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

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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?


Format: PDF filePages: 20 pagesAuthor: Yesmean LukPublication Date: May 2022

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.

Table of Contents

  • Introduction: The promise of hyperscale economics
  • Hyperscale economics: Understanding the principles and drivers
  • Approach to hyperscale: A mindset and pursuit, not an end goal
  • Key challenges: Is hyperscale economics for everyone?
  • Finding breakthrough opportunities: Key examples
  • Conclusion: Our key recommendations
  • Appendix