By Elena Herman, Cloud Solution Architect
To address these challenges, the telecommunication industry has introduced innovative technologies in its platforms and software, specifically designed to make using devices easier. HPE has been actively working to tackle these challenges by bringing together HPE hardware, software, and services with an edge-to-cloud adoption framework.
5G and cloud technologies
5G networks provide ultra-fast, low-latency connectivity, while cloud computing offers scalable, flexible computing resources. Together, they enable a wide range of applications and services, including edge computing, the Internet of Things (IoT), augmented reality (AR), virtual reality (VR), and autonomous vehicles, among others.
5G cloud services are expected to drive the expansion of edge computing. With 5G's low latency and high bandwidth, computing and storage resources can be distributed closer to the edge of the network, enabling real-time processing and faster response times. This is particularly interesting for applications that require immediate data analysis and decision-making, such as autonomous vehicles or industrial IoT.
The combination of 5G and cloud technology opens new opportunities for industry-specific solutions and use cases. 5G cloud capabilities can help various sectors—such as healthcare, manufacturing, transportation, and smart cities—improve operational efficiency, increase productivity, and drive innovation. For example, in healthcare, remote patient monitoring and telemedicine services can benefit from the high-speed, low-latency connectivity and cloud-based data analytics.
Monetizing 5G cloud services requires shifting from traditional business models and exploring new revenue streams. This can be done by investing in cloud-based services, edge computing, and partnerships with other industries. This transformation can be complex and may require strategic planning and investments.
With the 5G evolution, cloud service providers (CSP) are focusing on effectively gaining a return on their investments. Deploying 5G networks and building the necessary cloud infrastructure requires substantial capital expenditure. Their operating business models must change, so the way services are charged is changing.
Monetizing IoT and 5G services poses a set of challenges that slow the cloud adoption process:
- Network transformation: One of the key challenges that operators face is the complex network transformation required for a 5G deployment. Implementing virtualized infrastructure, network slicing, and edge computing requires significant investment, expertise, and coordination between multiple stakeholders.
- Scalability and capacity: Adding to the network transformation, operators need to ensure that the infrastructure can handle the increased load of data and traffic, deploy additional resources when needed, and effectively manage network congestion.
- Fear of vendor lock-in: Cloud providers are concerned with losing the ability to switch providers or migrate to alternative solutions. This can lead to limitations in innovation, an inability to change conditions, and—sometimes—increased costs.
- Lack of integration: The 5G ecosystem involves multiple stakeholders, including telecom operators, cloud service providers, device manufacturers, application developers, and regulatory bodies. The lack of integration and coordination among these stakeholders can hinder effective monetization strategies. Each player may have different priorities, business models, and technical requirements, making it challenging to create unified solutions that can seamlessly leverage the capabilities of 5G.
- OSS/BSS transformation: The challenge lies in developing scalable and flexible systems that can support real-time service assurance, network management, complex charging and billing models, integration with third-party systems, data management and analytics, and enable agility for rapid time-to-market.
- Security and compliance concerns: The new evolving regulatory requirements for 5G include user data privacy and strict data residency regulations. Ensuring compliance while delivering functional and secure services can pose operational and legal challenges. This is a big concern as telcos usually prefer on-premise or private cloud deployments.
How to solve these challenges and the path to 5G monetization
Telcos are looking for a more agile and open approach when it comes to the 5G modernization and transformation journey. This will involve changing or upgrading the legacy systems, adopting common standards and protocols in a partner ecosystem approach.
One important step is the migration to the cloud infrastructure. This journey is complex as operators continue to invest in cloud-native applications, leaving monolithic structures and proprietary APIs behind.
HPE plays a significant role in helping operators enable 5G monetization. HPE offers a variety of solutions and services that help operators leverage the revenue potential of 5G networks. We will look at some examples of HPE’s contributions and impact on various aspects of the revenue generation.
As a first step, HPE offers virtualization solutions that replace traditional hardware-based appliances and helps the shift towards software defined networks. This shift allows operators to dynamically allocate resources, scale services based on demand and introduce new offerings quickly. By embracing virtualization, operators can enhance operational efficiency, scale services based on demand and seize revenue opportunities through faster service deployment.
We embrace cloud-native architectures and technologies to enable the transformation. This includes containerization, microservices, orchestration platforms (e.g., Kubernetes), and infrastructure-as-code principles. Design the network architecture to be modular, scalable, and highly automated.
Instead of relying on a single cloud provider, we leverage a hybrid or multi-cloud strategy. This approach allows you to distribute workloads across multiple cloud providers, reducing the dependency on a single vendor. It provides the flexibility to choose the most suitable cloud environment for each specific workload or application.
In addition, we leverage cloud-native architectures and open-source technologies that promote portability and flexibility across multiple cloud environments. Containers, microservices, and Kubernetes, for example, provide a standardized approach to application deployment and management, allowing for easier migration between different cloud platforms.
The OSS/BSS transformation can be addressed with a multicloud approach together with an AIOps integration. This transformative solution empowers service providers to modernize operations with added AI capabilities, such as machine learning and predictive analytics. As a result, the solution enables intelligent automation, proactive monitoring, and self-healing capabilities, optimizing network performance, improving service quality, and enhancing operational efficiency.
A possible solution stack can leverage service mesh to provide a centralized and scalable approach to address security and compliance requirements by implementing fine-grained access controls, encryption, and monitoring across the distributed microservices architecture. Additional steps include implementing strong access controls (RBAC control), encryption, and identity management, leveraging cloud native container security technologies (such as image scanning and runtime protection), ensuring secure communication between microservices, and continuously monitoring and auditing the environment for vulnerabilities and threats.
How HPE can help
In order to unlock the potential of 5G monetization, HPE strives to address the challenges faced by operators by providing scalable, flexible and cost-efficient solutions.
HPE’s dedication to the cloud-native transformation means the company is bringing together multiple cloud-based building blocks together, from within the company and in close collaboration with its multiple trusted partners into one complex solution, tailored to customer needs.
HPE Advisory and Professional services can help your team choose and design the right cloud management infrastructure using a smart combination of open-source technologies, automation, monitoring and business-related services.
As soon as the right type of HPE infrastructure is in place, we will help bridge the skill gap for managing complex cloud systems, providing flexibility and skill transferability, reduction in hardware capex, offering a secure, scalable and simple architecture, based on open-source standards.
We designed HPE Telco Blueprints as the most optimal solution for the business needs. HPE covers cases from core to edge, including the infrastructure and container platform, supporting both third-party and HPE solutions for the best workload onboarding solution. We help break silos by employing a cloud-native approach to modernize the customer applications.
Together with our collaborative and extensive partner ecosystem, we can accelerate innovation and better support our customer’s needs. We act as a single point of contact for the entire cloud infrastructure, so you can focus on the business growth.
To help with a complex multi-cloud environment and to offer a single centralised management point we recommend the right cloud management platform (CMP). This will allow for centralized, self-service cloud resource management, complete with built-in integrations and automation tools (for metering, billing, smart marketing, ticketing) to help ensure smooth business and operations delivery, and therefore increase the quality of service.
To maximize the cloud's business value and ensure financial collaboration between the business and engineering teams, we use a FinOps tool. This tool allows users to see the costs associated with the cloud platform, how they spend their shares and why, take the right optimization actions, and scale their operations efforts based on goals.
As part of our enablement activities, we offer remote training and product workshops, including technical, product, marketing, and sales enablement.
HPE understands the telco world is evolving rapidly and the need to monetize 5G and future releases. We can help the current infrastructure evolve based on business needs.
HPE provides the most comprehensive professional services and a comprehensible solution designed with the operator's needs in mind. HPE developed a robust telco cloud portfolio, providing service providers with a comprehensive suite of cloud-native infrastructure and software solutions.
We do not stop here. HPE understood that automation and intelligence were critical to delivering optimized services and operational efficiency. Leveraging cutting-edge technologies like AI and machine learning, HPE developed intelligent automation capabilities that automated network operations, optimized resource allocation, and ensured seamless service delivery.
As telco networks evolve and new technologies emerge, HPE constantly pushes the boundaries of what is possible and continues to innovate. Our commitment to empowering service providers and transforming the 5G landscape ensures that the story has many exciting chapters yet to be written.
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Elena has 10 years of experience in various international roles in the telecom industry. She is currently working as a cloud solution architect and part of the Center of Excellence at HPE, where she helps customers modernize and implement cloud-based solutions according to the latest market needs. Current interests include architecture design with Suse Rancher, Red Hat OpenShift, and hybrid and multicloud projects, including HPE Greenlake.
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