New technologies and business models are emerging at an unprecedented rate. General trends such as artificial intelligence (AI), cloud computing, Industrial Internet of Things (IIoT), and 5G have all gained traction in recent years and will continue to transform telecommunications in the years to come. In addition to these trends, here are predictions for the top 5 telecom trends in 2023.
Containerization is a major telecom trend for 2023. The technology allows packaging an application’s code and its dependencies in isolation, facilitating optimal performance on any infrastructure, quick deployment, and faster time-to-market. Containerization is gaining popularity due to its portability, flexibility, scalability, security, modularity, and lightweight footprint. These significant features enable companies to process deployment-related tasks quickly and efficiently.
With the increasing complexity of networks and the software development challenges that go along with it, containerized systems make the life of developers easier and help them overcome operational and technical difficulties. Containerization increases the agility and accessibility of the application due to its leaner, virtualized, and service-oriented design, having no hardware or other system dependencies. When appropriately applied, containerization improves DevOps efficiency, streamlines work processes, and minimizes infrastructural conflicts. Containerization technology plays a significant role in implementing next-gen applications or networks. For example, it plays a prominent role in creating network slices, allowing technology service providers to create virtual replicas of networks with varied business requirements. To be more specific, when developers require a network that can handle autonomous driving and smart meters with varying delays and bandwidths, they can build those slices with the help of the containerized system.
And not to forget about the cost and security benefits of containerization, the containers-based networks are built with significantly lower costs and risks than traditionally built networks. Containerized applications can run easily in any environment thanks to its cloud-native infrastructure, significantly reducing maintenance and development costs.
Telecom has always been vulnerable to cyber-attacks and data breaches, and the IoT boom has further elevated the need for cybersecurity and cyber resilience. The more devices we connect to our network, the more opportunities emerge for attackers to access our data.
5G will introduce different security threats, making the industry vulnerable to cyberattacks. A large amount of sensitive data spread across complex, confidential, and private networks make it essential for telecom operators to invest in implementing stringent cybersecurity measures to strengthen security surrounding connected devices and the cloud systems and networks that connect them.
Gartner predicts that by 2023, there will be 43 billion IoT-connected devices worldwide. IoT devices, from smartwatches or human-wearable biometrics to monitoring systems, robots, alarm systems, sensors, IT devices, and industrial machines, are important to remember for those in charge of cybersecurity. The ability to remotely access base stations and data centers makes IoT security crucial as more telecoms embrace the industry and deploy these devices in their networks.
Private 5G has been considered the top telecom trend in recent years and will become mainstream next year. As consumers eagerly await the rollout of 5G, numerous telecommunications companies have already made significant investments in the necessary infrastructure with 5G SA networks live in South Korea, Japan, and many more countries.
With 5G ecosystems, users will take advantage of increased speed, reliability, and consistency. For businesses, with its ultra-low latency, Due to its ultra-low latency capability, Private 5G will enable businesses with several high-value use cases, including 3D robot control, digital twins, medical remote control, and more. These next-gen use cases were practically unachievable with legacy network technologies, thus opening a high-revenue generating market for telcos.
5G networks are expanding, and more importantly, many devices in the market now support 5G. And with the evolution of industry 4.0, Private 5G will help enterprises connect hundreds of IoT/IIoT devices, boosting operational efficiency and productivity and enabling the development of mission-critical applications in almost all industries. Alepo is also working with its partners on multiple private 5G projects for hospitals, universities, semiconductor factories, and more.
Cloud computing in emerging markets due to hyperscalers
In the past three years, cloud computing has grown in popularity as more companies have turned to digital service delivery to respond to the global pandemic. By 2026, the global hyperscale cloud market is projected to reach US$693.49 billion, according to Research and Markets. The global hyperscale cloud market is expected to grow by 2026. This potentially industry-changing technology is something that telcos should keep an eye on.
One of the most significant factors influencing the hyperscale cloud market is the growing adoption of hyperscalers among SMEs in developing markets. Due to physical infrastructure and constant technological evolution, SMEs are always looking for ways to reduce IT costs and overcome the challenges related to data security, digitization, and high CAPEX. An increase in the demand for cloud computing by SMEs across industries has led to growth in the hyperscale cloud market, with data centers opening around the world to get closer to the end-user, such as South Africa, Chile, Mexico, and Indonesia.
Furthermore, the market has been growing over the past few years, due to factors such as increasing penetration of IoT devices, increasing adoption of 5G, SaaS, edge computing, video streaming apps, AI, and big data analytics, growing internet traffic, and an increase in the number of hyperscalers from AWS, Microsoft, Google, and other companies. Additional services that these hyperscale data centers offer to enterprises include massive server storage, cloud computing platforms, data processing, IT networking, software customizations, and much more.
As more businesses discover the operational and low capital-intensive benefits of hyperscale infrastructure, the move to cloud computing will surely see a boom in 2023.
Edge orchestration or edge computing hosts and authorizes apps to run at a network’s edge. It’s a distributed computing architecture in which processing and data storage moves closer to the data source. It brings benefits like lower latency, accessibility, and reliability to use cases like AR/VR and IIoT.
Edge cloud computing technology will rapidly spread thanks to 5G as communication service providers will deploy 5G networks with hundreds of centers and distributed cloud edge sites. Edge cloud computing environments will grow, using network-as-code, multi-cloud, and open APIs with purpose-driven closed-loop orchestration. These facades incorporate a converged framework at the network edge that can serve various user needs, while maintaining high agility and low operational expenses.
With so many benefits to offer, edge orchestration remains one of the top telecom trends of 2023. Edge ecosystems will emerge as an essential pillar of CSPs’ digital transformation journey, allowing them to achieve market significance beyond connectivity.
2023 is shaping up to be one of the most transformative years for the telecom industry. These five trends will bring technological revolution, digital transformation, better data security, improved Quality of Service (QoS), and new revenue opportunities for telcos. And the adoption of these trends is a must to remain competitive and overcome future challenges.
Associate Director - Marketing