Telecom companies are increasing their cloud investments, even though they’ve only used 48% of what they’ve committed to, according to Infosys. The “Cloud Radar – Telecom Industry Report,” based on feedback from over 400 telecom insiders, shows that telcos are spending more in hopes of improving 5G networks and scalability.
Yet, many telcos struggle to fully utilize their cloud services. Infosys points to complex migration from legacy systems, which often rely on custom infrastructure, as a major hurdle.
The situation is further complicated by cloud providers offering services like IoT platforms and edge computing, which compete with telecoms’ own offerings.
Security also remains a key concern. Adopting cloud-based 5G networks exposes telcos to more risks, especially through software-as-a-service apps and IoT devices. Many are vulnerable to botnet attacks and human errors.
Additionally, 45% of respondents admitted that department heads can deploy new cloud infrastructure, raising security risks.
Another issue is that 44% of cloud decisions are made in isolation, either by IT or business leaders. Infosys suggests that a more collaborative approach could boost operational efficiency and cost savings.
Despite these challenges, most telcos view cloud migration as a success. Over 75% report benefits such as lower costs and better performance.
However, many managers remain uncertain about optimizing cloud-related expenses, showing a need for better cost management. As telcos continue investing in cloud infrastructure, addressing these hurdles will be key to fully leveraging their cloud strategies.
