Cloud computing has been one of the biggest enablers of digital transformation, specifically for the enterprise. This technology offers on-demand self-service, scalability, broad network access as well as enhanced security, which are a few of the reasons why businesses are making this migration. 5G is set to build on these benefits and add even more value with enhanced speed and bandwidth, low latency, and increased security. 5G adoption will also affect cloud offerings and services by challenging Telcos to adapt their business models and network infrastructures to meet the changing needs of enterprise customers. We examine this in more detail below.
The value of cloud computing and the impact of 5G
The value of cloud computing lies in the benefits this technology has on the productivity and efficiency of a business. Cloud computing allows for big data analytics which provides companies with access to real-time data analytics and insights that are critical for making informed business decisions related to services and offerings. Big data analytics also enables the identification of issues and problems as well as growth opportunities. Cloud computing benefits businesses by enhancing and streamlining operations and processes, which positively impacts performance and profitability. This technology safeguards data in the case of disaster, damage or human error by ensuring that your data is backed up in the cloud and also enhances workforce mobility regardless of where they are in the world.
Each of these elements positively impacts how business functions and operates. But how will the migration to 5G affect this? In many ways, 5G is set to improve cloud computing as it offers:
- Increased accessibility – 5G will increase accessibility by increasing the availability of cloud computing services to rural and outlining areas without access to high-speed internet. This will bridge the connectivity gap, eliminate bandwidth deserts, and provide more opportunities for businesses to reach potential consumers in these areas.
- Enhanced safety and security of data – many businesses have had concerns over the security of cloud computing. 5G aims to address these concerns with improved safety and security features. 5G is designed with new authentication capabilities, enhanced subscriber identity protection, and additional security mechanisms.
- IoT connectivity – with increased transfer speeds, low latency and the enhanced reliability of 5G, IoT systems and devices will have easier access to the cloud. 5G allows for more IoT devices to be connected to the network at any given time, which will provide opportunities to automate and digitise business processes and operations using these devices.
- Real-time data monitoring – cloud computing and enterprise are reliant on access to big data and analytics. 5G improves the speed at which data can be accessed as well as the reliability of the network. This enhances efficiency and allows for the fast identification of issues, problems, or opportunities. In terms of smart cities, acting on real-time data will have the ability to reduce traffic congestion, stay on top of water distribution needs, enhance security, and even decrease pollution.
- Workforce mobility – the reliability and high-speed capabilities of 5G allow for enhanced workforce mobility. Employees will be able to instantly access cloud computing and IoT applications, share data, and gain access faster using this network which will facilitate effective remote working and increased productivity.
What impact will 5G and Cloud computing have on Telcos?
5G offers many ways to improve cloud computing which are all beneficial to businesses. Cloud applications and data will give enterprises and Telcos the ability to develop and apply new insights to their business models. There are, however, challenges that need to be navigated before this is possible. The main challenge when bridging 5G and cloud computing revolves around network architecture and infrastructure.
There is a need to build and invest in new cloud environments, infrastructure, and technology to meet the performance requirements of 5G. To address this challenge, Telcos could look towards partnerships and collaborations with cloud service providers, which would be a completely new business model and structure. These partnerships will allow for the merging of infrastructure, the creation of new value-added services as well as enhance the affordability of 5G. This will not only increase business profitability but create new revenue streams that answer to the changing needs of enterprise customers and consumers.
Telcos will need to look beyond connectivity and towards providing end to end solutions to stay relevant in the 5G era. This will mean looking at new business models, partnerships, utilising the potential of IoT, and providing solutions that talk to the changing needs of customers.
The move towards 5G brings with it exciting opportunities to expand on the capabilities of cloud computing, especially where an enterprise is concerned. Not only will 5G mean faster speed and low latency, but it provides an opportunity to improve how businesses are operating. 5G will enhance cloud computing by providing increased data security, accessibility, and connectivity as well as faster and reliable connections needed for remote working.
It is important to note that the migration to 5G is going to impact Telcos and the use of cloud technologies. Telcos are going to need to adapt and change their business models and offerings to add more value and to keep up with the changing needs of enterprise clients. They will also need to navigate the challenges associated with the network architecture and infrastructure required for 5G migration. Although 5G is still not fully accessible in many countries, Telcos need to identify ways to fully harness and maximise the potential of this fifth-generation wireless network in order to stay ahead of competitors and to stay relevant to customers.
As the Global Head of Marketing and Business Development with 20 years of experience, Agnieszka’s expertise lies in the practical implementation of digital and traditional marketing strategies for B2C and B2B companies. Through her long-term, client-focused, strategic approach, and branding experience, she continues to develop innovative marketing plans that yield significant results.
Now working in the SaaS industry, she oversees a multitude of solutions within the telecommunications industry including Customer Experience & Self-service, VAS, NextGen, IoT, FinTech, and Advanced Analytics.