What Is Telco Cloud?

Telco cloud is the adoption of software-defined networking (SDN) and network functions virtualization (NFV) for the telecommunications industry. Traditionally, telco network operators or communication service providers (CSPs) create, manage, and decommission network hardware in running their operations. Each of these tasks can be manually intensive. However, with virtual network functions, telcos can now define and manage network functions in software, for greater efficiency, resource optimization, and network resilience. Telco cloud uses SDN and NFV over the top of physical hardware, so that telcos can optimize operations and expand their service offerings.

Telco cloud is the combination of cloud native technologies with network function virtualization and software-defined networking. Initially, telco companies relied heavily on virtual machines to run large monolithic network workloads. With telco cloud, they can refactor large network functions into smaller microservices that run in containers. This allows orchestration tools to programmatically deploy, configure, and access modular networking services with an application programming interface (API). An API is a method that allows software to expose an interface to its internal functions to third-party systems.

Telco cloud technology provides a hybrid-cloud or multi-cloud environment that communication service providers use to host virtualized network services. Here are some benefits of telco cloud.

Operational efficiency

Telco cloud technology allows telco companies to deploy, manage, and scale network operations more efficiently on public or private clouds. Instead of operating monolithic, complex virtual machines, software vendors break them into smaller, manageable microservices. This allows telco teams to adopt agile development practices, such as DevSecOps and continuous testing, to improve service delivery and shorten time-to-market.

Service innovation

The telco cloud architecture provides access to cloud-native technologies that help engineers develop innovative technical solutions. For example, cloud providers offer artificial intelligence and machine learning (AI/ML) frameworks, containerization workflows and orchestration, and scalable computing to expedite development. Combined with the high-speed connectivity 5G offers, telco companies can expand their offerings across sectors such as the Internet of Things (IoT), autonomous vehicles, and smart cities.

Network resilience

Telco providers operate under strict service-level agreements, often aiming for a 99.99% uptime. Telco cloud allows engineers to improve service uptime with cloud-native software capabilities. For example, engineers create redundant nodes, self-healing clusters, and automated load balancing to ensure high service reliability and availability.

Resource optimization

When deploying services on dedicated hardware, communication service providers might over-provision resources. Consequently, they incur higher operational expenditure in addition to initial capital expenditure. With a cloud-native approach, CSPs can optimize resource usage and reduce expenditure. For example, public cloud offers a pay-as-you-go model that enables engineers to scale cloud networking resources in response to demand fluctuations.

Telco cloud encompasses these components to help with high-throughput, scalable, and distributed network access.

Network Function Virtualization (NFV)

Network function virtualization (NFV) is a technology that replaces traditional networking services previously running on proprietary hardware. In the past, network engineers installed dedicated load balancers and routers, an expensive and time-consuming process.

NFV allows engineers to virtualize these services on a virtual machine, which they control using a hypervisor and orchestration software. A hypervisor is a special controller software that allows multiple virtual machines to share resources. Meanwhile, orchestration software coordinates fleets of virtual machines so that they can operate optimally. By decoupling the networking services from specific hardware, engineers can operate virtual network functions (VNFs) on private or public clouds.

Software-Defined Networking (SDN)

Software-defined networking (SDN) is a method that decouples the control and data planes with an API. In an SDN, the control plane acts as the intermediary decision-maker between networking hardware and applications. By using the API, the network controller can communicate directly with routers, load balancers, firewalls, and other hardware. If an application needs access to resources, the controller processes the requirement by making API calls.

Cloud-native network functions (CNFs)

Cloud-native network functions (CNFs) are containerized microservices that provide networking features. Conventionally, these networking services run on purpose-built hardware, which is challenging to scale and is limited by geography. Over the years, telcos have shifted these services to the cloud. For example, telco companies install physical virtual private network (VPN) hardware in conventional setups. With the advancement of cloud technologies, they replicate and deploy VPN functionalities in cloud containers.

Edge computing infrastructure

Edge computing infrastructure consists of small, distributed data centers located near data collection points. These edge locations allow telco cloud to bring data processing capabilities closer to data sources and users. Additionally, a network of edge locations is crucial to support modern 5G-driven solutions. For example, telemedicine, autonomous cars, and 5G Radio Access Network (RAN) rely on edge computing to avoid sending massive data to the central network.

Orchestration and automation

Migrating from self-managed networking hardware to the cloud requires managing numerous interdependent components. To do that, network engineers use cloud computing and automation tools that cloud providers provide. These tools allow engineers to set up distributed cloud servers, create virtual machines, deploy network functions, enable mesh communication, and more. Moreover, there are services to scale resources, monitor node performance, and detect anomalies with cloud-native services. Some cloud providers also provide services for telcos to run predictive analysis, such as traffic forecasting and root-cause analysis using machine learning.

Telco cloud provides a scalable network infrastructure that enables distributed deployment across edge locations.

5G network deployment

5G network operates by separating the control and user plane to handle massive traffic with a service-based architecture. The control plane manages connections, while the user plane processes data from connected devices. While 5G improves network speeds by a considerable amount and significantly reduces latency, real-world implementation relies on creating an interconnected data pathway.

Telco cloud provides a distributed computing platform that abstracts physical networking interfaces. It bridges infrastructural gaps that CSPs require to deliver a consistent quality of service to 5G users. Network engineers orchestrate services to reroute traffic, increase capacity to handle traffic, and ensure endpoint delivery meets the targeted service-level agreement (SLA).

Mobile core networks

Mobile core networks handle voice and data routing between users and external data networks. Historically, these core networks are constrained to rigid, purpose-built hardware. The 4G network marked a shift to virtualization technologies, which is further accelerated by 5G.

Telco cloud, which enables 5G connectivity, offers features such as network slicing, service-based architecture, and edge computing. This allows engineers to build and deploy new network applications using APIs, Container-as-a-Service (CaaS), and other cloud-native capabilities.

Content delivery networks

Content delivery networks (CDNs) are typically designed to cache frequently accessed content so that users can retrieve it quickly. Telco cloud shifts the CDN’s role from static storage into a dynamic computing node capable of edge processing. For example, you can introduce personalization features that allow CDN servers to tailor content in real time for end users.

IoT connectivity platforms

Telco cloud technology provides edge computing capabilities that enable real-time processing of sensor data distributed over multiple locations. IoT applications, such as fleet management and telehealth devices, can ingest and store massive amounts of data across the network. Additionally, with improved observability, organizations can respond more effectively to changing environments, thereby improving business outcomes. CSPs can offer this service to customers with telco cloud.

Virtual private networks

Virtual private networks (VPNs) traditionally operate on dedicated networking hardware to provide secure data exchange. Telco cloud virtualizes VPNs as CNFs, allowing network architects to deploy them across geographical locations through containerized network functions, for scalability. Software-Defined Wide Area Network (SD-WAN) extends the capabilities for traffic across Wide Area Networks (WANs), providing a secure and reliable high-performance network.

General cloud infrastructure provides scalable computing resources that power enterprise software applications. It allows IT teams to orchestrate workloads, store data, and digitally transform business processes without investing in physical infrastructure.

Telco cloud is a specialized networking environment that consists of the public cloud infrastructure, private data centers, and edge locations. Unlike general cloud environments, telco cloud service provides high availability that meets carrier-grade specifications.

AWS provides the technologies, solutions, and support to help telcos modernize their network and business operations, enhance customer experiences, and create new enterprise service offerings.

AWS is uniquely positioned to help telcos use data, analytics, and artificial intelligence to transform their networks and operations end-to-end, from core to RAN, and create new lines of business. Explore solutions on AWS:

• Amazon Connect is a cloud-native, omnichannel contact center service that enables telcos to offer cost-effective customer service solutions.
• AWS IoT offers a comprehensive portfolio of fully-managed cloud services that enable service providers to connect and manage billions of devices and process trillions of messages at scale.
• AWS Telco Network Builder helps you automate the deployment and management of your telco networks on AWS.

Get started with telco cloud on AWS by creating a free account today.