Cloud-based networks to account for half of all cellular traffic by 2028

As operators deploy cloud infrastructure to improve network efficiency, and with hyperscalers and tech companies in general eyeing up the opportunities for software-based solutions in the market, the volume of cellular data serviced by the cloud is set to explode from 700,000 PB in 2024 to as much as 2.8 million PB in 2028, according to a study from Juniper Research.

Global telecommunications cloud strategies market 2024-2028 assessed the telecommunications cloud market in 60 countries using a dataset containing almost 11,000 market statistics over a five-year period.

Fundamentally, the study noted that the shift towards telecommunications cloudification has been triggered by virtualising network functions, replacing traditional network appliances with efficient virtualised functions using industry-standard computing equipment. As a result, said the analyst, standardised server hardware can be used for multiple purposes instead of bespoke and proprietary hardware.

Juniper believes that the expansion in cloud infrastructure will enable dynamic resource provisioning, allowing operators to increase the reliability of their 5G network services. This, it added, would enable operators to redistribute network resources to areas under strain, preventing network congestion.

Juniper calculates that operators will spend $26.6bn on telecommunications cloud in 2024, rising to $64.9bn in 2028. Driving this increase will be total cost of ownership pressured by data consumption, new 5G deployments expand cloud opportunities in telecommunications, and sustainability goals – such as net zero – necessitating the cloud.

In this, Juniper stressed that unlike in fixed wireless networks, the total cost of ownership in wireless cellular networks affected by the volume of data travelling over the network. This is because the radio access network is not dedicated to individual users, with network elements being allocated so that they are able to facilitate traffic generated by users. Juniper forecasts the total data generated over operator networks to increase from 1.929 PB in 2024 to 5.347 PB in 2028. The growth in total data was attributed to both increasing average data consumed per user and a rise in the total number of users.

An anticipated key feature is cloud-based dynamic resource provisioning, the process of distributing telecommunications network resources in near-real-time. Juniper believes that the transition to cloud-based 5G networks is key to enabling dynamic resource provisioning, allowing operators to easily reallocate computing resources for network functions. This automation Juniper predicts will enable operators to provision network resources in near-real time, due to the efficiency and speed provided.

The energy and smart cities sectors were highlighted as key market verticals for cloud-based 5G network service monetisation. Reliability was seen as essential in these market verticals due to their role as critical infrastructure, and operators must exploit this requirement by charging a premium to service providers.

“To charge a premium, operators must couple increased reliability with improved latency and throughput, providing prioritised network slices to connections where possible,” remarked the research author Alex Webb.

Going forward, the report urged operators to integrate automated dynamic resource provisioning with other forms of network automation and resource management, to ensure a unified approach. This, said the analyst, would be critical to maximising network efficiency and performance, as it prevents a chaotic collection of network resource management strategies and software.