Telco Cloud Revenue

This ABI Research report provides market data for telco cloud revenue, encompassing packet core network software elements in 4G and 5G mobile networks. The report also includes revenue for Network Function Virtualization Infrastructure (NFVI) hardware for compute, storage, and network. ABI Research also provides telco cloud market sizing for professional services. Widespread cloud computing adoption introduces significant potential for changes to networks. For networks specifically, key reasons driving the need for professional services are open-model elements, multi-vendor networks, new technologies, and expanded business scope for Communications Service Providers (CSPs).

By and large, ABI Research expects very modest growth for traditional portfolios of hardware and virtual elements in core networks for MBB. Our analysts forecast the telco cloud market to grow at a 6% Compound Annual Growth Rate (CAGR), reaching a US$16.9 billion value by 2029. 

Delivery types considered for this market forecast are as follows:

• Software: Licensed software (VNF, CNFs) for EPC and 5GC network only for CSPs MBB business. This was the largest revenue driver for telco cloud infrastructure. 
• Hardware: Core network and cloud and NFVI (compute, storage, and networking). Growing at just a 1% CAGR, hardware is the smallest segment. 
• Professional Services: Professional services include all software- and hardware-related services that are not explicitly tied to software products. This is the fastest-growing segment (9% CAGR) within the telco cloud market.