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Infosys has released a new report titled 'Cloud Radar: Telecom Industry Report', focusing on cloud usage within the telecommunications sector and forecasting increased cloud expenditure.
The report elaborates on insights from Infosys' previous 'Cloud Radar 2023' report and incorporates perspectives from telecom industry practitioners, executives, and subject matter experts globally. It highlights the significant role of cloud in facilitating 5G deployment and enabling services like the Internet of Things, machine-to-machine communication, and robotics.
According to the report, 77% of telecom executives consider their cloud migration efforts to be very or extremely effective. This figure is slightly higher than the 73% of business leaders across various industries who also affirm the effectiveness of cloud migration efforts. Interviewed telecom executives note that cloud migration has resulted in cost savings, enhanced platform scalability, and the availability of new capabilities. These capabilities include cloud-native functions that feature microservices, continuous integration, and dynamic orchestration.
Telecommunications companies are reported to spend USD $32 million annually on cloud services, which is nearly the same as the overall average expenditure of USD $33 million. This expenditure is solely for cloud services, with additional funds allocated for infrastructure upgrades to optimize cloud platform usage.
The report highlights a significant underutilization of provisioned cloud resources, with telecom companies consuming only 48% of their committed cloud resources.
There is an increasing trend among telecom providers to adopt multi-cloud strategies. This approach is seen as essential for efficiently delivering 5G services, complying with local regulations, and ensuring secure service provision while accommodating evolving consumer needs.
Another finding is that 45% of telecom respondents allow any department head or IT manager to deploy new cloud infrastructure, software, or applications. This practice suggests a relaxed approach from a security standpoint.
Moreover, 44% of critical cloud decisions are reportedly made in isolation. Given the pervasive nature of cloud technology in corporate enterprises, decision-making should ideally involve leaders, technologists, and users collaboratively.
