Redefining the future of telecommunications

We’re in the midst of a mobile telecom revolution. The transition from physical network functions to cloud-based operations is underway, and it’s changing the definition of what it means to be a telecom provider. As network operators and service providers grapple with the demands of a digital-first world, cloud native is emerging as a pivotal solution for the rapid rollout of new services. According to recent research, almost one-third (31%) of global network capacity is being serviced exclusively by the cloud, and that figure is expected to increase to around 45% within the next five years.

But what does cloud native truly mean for operators, and why is it so crucial?

The benefits of cloud-native architecture

Cloud native is more than just a technological shift — it’s a strategic one. Moving from physical network functions (Network 1.0) to virtualized networks (Network 2.0) and eventually to cloud-native networks (Network 3.0) has, with each step, allowed telcos to close the gap between the demand and supply of digital services. It’s crucial to understand the difference between cloud-native architecture and basic public or private cloud deployment. Cloud-native architecture refers to the design and implementation of applications built based on innovations created by public cloud providers and open source developers — but not limited to one or even any public cloud deployment. 

We’ll explore how cloud-native architecture works, but suffice it to say that by developing and deploying services and network operations with a cloud native architecture, telcos can develop, test and deploy applications more rapidly and achieve a much faster time-to-market. They can also more easily scale their services to meet demand, making it easier to handle spikes in traffic such as those witnessed during the COVID-19 pandemic.

But it’s not just about service delivery — it’s about operational efficiency. Automation and orchestration capabilities in cloud-native environments allow telcos to optimize operations, reduce manual interventions and improve overall service quality. According to a study by the Capgemini Research Institute titled “Networks on Cloud: A Clear Advantage,” a typical telco can improve its network total cost of ownership (TCO) by $260 to $380 million and gain an early-mover advantage to the tune of $110 to $210 million in additional revenue.

By all accounts, when it comes to establishing a competitive foothold in a modern telco environment, cloud native is no longer optional. Cloud and cloud native go together. If you really want to take full advantage of the cloud, whether private or public, you have to be cloud native. Otherwise, none of the flexibility, agility and scalability associated with the cloud can be fully achieved.

The philosophy of cloud-native architecture

Cloud-native architecture is centered around the design, development and deployment of applications in a manner that harnesses the full potential of cloud computing.

For network operators, the implications of adopting a cloud-native approach are profound. Instead of relying on the same static, monolithic architectures that have been around for years, cloud native emphasizes the use of microservices – smaller, independent application modules designed and developed with a cloud-first mindset. Operators can develop various microservices to provide individual services, which can then be hosted in containerized environments that provide a consistent runtime environment. This means operators can develop and scale new services independently of one another, allowing operators to take a more granular approach to innovation without putting existing services at risk. Effectively orchestrating these containers is one of the fundamental principles of running a successful cloud-native environment.

If monolithic architecture was an old building, parts of it would have to be broken down and rebuilt to innovate. With its containerized approach, cloud-native architecture would allow individual bricks to be replaced or moved at will without impacting the building’s overall integrity. The result is rapid, cost-effective innovation with minimal disruption or downtime and the ability to rapidly deploy and update services to ensure network operators can stay ahead of customer demands and industry trends. Going cloud-native is about future-proofing operations and ensuring a competitive advantage in a digital-first environment.

Orange CTO, Arnaud Vamparys, said on a 2023 panel discussion, "When discussing the cloud, it's essentially about choosing the environment for deploying workloads or CNFs, be it public or private. On the other hand, 'cloud native' encompasses a broader spectrum, from service-based microservices, APIs and containers to Kubernetes and automation. It's not just about the technology but also the environment where the network is deployed."

Deploying cloud native

Orange recently took strides toward cloud native with its “Pikeo” project. Pikeo is an experimental network initiative established in 2021 to enhance the company's understanding of cloud-native technologies. The project focuses on how a cloud-oriented, open API-based, automated, disaggregated, multi-vendor 5G standalone (SA) network might function and be optimally deployed. Through Pikeo, Orange has made significant strides in software and data-based, fully automated networks. The network models developed under Pikeo enable Orange to run private 5G networks on multi-cloud platforms, either on their infrastructure or on platforms like Amazon Web Services (AWS). The project has been instrumental in Orange's journey towards faster network deployments, enhanced security and improved automation.

Arnaud added, “Moving to a cloud-native network is akin to charting a journey. It starts with a clear vision, followed by a step-by-step roadmap and culminates in creating the right ecosystem. At the heart of this transformation is Pikeo, our program designed to foster an end-to-end cloud-native automated 5G network. It's not just about technology; it's about agility, resilience and delivering unparalleled performance for our customers."

The need for speed

The digital service economy demands speed. In this regard, as the telco industry transitions towards 5G standalone, the significance of cloud-native architecture cannot be overstated. Cloud-native design, characterized by its modularity, scalability and resilience, aligns seamlessly with the demands of 5G, which promises unprecedented speeds, ultra-reliable low latency and massive device connectivity. In other words, if telcos are to deliver on the promises of 5G, they need the flexibility and resources to orchestrate their services efficiently.

Transitioning to the cloud is fundamentally a business decision. In today's market, the decision is almost made for operators, presenting a clear choice: adapt or risk obsolescence. Therefore, it's evident that the best approach to BSS and charging is cloud native, reflecting the ever-evolving telecom industry and needs of operators.

For telcos, adopting a cloud-native approach ensures that their infrastructure is agile, allowing for the rapid deployment of new services and efficient resource utilization. This agility is crucial in the face of evolving consumer expectations and the rise of digital service providers (DSPs), constantly innovating to introduce new digital experiences and leverage the BSS data gold mine to continuously personalize the customer experience. By embracing cloud-native architectures, telcos position themselves at the forefront of the digital transformation wave, ensuring they remain competitive and relevant in a 5G-driven landscape.

Craig Clapper is the Vice President of Global Managed Services and Support at Optiva. He joined Optiva in July 2022, bringing over 20 years of telecoms experience. Prior to joining Optiva, Craig held several leadership roles at various organizations including Ericsson, Aeris Communications and Tait Communications.