Telco cloud: two words that can unsettle many in the telecommunications industry. Yet recent initiatives from Nokia and Ericsson are intended to support operators as they navigate cloud transformation projects.
Nokia has officially opened its Cloud Collaboration Hub in Singapore. The hub “enables operators to visualise, develop and execute cloud offerings,” and joins existing hubs in Texas and the UK.
The Singapore hub is designed to address the widespread cloud skills gap that many operators face when building cloud services. Nokia identifies this skills shortage as a major barrier to successful cloud deployments. Research cited by industry commentators has repeatedly found that many organisations encounter IT professionals who lack the necessary cloud expertise.
According to Nokia, the hub’s strong partner ecosystem helps deliver best-in-class open-source cloud solutions and provides immediate cloud development skills to meet the needs of digital service providers. The facility aims to accelerate operator capabilities across design, orchestration, and deployment, enabling faster time-to-market for cloud-based telecom services.
Meanwhile, Ericsson has launched its Network Management as a Service (NMaaS) offering, which supports operators in their journeys to virtualisation, software-defined networking (SDN), and — potentially — 5G network transformation. NMaaS provides managed network operations and tooling so operators can focus on their core business while adopting modern, software-driven architectures.
Several regional US operators have already adopted Ericsson’s service, including Carolina West Wireless, Cellcom, Chariton Valley, and East Kentucky Networks. Amy McCune, head of the customer unit for regional carriers at Ericsson North America, said the offering allows regional operators to concentrate on serving customers while delivering the services subscribers expect.
These two developments illustrate different approaches on separate continents, but they reflect the same industry trend: technologies such as SDN and network functions virtualisation (NFV) are driving operators toward software-defined, virtualised networks. As networks evolve, flexible orchestration of data center resources, network slicing, and distributed or mobile edge computing become critical enablers for delivering 5G services.
Gong Yuqing, marketing director at Huawei, has emphasised the importance of flexible orchestration and edge computing for 5G deployments. Operators need orchestration platforms capable of dynamically allocating compute, storage, and networking to support diverse services and service-level agreements across a distributed cloud environment.
Analysts have also noted that the growth of cloud-related services forces telecom operators to adapt. While operators are unlikely to rival the scale of hyperscale cloud providers such as Amazon, Microsoft, and Google in infrastructure services, they do have distinct advantages. Igor Babic, a research analyst at Analysys Mason, argued that operators should leverage their local presence, existing customer relationships, deep understanding of connectivity requirements, and proximity to end users to compete and collaborate effectively in cloud markets.
Rather than imitating hyperscalers, operators can partner with IT specialists and focus on differentiated offerings that combine connectivity, managed services, and localized cloud capabilities. Such strategies can help operators capture value from cloud-related revenue streams, particularly for customers that require low latency, regulatory compliance, or dedicated connectivity.
Telecom industry leaders also point to the value of hybrid cloud models, where businesses combine private and public cloud services to meet performance, security, and regulatory needs. Suren Arustamyan, COO at JeraSoft, noted that operators increasingly support hybrid cloud and Internet of Things scenarios that mix public and private resources. Improvements in data center performance and energy efficiency remain high priorities as operators expand cloud and edge deployments.
Overall, the combination of operator-focused collaboration hubs, managed services like NMaaS, and strategic partnerships offers a pragmatic path forward. By building skills, embracing orchestration and edge computing, and focusing on distinctive strengths such as local presence and connectivity expertise, operators can play a meaningful role in the expanding cloud ecosystem without having to replicate the scale of hyperscale providers.
Interested in hearing industry leaders discuss these topics and share real-world experiences and use cases? Attend industry events and conferences focused on cloud, security, and IoT to learn more about practical deployments, challenges, and best practices.