Month: March 2025

Does AI change the business case for cloud networking?

Posted on by Alan Weissberger

For several years now, the big cloud service providers – Amazon Web Services (AWS), Microsoft Azure, and Google Cloud – have tried to get wireless network operators to run their 5G SA core network, edge computing and various distributed applications on their cloud platforms. For example, Amazon’s AWS public cloud, Microsoft’s Azure for Operators, and Google’s Anthos for Telecom were intended to get network operators to run their core network functions into a hyperscaler cloud. 

AWS had early success with Dish Network’s 5G SA core network which has all its functions running in Amazon’s cloud with fully automated network deployment and operations. 

Conversely,  AT&T has yet to commercially deploy its 5G SA Core network on the Microsoft Azure public cloud. Also, users on AT&T’s network have experienced difficulties accessing Microsoft 365 and Azure services.  Those incidents were often traced to changes within the network’s managed environment. As a result, Microsoft has drastically reduced its early telecom ambitions.

Several pundits now say that AI will significantly strengthen the business case for cloud networking by enabling more efficient resource management, advanced predictive analytics, improved security, and automation, ultimately leading to cost savings, better performance, and faster innovation for businesses utilizing cloud infrastructure.

Markets & Markets forecasts the global cloud AI market (which includes cloud AI networking) will grow at a CAGR of 32.4% from 2024 to 2029.

AI is said to enhance cloud networking in these ways:
  • Optimized resource allocation:

    AI algorithms can analyze real-time data to dynamically adjust cloud resources like compute power and storage based on demand, minimizing unnecessary costs.

  • Predictive maintenance:

    By analyzing network patterns, AI can identify potential issues before they occur, allowing for proactive maintenance and preventing downtime.

  • Enhanced security:

    AI can detect and respond to cyber threats in real-time through anomaly detection and behavioral analysis, improving overall network security.

  • Intelligent routing:

    AI can optimize network traffic flow by dynamically routing data packets to the most efficient paths, improving network performance.

  • Automated network management:
    AI can automate routine network management tasks, freeing up IT staff to focus on more strategic initiatives.
The pitch is that AI will enable businesses to leverage the full potential of cloud networking by providing a more intelligent, adaptable, and cost-effective solution.  Well, that remains to be seen.  Google’s new global industry lead for telecom, Angelo Libertucci, told Light Reading:

“Now enter AI,” he continued. “With AI … I really have a power to do some amazing things, like enrich customer experiences, automate my network, feed the network data into my customer experience virtual agents. There’s a lot I can do with AI. It changes the business case that we’ve been running.”

“Before AI, the business case was maybe based on certain criteria. With AI, it changes the criteria. And it helps accelerate that move [to the cloud and to the edge],” he explained. “So, I think that work is ongoing, and with AI it’ll actually be accelerated. But we still have work to do with both the carriers and, especially, the network equipment manufacturers.”
Google Cloud last week announced several new AI-focused agreements with companies such as Amdocs, Bell Canada, Deutsche Telekom, Telus and Vodafone Italy.
As reported here last week, Deutsche Telekom is using Google Cloud’s Gemini 2.0 in Vertex AI to develop a network AI agent called RAN Guardian.  That AI agent can “analyze network behavior, detect performance issues, and implement corrective actions to improve network reliability and customer experience,” according to the companies.
And, of course, there’s all the buzz over AI RAN and we plan to cover expected MWC 2025 announcements in that space next week.
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