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Outscaling the Hyperscalers - Telco Cloud vs. Hyperscaler Cloud Providers - Compete and Complement

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Report Summary:

Are the Telco Cloud and the Hyperscale Cloud Providers (HCPs) complementary or competitors?

Of course the answer is ‘Yes’.

In this Presentation we outline 7 ways that the Telco Cloud services based on 5G Standalone (SA) can outflank the Hyperscaler Cloud Providers (HCPs).

And we summarize how Telco Cloud providers can win in each of Eight broad horizontal Segments: Edge Services, Cloud Data Center, Network Slicing (Generic Corporate VPNs etc.), Managed Private Network (MPN), Hybrid Public Private Networks (PNI-NPN), Fixed Wireless Access (FWA), 5G-LANs, and eCommerce /5G Marketplaces.

And how although HCPs are to some degree “trapped in their Walled gardens”, there are new software capabilities from Linux Foundation - Akraino, ApacheKafka and Ignite and Red Hat (IBM) - Openshift for 5G, as well as from Cloud Native Computing Foundation (CNCF) and ONF that now allow HCP based capabilities to start to match those of 5G SA Telco Cloud

We also summarize what Telco Cloud and HCPs can learn from each other.

To hear the full Presentation listen to the associated Video Recording.

Table of Contents

1. Telco Cloud Business and Hyperscaler Cloud Providers (HCPs)

  • ‘5G SA Changes Everything’ as Telcos go ‘Cloud Native’
  • Telco Cloud Business includes Corporate IT Cloud but IT Cloud does NOT include Distributed Networking of Telco Cloud
  • Seven Ways Telco Cloud Outflanks HCP Cloud:
  1. 5G SA, Telco Hierarchy is ‘Flat’ Network
  2. ‘5 Nines’ 99.999% inherent Reliability in Virtualized network and Cheaper than Data Center COTS Hardware
  3. E2E (End to End) State Aware Transaction Processing
  4. Real Time, Dynamic, Load Management across Network
  5. Telco Edge (‘Far Edge’) is Highly Distributed and two orders of magnitude larger than Cloud
  6. 5G Std. Control Plane & Management Tools support Multi-Domain, Multi-Vendor E2E Seamless services
  7. E2E Multi-Cloud Service Orchestration is key
  • What Telco Cloud and HCPs are Learning from each other


  • 2. Telco Cloud Business Opportunities that Compete with and Complement HCPs

  • Cloud ‘as a Service’ for B2B Services – Options range from On-Premise to IaaS, CaaS, PaaS, and SaaS
  • 5G Telco Cloud QoS & Virtualization that enable B2B Verticals to Map Efficiently to Eight Broad Horizontal Markets
  • How Telco Cloud can Win in each of Eight Broad Horizontal Segments


  • 3. Five Examples of how Telco Cloud Business can Outflank the Hyperscalers

    • Telco Cloud Captures Value:
      • Hospital Edge /MEC and Remote Access
      • China Unicom 5G LAN for Fully Connected Automobile Factory
      • Vodafone Business - Multi-Cloud
      • NTT Data MPN with Hosted Private 5G Core
      • Equinix Fabric for Global Multi-Cloud Interconnect
  • 4. High Level Roadmap: Compete AND Co-operate with HCPs to Achieve Telco Cloud Advantage

    5. Key Takeaways

  • 5G SA creates Cloud Native Telco Cloud that can Complement and Outflank the HCPs
  • For B2B market, Operators need to leverage advantages in the Eight Market Segments to optimize groups of verticals more efficiently
  • Telco Cloud Virtualization and Cross-Industry Segments could make B2B market more profitable for Telecoms operators.
  • HCPs are being trapped in their own ‘Walled Gardens’ with:
  • 25 year old Centralized Hierarchical Architecture
  • Relatively few Climate Controlled Data Centers
  • Home grown Proprietary Tools and Software
  • High Latency Services with ~150 – 200 ms Round Trip Time
  • HCPs need Telco Cloud to compensate for their deficiencies
  • But…CSPs need HCPs to put them back in the Enterprise and App. Developers’ Value Chain
  • And…..Industry Standards and Platforms are bringing Carrier Class performance to HCP Cloud

Warning - CSPs who are Hosting 5G Core and RAN in the Cloud with HCPs must be careful to avoid being trapped by Proprietary HCP environments


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