Telecommunications: what is the next step in digital transformation?

Sandra Guazzotti, multi-country head of Google Cloud, points out that cloud technology is allied with digitization and that companies should follow this path.

Sandra Guazzotti, Multi-Country Manager for Google Cloud

Digital transformation affects businesses of all sizes and in all industries, and telecommunications companies are no exception. They are going through an evolutionary process in which they have ceased to be providers of connectivity and have become providers of technology platforms.

During my participation in the recent Mobile World Congress 2022 edition in Barcelona, ​​I could see that one of the new topics of discussion at this meeting was fintechs.

It has a good reason. Many operators have entered the world of financial services over the past five to ten years, building fintech companies with significant revenue growth. This trend is accelerating around the world as technology continues to lower barriers and enable new disruption and innovation.

Cloud technologies are key allies of digitization and their adoption is already a trend among telecom operators. The gap between edge devices and central management in the network infrastructure is shrinking.

A world of communication services is being created based on a powerful and flexible cloud, enabling an ecosystem of innovation partners like never before. This will allow communication service providers to have more options to evolve their networks in a way that is more flexible and open to the latest innovations.

A study called 5G Edge Computing ordered by Google Cloud from Omdia, indicates that seven out of 10 companies plan to invest in Edge in the next 12 months and eight out of 10 consider 5G essential for edge benefits. This shows a great opportunity for telecom providers to modernize their infrastructure by optimizing networks and providing better user experiences.

In this scenario, it will be critical for telcos to have cloud solutions that allow them to bring infrastructure and services closer to the network edges, where data is generated and consumed.

In our case, we have Google Cloud Distributed Edge which leverages our 14+ global locations and is ideal for local data processing, low latency workloads, and deploying private 5G/LTE solutions across various industries.

According to Gartner, by 2023, 50% of network infrastructure software is expected to be based on cloud-native technologies, up from 15% in 2018. From my perspective, Edge Computing combined with 5G will have a cross-cutting impact on industries. In Google Cloud, we’re reinforcing our focus on taking carriers to the next level of digital transformation.

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