Skip to main content

Cloud Artificial Intelligence will Transform Mobile Apps

The ongoing growth of cellular wireless network applications creates new demand for emerging technologies. Fifth-generation (5G) wireless communication includes several network layers that leverage technology such as Open Radio Access Network (Open RAN), network slicing, and cloud edge computing.

Within cloud-edges, the broader Artificial Intelligence (AI) industry is witnessing a migration of AI to the edge. According to the latest worldwide market study by ABI Research, the edge AI training and inference market for chipsets is expected to grow from $2.6 billion in 2020 to $10.7 billion in 2025, at a CAGR of 35 percent.

Furthermore, new enterprise use cases place new performance, agility, and latency requirements on the network. These, along with the ongoing quest to drive new growth, are compelling the industry to shed human-intensive networks in favor of an intelligence-driven ecosystem.

5G Network Market Development

According to the ABI assessment, telecom service providers are already actively expanding the utilization of AI and machine learning (ML) beyond merely digitizing internal and external interactions.

"Many Communication Service Providers (CSPs) are already on a journey to become augmented service providers where AI augments human decision making for prediction, analysis, and new revenues," said Don Alusha, senior analyst at ABI Research.

Rakuten, for example, has renamed its Network Operations Centers (NOCs) to Service Experience Centers (SECs) as it implements extreme automation for self-aware networks. In addition, Telefónica Tech is a new venture to incubate new growth based on AI/ML, cloud and IoT/Big Data.

"AI/ML capabilities enable the industry to leverage IT-oriented nimbleness and scale as they seek to manage the complexities of today’s networks and establish new commercial models,” Alusha adds.

New commercial models will need to complement existing asset-intensive environments where an understanding of the cost of goods sold, inventory turns, managing factories, and supply chains is key to success. In the new world of cloud, AI/ML, and software, technology vendors do not manufacture a product and sell it.

"They sell a capability. They sell knowledge. They create it at the same time they deliver it. The business model is different and so are the economics. DriveNets, Enea Openwave, Ericsson, HPE, and Nokia are some vendors among many others that are building software-centric ways of marketing and selling solutions. The point is that AI/ML-based platforms are re-shaping existing commercial models. The winners will be those who act decisively and thoughtfully," Alusha says.

For CSPs, the continued maturity of AI/ML will be a key enabler of new value creation in their journey to become a digital service provider. Technology is a key pillar of that journey, but there are other key dimensions, that if not considered part of the overall digitalization journey, may limit CSPs’ ability to capture the full value at stake.

Specifically, change management is critical and constitutes the bulk of the effort as CSPs embrace new ways of working. Equally important is to embrace openness and break the siloes, two sides of the same coin. CSPs that are investing in AI/ML-based platforms must consider that efficiency will come from sharing knowledge and embracing open platforms where APIs and data can be easily accessed.

Outlook for 5G and AI/ML Applications Growth

AI/ML, big data, and open APIs offer agility and the ability to drive innovation. Consequently, the new world in cellular must start with a foundation on software and API-led connectivity. The ability to harness the power of software-defined networking platforms and AI/ML capabilities are the future.

"This may well mean that, in addition to bolting on software and intelligent capabilities, CSPs need to learn how to build them as cloud-edges, Open RAN, and 5G core proliferates in the ecosystem," Alusha concludes.

This is an emerging market where mobile network operators can differentiate their network services with value-added offerings. I believe that open innovation methodologies will enable service providers to engage their chosen technology partners that become part of evolving and expansive 5G ecosystems.

Popular posts from this blog

AI Semiconductor Revenue will Reach $119.4B

The Chief Information Officer (CIO) and/or the Chief Technology Officer (CTO) will guide Generative AI initiatives within the large enterprise C-Suite. They may already have the technical expertise and experience to understand the capabilities and limitations of Gen AI. They also have the authority and budget to make the necessary investments in infrastructure and talent to support Gen AI initiatives. Enterprise AI infrastructure is proven to be expensive to build, operate and maintain. That's why public cloud service provider solutions are often used for new AI use cases. AI Semiconductor Market Development Semiconductors designed to execute Artificial Intelligence (AI) workloads will represent a $53.4 billion revenue opportunity for the global semiconductor industry in 2023, an increase of 20.9 percent from 2022, according to the latest worldwide market study by Gartner. "The developments in generative AI and the increasing use of a wide range AI-based applications in data c

Industrial Cloud Computing Apps Gain Momentum

In the manufacturing industry, cloud computing can help leaders improve their production efficiency by providing them with real-time data about their operations. This has gained the attention of the C-suite. Total forecast Industrial Cloud platform revenue in manufacturing will surpass $300 billion by 2033 with a CAGR of 22.57 percent, driven by solution providers enhancing platform interoperability while expanding partner ecosystems for application development. ABI Research found the cloud computing manufacturing market will grow over the next decade due to the adoption of new architectural frameworks that enhance data extraction and interoperability for manufacturers looking to maximize utility from their data. Industrial Cloud Computing Market Development "Historically, manufacturers have built out their infrastructure to include expensive data housing in the form of on-premises servers. The large initial upfront cost of purchasing, setting up, and maintaining these servers is

Demand for Quantum Computing as a Service

The enterprise demand for quantum computing is still in its early stages, growing slowly. As the technology becomes more usable, we may see demand evolve beyond scientific applications. The global quantum computing market is forecast to grow from $1.1 billion in 2022 to $7.6 billion in 2027, according to the latest worldwide market study by International Data Corporation (IDC). That's a five-year compound annual growth rate (CAGR) of 48.1 percent. The forecast includes base Quantum Computing as a Service, as well as enabling and adjacent Quantum Computing as a Service. However, this updated forecast is considerably lower than IDC's previous quantum computing forecast, which was published in 2021, due to lower demand globally. Quantum Computing Market Development In the interim, customer spend for quantum computing has been negatively impacted by several factors, including: slower than expected advances in quantum hardware development, which have delayed potential return on inve