Turning 5G on its head: consume cloud resources as-a-service

As carriers around the world begin to roll out 5G, much of the attention is focused on the RAN, but it’s really the new 5G core technology that will unleash the potential of network slicing and new revenue streams from the network. If we think about 5G from the perspective of the core, we start to see how service providers can consume some cloud resources as OpEx rather than CapEx. You can imagine the scale, performance, security and economics of the cloud taking shape, with CSPs recouping network costs while network infrastructure services are consumed, and, recouping network infrastructure costs as applications services are provided. 

The core network in 5G follows a service-based architecture (SBA), applying IT network technologies to mobile services. This will empower operators to replicate the success of IT webscale models — already proven to be agile, cost-effective and customer-oriented. There will be opportunities to innovate and monetize new services (and all while realizing economies of scale).

Operators will leverage IT cloud-based technologies such as big data analytics, artificial intelligence (AI) and machine learning (ML) to better understand their customers, to anticipate customer needs and to personalize services with unprecedented speed and efficiency.

With the 5G core will also come agile processes that will improve automation and lead to efficiency gains such as:

•    Continuous delivery of software
•    Automated testing/continuous deployment
•    Canary releases
•    Blue/Green deployments
•    End-to-end service orchestration
•    Dynamic slice management

The evolution of these processes will ultimately lead to one-click procurement of networks, deployed as-a-service, for specific use cases and market segments.

While most of the ecosystem moves to a pay-as-you-go model, the initial cost burden of the network core buildout will shift from the telco to the cloud provider. And as future network services and features are likewise delivered by the 5G network as-a-service, telcos will have many new services and more flexibility in how to deliver and monetize them in emerging business models.

Go here to learn more about Oracle Communications’ take on 5G, and be sure to check out my other blogs.

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