{"id":1047948,"date":"2023-02-16T08:30:00","date_gmt":"2023-02-16T08:30:00","guid":{"rendered":"https:\/\/www.capgemini.com\/?post_type=press-release&#038;p=861485"},"modified":"2023-07-17T01:22:45","modified_gmt":"2023-07-17T01:22:45","slug":"telcos-expected-to-invest-1-billion-in-cloud-transformation-to-enable-a-future-connected-world-2","status":"publish","type":"press-release","link":"https:\/\/www.capgemini.com\/in-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=\"grid-container\"><div class=\"col-12 col-md-2\"><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><div class=\"article-text article-quote-text\">\n<p><strong>Paris, February 16 2023 \u2013<\/strong><strong> <\/strong><strong>New research <\/strong><strong>from the <\/strong><a href=\"https:\/\/www.capgemini.com\/researchinstitute\/\"><strong>Capgemini Research Institute<\/strong><\/a><strong> &#8211; \u2018<\/strong><a href=\"https:\/\/bit.ly\/3YKHUni\"><strong>Networks on cloud: A clear advantage<\/strong><\/a><strong>\u2019 &#8211; reports that <\/strong><strong>nearly a half of telco (46%) network capacity will be entirely cloud-native<a href=\"#_ftn1\" id=\"_ftnref1\"><strong>[1]<\/strong><\/a> in the next 3-5 years. To achieve this transformation, telco companies <\/strong><strong>are each predicted to invest at least $200 million per year on average in cloud transformation during the same period. \u2018Early adopters\u2019<a href=\"#_ftn2\" id=\"_ftnref2\"><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>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>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 optimize 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 realize $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><strong>An ecosystem approach via telco cloud will enable new business opportunities<\/strong><\/p>\n\n\n\n<p>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>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>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 centers, 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><strong>More than a third of greenhouse gas emission reduction <\/strong><strong>achieved through telco cloud<\/strong><\/p>\n\n\n\n<p>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><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>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><strong>Methodology<\/strong><\/p>\n\n\n\n<p>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><a href=\"#_ftnref1\" id=\"_ftn1\">[1]<\/a> \u2018Cloud-based\u2019 or \u2018cloud-native\u2019 networks as those composed of network functions in a containerized form and deployed directly on cloud infrastructure as \u201ccloud-native\u201d.<\/p>\n\n\n\n<p><a href=\"#_ftnref2\" id=\"_ftn2\">[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 virtualized; they expect a majority of their network capacity (&gt;50%) to be on cloud.<\/p>\n\n\n\n<p><a href=\"#_ftnref3\" id=\"_ftn3\">[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\">artificial intelligence<\/a>.<\/p>\n\n\n\n<p><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><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><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 85% of banks\u2019 corporate clients plan to engage with a non-bank financial institution within the next year as competition with private capital intensifies\" href=\"https:\/\/www.capgemini.com\/in-en\/news\/press-releases\/85-of-banks-corporate-clients-plan-to-engage-with-a-non-bank-financial-institution-within-the-next-year-as-competition-with-private-capital-intensifies\/\" class=\"anchorWrapper\">\n\t\t\t\t\t\t\t\t\t<span class=\"box-tag\"><span>Reports<\/span><\/span>\n\t\t\t\t\t\t\t\t\t<div class=\"box-title\"><h3 class=\"box-subtitle\">85% of banks\u2019 corporate clients plan to engage with a non-bank financial institution within the next year as competition with private capital intensifies<\/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>Mar 16, 2026<\/span>\n\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t<div class=\"box-bottom\">\n\t\t\t\t\t\t\t\t\t\t&lt;a class=&quot;link-download&quot; 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href=&quot;https:\/\/www.capgemini.com\/wp-content\/uploads\/2026\/03\/03_09_Capgemini_Piterion.pdf&quot; aria-label=&quot;Download Press Release&quot; target=&quot;_blank&quot;  type=&quot;download&quot; title=&quot;Opens in a new window&quot;&gt;\n\t\t\t\t\t\t\t&lt;span&gt;Download press release&lt;\/span&gt;\n\t\t\t\t\t\t\t&lt;span&gt;130 KB PDF&lt;\/span&gt;\n\t\t\t\t\t\t&lt;\/a&gt;\n\t\t\t\t\t\t\t\t\t\t<a class=\"more\" aria-label=\"Read more about Capgemini to acquire leading independent product lifecycle management and industrial digitalization specialist, Piterion\" href=\"https:\/\/www.capgemini.com\/in-en\/news\/press-releases\/capgemini-to-acquire-leading-independent-product-lifecycle-management-and-industrial-digitalization-specialist-piterion\/\">Read more about<\/a>\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<\/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":"{\"uuid\":\"0341b12b-c9f4-416c-b7c5-27f081032cde\",\"blogId\":\"\",\"domain\":\"\",\"sitePath\":\"\",\"postLink\":\"\",\"postId\":null,\"isSaved\":true,\"isCrossLink\":false,\"hasCrossLink\":false}","cg_seo_hreflang_x_default_relation":"{\"uuid\":\"7397596e-d301-45fd-acec-06b93326091c\",\"blogId\":\"\",\"domain\":\"\",\"sitePath\":\"\",\"postLink\":\"\",\"postId\":null,\"isSaved\":true,\"isCrossLink\":false,\"hasCrossLink\":false}","cg_dt_approved_content":true,"cg_dt_mandatory_content":false,"cg_dt_notes":"","cg_dg_source_changed":false,"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-1047948","press-release","type-press-release","status-publish","hentry"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.8 (Yoast SEO v22.8) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Telcos expected to invest $1 billion on average in network cloud transformation to enable a future connected world - Capgemini India<\/title>\n<meta name=\"description\" content=\"New research from the Capgemini Research Institute - \u2018Networks on Cloud: A Clear Advantage - Why and how telco networks should transform to cloud\u2019 - 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.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.capgemini.com\/news\/press-releases\/telcos-expected-to-invest-1-billion-in-cloud-transformation-to-enable-a-future-connected-world\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Telcos expected to invest $1 billion on average in network cloud transformation to enable a future connected world\" \/>\n<meta property=\"og:description\" content=\"New research from the Capgemini Research Institute - \u2018Networks on Cloud: A Clear Advantage - Why and how telco networks should transform to cloud\u2019 - reports that nearly a half of telco (46%) network capacity will be entirely cloud-native in the next 3-5 years. 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