Pursuing hyperscale economics: What, why and how telcos can do it

In this report, we evaluate whether telecoms operators can realistically pursue hyperscale economics by adopting some of the hyperscaler technologies and practices, and if so, how?

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As telco operators move to advanced, data intensive services such as 5G, they are looking to transform their network infrastructure to provide the greater flexibility, scalability and speed of innovation required to support their business needs. Increasingly, they have started to evaluate the role that cloud-native architectures and disaggregation can play within their networks to enable ‘hyperscale economics’.

This refers to the ability to separate the rate at which your capabilities scale and meet increasing demand, to the way that your cost base grows as a result.

This means an increase in capabilities is (mathematically) fundamentally different from the resources and costs needed to do so (exponential for the former in relation to linear trajectory for the latter). With the need to support growing demand across telco networks, telco operators are exploring how they can pursue hyperscale economics; nevertheless, the roadmap to achieving this still remains unclear.