What's Happening?
Omdia's latest report projects a significant increase in global spending on telco network cloud infrastructure and software, expected to grow from $17.4 billion in 2025 to $24.8 billion by 2030. This growth
is driven by a compound annual growth rate of 7.3%, fueled by the adoption of cloud-native tooling, automation frameworks, and the integration of AI and GenAI into network operations. The report highlights a 12% growth in cloud adoption among communications service providers (CSPs) in 2025, doubling the rate seen in 2024. Key trends include the critical role of AI/ML support in cloud infrastructure decisions and the rise of Kubernetes-based platforms.
Why It's Important?
The projected growth in telco network cloud spending underscores the industry's shift towards modernizing infrastructure to support cloud-native network functions and AI-driven automation. This transformation is crucial for telecom operators aiming to enhance efficiency and reduce operational costs. Vendors like NVIDIA, Red Hat, and VMware are leading the charge by enabling on-premises AI capabilities tailored for telco environments. The increased spending on cloud-native platforms and public cloud adoption reflects a strategic move by telcos to leverage advanced technologies for competitive advantage.
What's Next?
As telcos continue to modernize their infrastructure, the focus will likely shift towards further integrating AI and automation into network operations. Technology vendors addressing this market segment are expected to embrace CI/CD pipelines and GitOps practices to automate the lifecycle of clusters and network workloads. The rise in public cloud usage for network workloads, projected to increase from 3% in 2024 to 13% by 2030, indicates a growing reliance on hyperscalers offering telco-specific solutions.
Beyond the Headlines
The cloud-native transformation aligns with telecom operators' automation goals, potentially leading to long-term shifts in how network functions are managed and optimized. The emphasis on AI and machine learning in cloud infrastructure decisions may drive innovation in network management and service delivery, impacting the broader telecommunications landscape.
