The telecom cloud market is forecasted to grow at a high rate owing to the growing demand for hybrid cloud in telecom sector
The Global Telecom Cloud Market is expected to grow at a CAGR of 19.1% and expected to reach 81.1 Bn by 2027
The global telecom cloud market is witnessing strong growth across the globe owing to the increasing adoption of hybrid cloud. Hybrid cloud provides a mixed computing, storage, and service environment consisting of internal infrastructure, private cloud services and public clouds such as Amazon Web Services (AWS) or Microsoft Azure through orchestration across different platforms. The technological companies are expeditiously shifting towards hybrid cloud from public and private cloud technologies. For instance, in July 2021, Movistar Empresas, a Spain based company announced a partnership agreement with the International Business Machines Corporation (IBM) ecosystem, to collaborate with IBM’s cloud for telecommunications. The collaboration will benefit Movistar to get advancements of hybrid cloud architecture and develop next generation business solutions in the region of Colombia.
The shift from private and public cloud to hybrid cloud is attributed to the primary and important advantage of the hybrid cloud that is its agility. As the necessity to adjust and convert direction quickly is a key principle in digital business, businesses often need a combination of public cloud, private cloud, and on-premises resources to achieve the agility they need in order to achieve a competitive edge. Moreover, the cloud technology used in telecommunication sector also ensures the lessening of operational and administrational costs which is anticipated to further propel the global telecom cloud market growth in the forecast year.
The services segment, based on component is estimated to grow significantly throughout the forecast period. The services segment is further sub divided as professional services, colocation services, managed services, and network services. The telecom companies are increasingly focusing on providing cloud services owing to their benefits such as reduced IT expense, automatic updates, scalability, and collaborations efficiency among others. For instance, in October 2021, Telecom Italia announced a partnership with Oracle Corporation to offer cloud services in Italy. The cloud services are majorly targeted at enterprises and public entities to implement multi-cloud-strategy.
Global Telecom Cloud Market by Region Outlook (Revenue, USD Billion, 2021-2027)
In terms of geography, the North America held the largest market share in the year 2020 and is expected to show similar growth trends during the forecast period for global telecom cloud market. This region is witnessing growth owing to the well-developed technological infrastructure which is best suitable for the telecom cloud sector. Global telecom cloud market vendors here are aimed to engulf newer technological advancements in the business. For instance, in March 2020, North American-based company; AT&T has worked with Google Cloud to help businesses leverage Google Cloud technology and capabilities at the edge, including 5G, using AT & T's network connectivity. AT&T and Google Cloud are also 5G edge computing solutions that combine key Google Cloud technologies with edge computing to help businesses solve real-world business problems in AT&T's network.
The Global Telecom Cloud Market Segmentation:
Company Profiles and Competitive Intelligence
The key players operating in the global telecom cloud market are: