A report from Infosys finds that telecommunications companies are positioned to lead in cloud adoption—provided they follow through on their migration strategies.
Although the telecoms sector represented a relatively small portion (4%) of the study sample, researchers highlighted that telcos are moving ahead of many industries in adopting cloud technologies. Their main priorities include deploying AI and automation, building predictive maintenance capabilities, and expanding 5G services.
While the COVID-19 pandemic slowed cloud adoption across several sectors, the telecom industry largely maintained momentum. Cloud platforms enabled operators to keep networks resilient and maintain services at a time when reliable connectivity was critical.
Anurag Vardhan Sinha, Senior Vice President of Communications, Media & Entertainment at Infosys, commented:
“Connecting people and data regardless of distances is fundamental to what telecom companies do.
It’s only natural that telecom companies would see the promise of cloud and move quickly to adopt it.”
When it comes to leveraging the cloud to unlock AI and data-driven benefits, telecom companies scored highest among the surveyed industries, with 36% reporting they are realizing advantages in this area.
Telcos are applying AI to process and analyze vast volumes of data to generate actionable customer insights, detect usage patterns, and enhance user experiences. Automation is improving back-office functions such as billing, data entry, workforce management, and order fulfillment, reducing manual effort and accelerating operational workflows.
“Advances in automation and AI can combine with pervasive cloud adoption in order to anticipate customer needs, answer concerns and deliver delight more rapidly and in many more creative ways,” explains Vardhan Sinha.
Across industries, telecom firms ranked second-highest in hybrid cloud adoption. Eighteen percent of respondents reported that 60% or more of their IT systems are already in the cloud, and another 44% expect to reach that level by 2022.
Telecom organizations identified three primary concerns regarding cloud adoption: security (50%), the ability to measure and track value realization (39%), and regulatory compliance (33%).
Security is a prominent worry given the rise in cyberattacks targeting the sector. For example, in 2019 nearly 43% of telecom firms experienced DNS-based malware attacks, underscoring the need for strong cloud security measures.
Despite these risks, the Infosys report indicates that telecom companies remain committed to innovation. Their willingness to adopt new technologies positions them to enhance both operational efficiencies and customer-facing services. If telcos continue executing their cloud migration plans, they are likely to rank among the leaders in cloud adoption.
You can find a full copy of the Cloud Radar report here (signup required)
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