{"id":592725,"date":"2023-02-16T08:30:00","date_gmt":"2023-02-16T07:30:00","guid":{"rendered":"https:\/\/www.capgemini.com\/?post_type=press-release&#038;p=861485"},"modified":"2025-03-10T09:31:33","modified_gmt":"2025-03-10T09:31:33","slug":"telcos-expected-to-invest-1-billion-in-cloud-transformation-to-enable-a-future-connected-world","status":"publish","type":"press-release","link":"https:\/\/www.capgemini.com\/gb-en\/news\/press-releases\/telcos-expected-to-invest-1-billion-in-cloud-transformation-to-enable-a-future-connected-world\/","title":{"rendered":"Telcos expected to invest $1 billion on average in network cloud transformation to enable a future connected world"},"content":{"rendered":"\t\t<div class=\"wp-block-cg-blocks-hero-press-release\">\n\t\t\t<header class=\"header-hero-press-release\" role=\"main\" id=\"main-content-press-release\">\n\t\t\t\t<div class=\"container\">\n\t\t\t\t\t<div class=\"hero-press-release\">\n\t\t\t\t\t\t<div class=\"hero-press-release-content-wrapper\">\n\t\t\t\t\t\t\t<div class=\"row\">\n\t\t\t\t\t\t\t\t<div class=\"col-12\">\n\t\t\t\t\t\t\t\t\t<div class=\"header-title\">\n\t\t\t\t\t\t\t\t\t\t<h1>\n\t\t\t\t\t\t\t\t\t\t\tTelcos expected to invest $1 billion on average in network cloud transformation to enable a future connected world\t\t\t\t\t\t\t\t\t\t<\/h1>\n\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t<div class=\"header-description\">\n\t\t\t\t\t\t\t\t\t\t<p><\/p>\n\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<div class=\"header-date\">\n\t\t\t\t\t\t\t\t\t\t<span>Feb 16, 2023<\/span>\n\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<div class=\"hero-press-release-downloads\">\n\t\t\t\t\t\t\t\t<div class=\"row\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<div class=\"col-12 col-md-6 col-lg-3\">\n\t\t\t\t\t\t\t\t\t\t\t<a class=\"download-item\" type=\"download\" href=\"https:\/\/www.capgemini.com\/wp-content\/uploads\/2023\/02\/2023_02_16_-Capgemini_Networks-on-Cloud-Report_Press-Release.pdf\" target=\"_blank\" rel=\"noopener noreferrer\" title=\"Opens in a new window\">\n\t\t\t\t\t\t\t\t\t\t\t\t<div class=\"download-icon\"><\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t<div class=\"download-details\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t<div class=\"download-title\">Download News Alert<\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<div class=\"download-props\">109 KB  pdf<\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<div class=\"col-12 col-md-6 col-lg-3\">\n\t\t\t\t\t\t\t\t\t\t\t<a class=\"download-item\" type=\"download\" href=\"https:\/\/www.capgemini.com\/wp-content\/uploads\/2023\/02\/Final-Infographic-Cloudification-of-Networks.pdf\" target=\"_blank\" rel=\"noopener noreferrer\" title=\"Opens in a new window\">\n\t\t\t\t\t\t\t\t\t\t\t\t<div class=\"download-icon\"><\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t<div class=\"download-details\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t<div class=\"download-title\">Download Infographic<\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<div class=\"download-props\">671 KB  pdf<\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t<\/header>\n\t\t<\/div>\n\t\t\n\n\n<section class=\"wp-block-cg-blocks-group undefined section section--article-content\"><div class=\"article-main-content\"><div class=\"container\"><div class=\"row\"><div class=\"col-12 col-md-1\"><nav class=\"article-social\"><ul class=\"social-nav\"><li class=\"ip-order-fb\"><a href=\"https:\/\/www.facebook.com\/sharer\/sharer.php?=http:\/\/capgeminiucwe.develop\/?post_type=press-release&amp;p=179\" target=\"_blank\" rel=\"noopener noreferrer\" title=\"opens in a new window\"><i aria-hidden=\"true\" class=\"icon-fb\"><\/i><span class=\"sr-only\">Facebook<\/span><\/a><\/li><li class=\"ip-order-tw\"><a href=\"https:\/\/twitter.com\/intent\/tweet?=http:\/\/capgeminiucwe.develop\/?post_type=press-release&amp;p=179\" target=\"_blank\" rel=\"noopener noreferrer\" title=\"opens in a new window\"><i aria-hidden=\"true\" class=\"icon-tw\"><\/i><span class=\"sr-only\">Twitter<\/span><\/a><\/li><li class=\"ip-order-li\"><a href=\"https:\/\/www.linkedin.com\/shareArticle?=http:\/\/capgeminiucwe.develop\/?post_type=press-release&amp;p=179\" target=\"_blank\" rel=\"noopener noreferrer\" title=\"opens in a new window\"><i aria-hidden=\"true\" class=\"icon-li\"><\/i><span class=\"sr-only\">Linkedin<\/span><\/a><\/li><\/ul><\/nav><\/div><div class=\"col-12 col-md-11 col-lg-10\"><div class=\"article-text article-quote-text\">\n<p class=\"wp-block-paragraph\"><strong>Paris, February 16 2023 \u2013 New research from the <\/strong><a href=\"https:\/\/www.capgemini.com\/gb-en\/researchinstitute\/\"><strong>Capgemini Research Institute<\/strong><\/a><strong> &#8211; \u2018<\/strong><a href=\"https:\/\/bit.ly\/3YVL7AQ\"><strong>Networks on cloud: A clear advantage<\/strong><\/a><strong>\u2019 &#8211; reports that nearly a half of telco (46%) network capacity will be entirely cloud-native<a id=\"_ftnref1\" href=\"#_ftn1\"><strong>[1]<\/strong><\/a> in the next 3-5 years. To achieve this transformation, telco companies are each predicted to invest at least $200 million per year on average in cloud transformation during the same period. \u2018Early adopters\u2019<a id=\"_ftnref2\" href=\"#_ftn2\"><strong>[2]<\/strong><\/a> are expected to reap the most benefits from a financial, business and sustainability perspective.<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The report highlights that investment priorities within the next 5 years are focused on technology infrastructure, representing one third of overall telco cloud[1] investment, followed by Research &amp; Development (18%) &#8211; this includes making networks more automated through the support of Artificial Intelligence (AI) and Machine Learning<a href=\"#_ftn3\" id=\"_ftnref3\">[3]<\/a>. Private cloud is the preferred cloud deployment model.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">According to the research, \u2018early adopters\u2019 of cloud-based telco platforms expect to recover almost half (47%) of their investment within this period. The financial benefits from telco cloud make a convincing business case for investment: Telcos are expecting to optimise network Total Cost of Ownership (TCO) by 13%, resulting in cost savings of up to $260 to 380 million per year per operator. They also expect to realise $110 to 210 million per year in additional revenues from attaining early-mover status in markets enabled by cloud-based platforms.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>An ecosystem approach via telco cloud will enable new business opportunities<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Telco companies that have initiated their cloud transformation over the last 3 to 5 years cite notably increased \u2018customer lifetime value\u2019<a href=\"#_ftn4\" id=\"_ftnref4\">[4]<\/a>, and improved customer experience amongst the top business drivers. Customer lifetime value can increase as a result of cross-selling and upselling more value-added services to existing customers and increasing loyalty benefits to mitigate attrition.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">One of the key opportunities offered by cloud telco transformation is the deployment of an Open RAN<a href=\"#_ftn5\" id=\"_ftnref5\">[5]<\/a> network architecture, an ecosystem-based approach that has the potential to unlock innovation, lower TCO, and uncover new revenue opportunities.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">According to the research, the telco cloud transformation is expected to also enable quick rollout of some industry-specific use cases for enterprises and end-consumers, especially in the 5G context; for example, highly automated smart factories, private 5G networks at distribution centres, ports, oil fields, mines, chemical storage, and processing units, remote surgeries, Augmented reality\/Virtual reality (AR\/VR) or Metaverse-enabled remote operations, monitoring, and training.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>More than a third of greenhouse gas emission reduction <\/strong><strong>achieved through telco cloud<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The report highlights that besides business benefits, telcos that have undertaken cloud transformation expect to reduce their greenhouse gas (GHG) emissions by 5%, which represents one third of expected overall reduction of networks carbon footprint in the next 3 to 5 years. Owing to their strong preference for private cloud architecture, Telcos are expecting sustainability benefits on emissions from their direct sources (Scope 1 and 2<a href=\"#_ftn6\" id=\"_ftnref6\">[6]<\/a>) due to lower emissions from facilities, including reduced physical hardware footprint, reduced power usage, auto-scaling of network on demand, and managing power consumption of mobile towers by using AI and Machine Learning.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><em>\u201c<\/em><em>Cloud transformation is a fundamental change in the evolution of the network, that has been dominated by physical devices and infrastructure. It represents a significant change of mindset for Telcos,\u201d <\/em>saidJacques Assaraf, Global Head of Telco Industry at Capgemini. \u201c<em>Telcos are ideally placed to explore opportunities offered by cloud and <\/em><em>federate an ecosystem around themselves<\/em><em> to unlock innovative use cases, uncover new sources of revenue, and capture the full value of 5G and connected industries. E<\/em><em>arly adopters will reap the most benefits in markets enabled by cloud-based platforms, not just financially but also from a business and sustainability perspective.\u201d<\/em><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For more information or to download the report, visit: <a href=\"https:\/\/bit.ly\/3YKHUni\">link to report<\/a>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Methodology<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The Capgemini Research Institute surveyed 270 executives from large Communications Service Providers (CSPs), Network Equipment Providers (NEPs), Niche Equipment Vendors (NEVs), hyperscalers, Containers as a Service (CaaS) vendors, and large cloud providers. Of these, 170 executives belong to CSPs, 50 to NEPs and NEVs, and 50 to hyperscalers, CaaS vendors and large cloud providers. In-depth interviews were also conducted with 25 industry executives.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p class=\"wp-block-paragraph\"><a id=\"_ftn1\" href=\"#_ftnref1\">[1]<\/a> \u2018Cloud-based\u2019 or \u2018cloud-native\u2019 networks as those composed of network functions in a containerised form and deployed directly on cloud infrastructure as \u201ccloud-native\u201d.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><a id=\"_ftn2\" href=\"#_ftnref2\">[2]<\/a> \u2018Early Adopters\u2019 refer to the most advanced on the below 3 dimensions: presence of a comprehensive telco cloud strategy with well-defined goals and timelines; Proportion of network functions that have been virtualised; they expect a majority of their network capacity (&gt;50%) to be on cloud.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><a id=\"_ftn3\" href=\"#_ftnref3\">[3]<\/a> Machine learning&nbsp;(ML) is a field of inquiry devoted to understanding and building methods that &#8220;learn&#8221;&nbsp;\u2013 that is, methods that leverage data to improve performance on some set of tasks.<a href=\"https:\/\/en.wikipedia.org\/wiki\/Machine_learning#cite_note-1\"><\/a>&nbsp;It is seen as a part of&nbsp;<a href=\"https:\/\/en.wikipedia.org\/wiki\/Artificial_intelligence\" target=\"_blank\" rel=\"noreferrer noopener\">artificial intelligence<\/a>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"#_ftnref4\" id=\"_ftn4\">[4]<\/a> &#8216;Customer lifetime value\u2019the total amount of money a customer spends with a business during the lifetime of a typical transactional relationship.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"#_ftnref5\" id=\"_ftn5\">[5]<\/a> Open RAN stands for&nbsp;open radio access network where network functions in RAN can be assembled from a variety of providers collaborating on a standard set of protocols and specifications.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"#_ftnref6\" id=\"_ftn6\">[6]<\/a> Scope 1 greenhouse gas emissions are direct emissions released to the atmosphere from owned or controlled sources. Scope 2 emissions are indirect emissions from the generation of purchased energy.<\/p>\n<\/div><\/div><\/div><\/div><\/div><\/section>\n\n\n<div class=\"wp-block-cg-blocks-cg-block-related-content\"><section class=\"relatedContentBlock\"><div class=\"container\"><div class=\"row\"><div class=\"content-title col-12 col-md-8\"><h2 class=\"related-content-heading\">Related news<\/h2><\/div><\/div><div class=\"row relatedContent\"><div class=\"col-lg-4 col-md-6 col-xs-12\">\n\t\t\t\t\t\t\t<div class=\"box\">\n\t\t\t\t\t\t\t\t<a aria-label=\"Read more about Capgemini upgrades its 2026 outlook\" href=\"https:\/\/www.capgemini.com\/gb-en\/news\/press-releases\/capgemini-upgrades-its-2026-outlook\/\" class=\"anchorWrapper\">\n\t\t\t\t\t\t\t\t\t<span class=\"box-tag\"><span>Financial news<\/span><\/span>\n\t\t\t\t\t\t\t\t\t<div class=\"box-title\"><h3 class=\"box-subtitle\">Capgemini upgrades its 2026 outlook<\/h3><\/div>\n\t\t\t\t\t\t\t\t\t<div class=\"box-date\">\n\t\t\t\t\t\t\t\t\t\t<span>Jul 30, 2026<\/span>\n\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t<div class=\"box-bottom\">\n\t\t\t\t\t\t\t\t\t<a class=\"link-download\" href=\"https:\/\/www.capgemini.com\/wp-content\/uploads\/2026\/07\/Capgemini_-_2026-07-30_-_2026_Half-year_Results.pdf\" aria-label=\"Download Press Release\" target=\"_blank\" rel=\"noopener noreferrer\" title=\"Opens in a new window\">\n\t\t\t\t\t\t\t<span>Download press release<\/span>\n\t\t\t\t\t\t\t<span>262 KB PDF<\/span>\n\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t\t<a class=\"more\" aria-label=\"Read more about Capgemini upgrades its 2026 outlook\" href=\"https:\/\/www.capgemini.com\/gb-en\/news\/press-releases\/capgemini-upgrades-its-2026-outlook\/\">Read more about<\/a>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div><div class=\"col-lg-4 col-md-6 col-xs-12\">\n\t\t\t\t\t\t\t<div class=\"box\">\n\t\t\t\t\t\t\t\t<a aria-label=\"Read more about Capgemini named 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Capgemini and the Tour de France bring fans personalised, AI-powered insights with \u2018Inside My Race\u2019\" href=\"https:\/\/www.capgemini.com\/gb-en\/news\/press-releases\/capgemini-and-the-tour-de-france-bring-fans-personalised-ai-powered-insights-with-inside-my-race\/\" class=\"anchorWrapper\">\n\t\t\t\t\t\t\t\t\t<span class=\"box-tag\"><span>Sponsorship news<\/span><\/span>\n\t\t\t\t\t\t\t\t\t<div class=\"box-title\"><h3 class=\"box-subtitle\">Capgemini and the Tour de France bring fans personalised, AI-powered insights with \u2018Inside My Race\u2019<\/h3><\/div>\n\t\t\t\t\t\t\t\t\t<div class=\"box-date\">\n\t\t\t\t\t\t\t\t\t\t<span>Jul 2, 2026<\/span>\n\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t<div class=\"box-bottom\">\n\t\t\t\t\t\t\t\t\t<a class=\"link-download\" href=\"https:\/\/www.capgemini.com\/wp-content\/uploads\/2026\/07\/07_02_Joint-Press-Release_Capgemini_TdF_Inside-My-Race.pdf\" aria-label=\"Download Press Release\" target=\"_blank\" rel=\"noopener noreferrer\" title=\"Opens in a new window\">\n\t\t\t\t\t\t\t<span>Download press release<\/span>\n\t\t\t\t\t\t\t<span>149 KB PDF<\/span>\n\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t\t<a class=\"more\" aria-label=\"Read more about Capgemini and the Tour de France bring fans personalised, AI-powered insights with \u2018Inside My Race\u2019\" href=\"https:\/\/www.capgemini.com\/gb-en\/news\/press-releases\/capgemini-and-the-tour-de-france-bring-fans-personalised-ai-powered-insights-with-inside-my-race\/\">Read more about<\/a>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div><\/div><\/div><\/section><\/div>","protected":false},"excerpt":{"rendered":"<p>New research from the Capgemini Research Institute &#8211; \u2018Networks on Cloud: A Clear Advantage &#8211; Why and how telco networks should transform to cloud\u2019 &#8211; reports that nearly a half of telco (46%) network capacity will be entirely cloud-native in the next 3-5 years. To achieve this transformation, telco companies are each predicted to invest at least $200 million per year on average in cloud transformation during the same period. \u2018Early adopters\u2019 are expected to reap the most benefits from a financial, business and sustainability perspective.<\/p>\n","protected":false},"author":376,"featured_media":0,"template":"","meta":{"cg_dt_proposed_to":[],"cg_seo_hreflang_relations":"[]","cg_seo_canonical_relation":"","cg_seo_hreflang_x_default_relation":"{\"uuid\":\"4c5733f1-cbd0-4cc8-abf7-c5939ad6816b\",\"blogId\":\"\",\"domain\":\"\",\"sitePath\":\"\",\"postLink\":\"\",\"postId\":null,\"isSaved\":false,\"isCrossLink\":false,\"hasCrossLink\":false}","cg_dt_approved_content":true,"cg_dt_mandatory_content":false,"cg_dt_notes":"","cg_dg_source_changed":true,"cg_dt_link_disabled":false,"footnotes":"","related_resource_url":"https:\/\/www.capgemini.com\/wp-content\/uploads\/2023\/02\/2023_02_16_-Capgemini_Networks-on-Cloud-Report_Press-Release.pdf","related_resource_id":861857,"related_resource_size":"109 KB","related_resource_type":"pdf","cg_author":0,"featured_focal_points":""},"tags":[],"press-release-type":[],"brand":[],"class_list":["post-592725","press-release","type-press-release","status-publish","hentry"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.7 (Yoast SEO v27.8) - 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