OPINION: Hyperscale cloud is the key to unlocking 5G’s potential

By Manish Singh, vice-president and key account manager, Google, Hyperscalers Global Customer Unit At the recent Canadian Telecom Summit, industry leaders gathered to discuss the latest advancements in the industry. This event comes at a pivotal moment for the telecommunications sector, especially in the context of 5G's evolving landscape. The panel "Technology Transformation Enablers – Private Network, Cloud, Edge", which Ericsson was represented at, highlighted key factors that will shape the future of telecom, including the integration of private networks, the role of cloud computing, and the significance of edge technology in enhancing network capabilities. These discussions are particularly relevant as they intersect with the broader question: Is hyperscale cloud the key to unlocking 5G’s potential? As the 5G rollout transitions into true standalone (5G SA) networks, meaning networks are deployed on 5G-specific radio equipment rather than legacy/4G/LTE radios, we will start to see the true potential of the latest generation of cellular technology. It comes at a critical time for the industry – a time when communication service providers (CSPs) are looking for higher levels of service agility and increased capacity to meet the demands of consumers and enterprise customers. The true potential of 5G is being realized through cloud infrastructure, which is an easily scalable and readily available software-controlled platform that has the building blocks to meet the high capacity and agility needs of 5G networks. The telecommunications industry is adopting cloud technology at increasing rates, with cloud-native 5G core networks being a staple to unlocking advanced 5G capabilities. However, the full power and capability of 5G will only be realized when telco equipment providers, CSPs, and hyperscalers collaborate in the cloud to enable increased capacity and service customers. This is particularly important at the enterprise level, where demand is high. Achieving this requires attention to key considerations such as security, interoperability, and governance. To understand the importance of cloud-native telco functions, it’s essential to consider the historical context. While communication service providers (CSPs) recognize the value of cloud technology, it’s still a relatively new area for the industry. The previous virtualization cycle, which introduced Virtual Network Functions (VNFs), failed to deliver the expected benefits of cloud infrastructure as CSPs under-estimated the complexity of migrating core networks to the cloud. The introduction of 5G standalone services marks an inflection point for CSPs, as the industry seeks to revamp cloud-native operations. However, achieving this requires addressing several key questions: What will it take to get it right? What makes standalone 5G a perfect match for a cloud-first approach? 5G is the ultimate distributed system, with thousands of base stations supported by a Service Based Architecture (SBA) where network functions provide services to other authorized services. This disaggregated, distributed architecture is where a cloud-native approach can thrive. For CSP’s, the true value in 5G is about service enablement, and 5G capabilities like network slicing that unlock those services come with a standalone cloud native core. Consequently, the true value of cloud for 5G is less about the technology itself, but about the operational aspects of cloud, the ability to introduce features faster. In particular, two key things: The ability to roll out network function software upgrades without downtime and need for long maintenance windows. This will allow for rapid feature introduction, rivaling web-scale companies. Elastic capacity management, with the ability to spin up and turn down capacity on demand, rather than “bolting down” infrastructure to peak demand. The telco virtualization journey up to this point has been marked by two broad alternatives for cloud infrastructure: A “DIY” CaaS solution from a cloud infrastructure vendor, coupled with hardware from different vendors. In this scenario, cloud-native networks are assembled and managed by the CSPs, so it provides the most control. However, it also requires substantial investment in operational, systems integration and cloud expertise. The second is an integrated cloud infrastructure platform from network vendors such as Ericsson, providing consistent and verified deployments. This can provide more rapid time to market and faster verification cycles as the network vendor provides the cloud platform... On the other hand, hyperscalers (HCP) know cloud. The HCP public cloud has been instrumental in enabling the explosive growth of a number of software platform companies, transforming companies that didn’t exist a few years ago into digital giants that touch every aspect of our lives. They’ve done this through rapidly scaling infrastructure needs on demand, allowing these companies to introduce new features at a rapid clip and introducing automation in every aspect of operations. During the previous virtualization journey, telcos had the cloud software stacks but not the operational structure. Hyperscalers bring not only operating software but a rich set of developer tool kits, putting the power of thousands of individual software developers to work on their platform. The potential of cloud-native networks to add value for CSPs in the 5G deployments is clear, and hyperscalers have the experience and the tools to operate large clouds. The biggest value in merging these two elements is in the operational realm . Namely, the ability to automate, deliver in-network service upgrades, continuously integrate and deliver new features. Compare this to the traditional method of rolling out a new feature in telco networks, where CSPs needed to find a maintenance window on an off-peak time, shift capacity, run tests for quality control, then restore full functionality. An example use case: A CSP is growing capacity, looking to add several million new subscribers, but is out of private data center capacity. So, the company goes into an elastic hyperscale cloud and grows there while capping private capacity. Other examples could be redundancy for emergencies – with more elastic capacity, CSPs can build up resources and shift them to where it’s needed, rather than a more regional approach that can essentially have capacity sitting dormant just waiting for something to go wrong. CSPs must consider several factors when engaging with hyperscalers to run their clouds. Using hyperscale cloud for cloud compute, storage, and over-the-top services can result in significant operating capital expenditure on an external vendor. CSPs must also manage the investment community’s perception of a shift from CAPEX to OPEX and its impact on the CSP’s competitive advantage. Additionally, there is a risk of “locking in” to this approach - once all operations are rolled out in the cloud, it becomes challenging to switch to another option. The entry of hyperscale cloud providers (HCP) adds to the bewildering array of choices that communication service providers (CSPs) face regarding cloud infrastructure. Getting the choices, pace of changes, and mix right will be critical to the success of 5G deployments. While there are clear benefits to hyperscale cloud for telco operators/CSPs, we believe the industry is likely to be in a hybrid situation for the foreseeable future. Some CSPs will jump in with the hyperscalers full bore, while others will stick to running their own DIY options or rely on a mix of network vendor-provided platforms. Therefore, key to a successful transition will be integrating some of these new services into the existing infrastructure and managing it in a phased manner with clear milestones and strong governance over a 3 to 5-year period. In this transition period, CSPs need to carefully weigh the overall total cost of ownership (TCO) associated with various cloud infrastructure options, take a realistic view of their organization’s maturity to undertake such a transformation, and continuously balance it against their company’s priorities. Along the journey, they need to ask themselves: Do they have the operational skillset to run their own cloud infrastructure? Do they have the facilities and transport footprint needed to optimize HCP cloud infra spend? Do they know how to manage OPEX spend in a consumption-based HCP model? The best way forward is for each industry player to lean into their strength. Let CSPs operate the network, equipment providers build capable infrastructure to manage CSP-provided SLAs, and hyperscalers scale operations seamlessly. Each CSP will need to find the exact situation that works for them, but HCP cloud represents an incredible avenue for getting the most out of 5G. Manish Singh is the VP of Strategic Alliance and the Key Account Manager for Google at Ericsson. Singh has been in various leadership roles (global, regional, national) for 20+ years, building new business lines (consulting services, software, emerging technology) to enable operators across Canada, the US, Argentina, Mexico, Singapore, Hong Kong and India. THE WIRE REPORT ACCEPTS SUBMISSIONS BY OUTSIDE CONTRIBUTORS WHO ARE KNOWLEDGEABLE ON THE SUBJECT MATTER DISCUSSED. SUBMISSIONS CAN BE SENT TO JCOCULLO@THEWIREREPORT.CA.

OPINION: Hyperscale cloud is the key to unlocking 5G’s potential

Opinion | November 17, 2023

By Manish Singh, vice-president and key account manager, Google, Hyperscalers Global Customer Unit

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OPINION: Hyperscale cloud is the key to unlocking 5G’s potential

Opinion | November 17, 2023

By Manish Singh, vice-president and key account manager, Google, Hyperscalers Global Customer Unit

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