Question 1

What is the actual business case for moving our core network functions to the cloud?

Accepted Answer

The transition from hardware-centric to software-defined architectures allows telcos to shift from CapEx-heavy models to OpEx-driven service-based architectures. This move enables massive efficiency gains, such as the 80% reduction in product development time achieved by Vodafone through hyperscale integration.

Question 2

Can we trust hyperscalers with our carrier-grade uptime requirements?

Accepted Answer

Full public cloud outsourcing is currently deemed too risky for incumbents due to the 99.999% uptime requirement of carrier-grade networks. A hybridisation model has emerged as the industry standard to balance cloud-native innovation with the operational stability of on-premise infrastructure.

Question 3

How much faster can we actually innovate using these platforms?

Accepted Answer

Leveraging hyperscaler R&D pipelines, specifically in AI and machine learning, drastically compresses development cycles. Vodafone reduced its AI development time by 90%, moving from a 20-week cycle to just 2 weeks by utilizing Google Cloud’s platform.

Question 4

What are the biggest risks to our long-term independence?

Accepted Answer

Technological lock-in and the erosion of service freedom pose existential risks that could reduce telcos to 'dumb pipes' for cloud providers. Data sovereignty remains the primary technical hurdle, forcing the adoption of sovereign cloud solutions to maintain regulatory compliance.

Telco-Hyperscale Strategies - Balancing Risks and Opportunities in Core Network Outsourcing

Abstract

Key Takeaways

What's Inside

Introduction

A New Architecture for Core Networks

Pioneering Operators and Market Divergence

Opportunities in Core Network Transformation

Systemic Risks and Executive Concerns

Mitigation Strategies: The Telco Counter-Offensive

Frequently Asked Questions