-cloud strategy

The emerging multi-cloud strategy is rapidly transforming the communications industry by enabling telecom operators to render a personalized and seamless experience to their customers through their Branded Customer Portal.

By leveraging the power of data analytics and artificial intelligence, telecommunications companies can gain valuable insights into customer behavior and preferences, enabling them to render customized services and offerings to their customers. Customers can access and manage their services, view billing information, and troubleshoot issues on the portal, anytime, anywhere.

Are you ready to begin your innovative 5G journey with a multi-cloud strategy, today?

Daten Technology Solutions
Daten Technology Solutions

Daten is a dynamic, forward-thinking accelerator in the technology landscape. With a Data First approach, deeply engrained in an engineering legacy and technology evolution, we solve technology challenges for businesses and industries. Our commitment to excellence and established track record of success positions us as a leading innovator. Contact us to discuss tailored solutions for your challenges.

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