Virtualized network functions: The cloudification of telecoms leading to a new class of applications

By Ajit Jaokar | March 21, 2021

The Cloudification of the Telecoms market:

Last week, Nokia announced 10,000 jobs lost worldwide. Telecoms is a cyclical business with the G cycles (roughly spanning seven years) ex 3G, 4G etc – driving the ups and downs in employment. However, there is more at stake here because the Telecoms industry is fundamentally changing. Nokia also said that it planned to invest in cloud and digital infrastructure and announced three partnerships with the leading Cloud providers i.e. AWS, Azure and GCP. Broadly, these partnerships are designed to use Nokia’s RAN (Radio Access Networks) and Edge technologies with the Cloud for 5G networks. With AWS, Nokia will work with AWS outposts. With Azure, they will integrate with Azure Private Edge Zone. With GCP, Nokia will work with Google Cloud Anthos These partnerships demonstrate a wider change in the value chain because Nokia is a traditional Telecoms infrastructure vendor and its primary customers/ partners are the Telecoms network operators.

We can see it as a ‘Cloudification’ of telecoms networks – a trend which has implications for next generation applications development…

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