The report found that majority of 5G standalone networks will be in the telco cloud, limiting the short-term opportunity for the public cloud to host 5G workloads.
"At first glance, this may appear to be a very conservative forecast. Especially in view of Hyperscale Cloud Providers' (HCPs) plethora of press releases that suggest there is greater traction in the marketplace than previously identified,” declared Dell’Oro Group research director Dave Bolan.
“The new report discovers that the opportunity for HCPs to penetrate the telco cloud market is very limited in the short-term, with the momentum already established by mobile network operators (MNOs) committing to the telco cloud," said Bolan.
"Most of the HCP press releases are about HCPs adding network solutions for enterprises that desire 5G device connectivity via a Hybrid Cloud at the edge location. Our projections are for public cloud revenues, not hybrid clouds at the edge of the networks,” clarified Bolan.
Bolan said they found 27 5G standalone networks have been deployed and only one MNO is running its 5G workloads in the public cloud.
“The balance chose to run their own telco cloud. Further findings show that another 130 MNOs have already cut contracts with 5G core vendors to deploy their own telco clouds, and two MNOs have committed to run their networks in the public cloud.”
"For the short-term, HCPs are focusing on the enterprise opportunities extending their services to the network edge, either themselves or partnering with an MNO integrating their services inside the telco cloud.”
“Longer term there is much more opportunity for the HCPs to host 5G workloads in their public clouds with 75 5G non-standalone (5G NSA) MNOs and another 600 LTE MNOs still to announce their 5G SA plans. The forecast exits 2026 with a higher year-over-year percentage growth rate for 5G workloads moving to the public cloud than for the growth rate of the telco cloud," Bolan concluded.
This first appeared in the subscription newsletter CommsWire on 4 August 2022.