Does AI change the business case for cloud networking?
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.
“AI is already a significant traffic driver, and AI traffic growth is accelerating,” wrote analyst Brian Washburn in a market research report for Omdia (owned by Informa). “As AI traffic adds to and substitutes conventional applications, conventional traffic year-over-year growth slows. Omdia forecasts that in 2026–30, global conventional (non-AI) traffic will be about 18% CAGR [compound annual growth rate].”
Omdia forecasts 2031 as “the crossover point where global AI network traffic exceeds conventional traffic.”
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 IEEE Techblog 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.
https://www.lightreading.com/cloud/google-cloud-doubles-down-on-mwc
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3 thoughts on “Does AI change the business case for cloud networking?”
Leave a Reply to RobertViary Cancel Reply
While AI might not change the business case for cloud networking, it could help US President Donald Trump see more clearly and act more humanely! Trump craves political glory, while Ukraine President Volodymyr Zelensky is fighting for something far more profound – his country’s survival as a viable, independent, democratic, sovereign state. Trump’s decision to open Ukraine talks with Russia in Saudi Arabia without Ukraine invited and now suspending military aid to Ukraine is like waiving a huge Russian flag!
Zelensky warned last week at the Munich Security Conference that he would “never accept deals made behind our backs without our involvement.” But if Trump walks away, Zelensky would have to decide whether to fight on without US arms and ammunition and to rely on Europe’s lesser punch. Zelensky understands that he can’t count on US support with Trump in the White House and said last week it was time to form a European army because, “the old days are over when America supported Europe just because it always had.”
Trump’s empathy with the invader (Russia), rather than the invaded party (Ukraine), is why Europe’s participation in peace talks is necessary to even the playing field. But Trump is already looking beyond Zelensky, who was the recipient of the telephone call that led to Trump’s first impeachment in his first term. He said last week that Ukraine needs elections “at some point” after a peace deal and archly noted that Zelensky’s poll numbers were “not great.” This is another Russian talking point that Trump has picked up — even though the idea that Putin, who sustains his long rule with sham elections, has any credibility in talking about elections is absurd.
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Another telco has joined the AI-RAN club. Nokia highlighted its AI-RAN advances with T-Mobile US and KDDI on the eve of the MWC25 show and now the Finnish vendor has added Indosat Ooredoo Hutchison (IOH) to that list. The Indonesian network operator has announced it is working with Nokia and Nvidia to deploy what it calls “a unified accelerated computing infrastructure for hosting both AI and RAN workloads.”
The three companies have agreed to develop, test and deploy an AI-RAN solution with an initial focus on managing AI inference workloads using Nvidia’s AI Aerial system and then, later on, to integrate radio access network (RAN) workloads on the same platform.
To support their efforts, IOH, Nokia and Nvidia will collaborate with leading Indonesian universities and research institutions to drive AI-RAN development.
“This collaboration will support academic programs to foster AI innovation in telecom applications, and provide hands-on opportunities for students and researchers to contribute to next-generation AI-powered networks. By engaging with academia, the companies aim to accelerate breakthroughs in AI-driven network optimization, spectral efficiency and energy consumption,” noted IOH in this announcement.
https://www.telecomtv.com/content/telcos-and-ai-channel/what-s-up-with-ioh-ai-ran-telef-nica-airspan-52501/
In 2023, Nokia abandoned its efforts to build cloud infrastructure platforms. “Quite frankly, we can’t keep up with the innovation that’s happening in the cloud, and our industry cannot,” Raghav Sahgal, the head of Nokia’s cloud and network services business, told Light Reading at this year’s show.
Ericsson continues to resist. But for how long?
https://www.lightreading.com/ai-machine-learning/mwc-visitor-numbers-are-up-again-but-the-industry-is-decaying