In search of new business opportunities, which leverage the strengths of their networking and communications services, telcos are extending traditional networks through capabilities that support new AI economies required in modern application integrations and intelligent workflow automations.
New cloud opportunities include providing customers and partners with API services; helping implement Kubernetes container orchestration; AI/GenAI integrations and consulting; and additional emerging DevOps solutions including modern visibility/observability.
Telcos moving up the cloud stack
“Last week’s MWC conference in Barcelona (Spain) confirmed telecommunications and networking providers are more determined than ever to move up the cloud stack and play a greater role in enterprise business transformation,’’ said Charlotte Dunlap, Research Director for GlobalData.
Setting this new course is not easy, however, and challenges come with moving further up the cloud stack. Over the past couple years, telcos struggled with the launch and monetisation of new API services, including determining how to attract an entirely new community of enterprise developers. While developers are anxious to get their hands on advanced communications features that would enhance their modern apps, they were ill-equipped to integrate the complex networking configurations required.
Developers lean heavily on open-source software (OSS) technology and industry standards, especially those associated with emerging technologies such as containerisation. Infrastructure providers sorely lack standardised and industry-tested APIs associated with networks.
Efforts have been underway to rectify the situation through CAMARA, the Linux Foundation’s open-source project, which is also associated with the GSMA Open Gateway. The project is supported by 69 operator groups worldwide.
“In addition to new APIs, telcos will also strive to advance their digital transformation strategy by partnering with platform providers to support their core base of customers’ Kubernetes container orchestration rollouts. They recognise the opportunity to move into the DevOps space, sensing not only customers’ lack of internal expertise in emerging technologies such as intelligent automation, security, AIOps, and observability, but their inability to fathom exactly where to begin,’’ Dunlap said.
AI will dominate investment
Because generative AI (GenAI) represents a key example of low-hanging fruit on which to launch platform services, copilots and agentic AI will dominate investment and product roadmap priorities for telco/networking players.
“More than ever, it’s become clear the changing ecosystem for enterprise business transformations has significantly broadened and is now represented by telcos, networking companies, SPs/CSPs, GSIs, and of course cloud providers,’’ she added.
