Dell'Oro tempers public telco cloud hype
Amid all the excitement about the role that hyperscalers can play in telco cloud, a new prediction from Dell'Oro this week should keep everyone's feet firmly rooted to terra firma.
August 5, 2022
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Amid all the excitement about the role that hyperscalers can play in telco cloud, a new prediction from Dell’Oro this week should keep everyone’s feet firmly rooted to terra firma.
The research outfit on Wednesday said it expects that from this year through to 2026, cumulative revenues from hosting 5G workloads in the public cloud will reach $4.6 billion. While that represents a compound annual growth rate (CAGR) of 88 percent, it’s still a modest sum. By way of comparison, Dell’Oro last year predicted that from 2021 to 2025, cumulative investments in mobile core networks – which will increasingly be deployed in the cloud in some way, shape or form as 5G standalone (SA) rollouts accelerate – are expected to total $50 billion.
This suggests that in the immediate future, hyperscale cloud providers (HCPs), as Dell’Oro calls them, won’t be the first port of call for telcos migrating their infrastructure to the cloud, and they will prefer instead to use their own dedicated private telco clouds.