What's Happening?
Omdia has released a report forecasting significant growth in global spending on telco network cloud infrastructure and software, projecting an increase from $17.4 billion in 2025 to $24.8 billion by 2030.
This growth is driven by the adoption of cloud-native network functions and AI-driven automation. The report notes a 12% growth in cloud adoption among communications service providers in 2025, double 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. Public cloud usage for network workloads is expected to increase significantly, with hyperscalers offering telco-specific solutions.
Why It's Important?
The transformation towards AI and cloud-native network functions is crucial for telcos as they seek to modernize infrastructure and improve efficiency. This shift is expected to enhance automation capabilities, reduce operational costs, and improve service delivery. The projected growth in spending indicates a strong commitment to these technologies, which could lead to increased competitiveness and innovation in the telecommunications industry. Companies like Red Hat are leading the market, emphasizing the importance of cloud-native solutions in achieving automation goals.
What's Next?
Telcos are likely to continue investing in platforms that support both virtualized and containerized network functions. The focus will be on integrating AI and GenAI into network operations to enhance service delivery and operational efficiency. Vendors addressing this market segment are expected to embrace CI/CD pipelines and GitOps practices to automate the lifecycle of clusters and network workloads.
Beyond the Headlines
The integration of AI and cloud-native technologies in telco networks could lead to ethical and regulatory considerations, particularly concerning data privacy and security. As telcos adopt these technologies, they may need to navigate complex legal landscapes to ensure compliance with data protection regulations.
