Cloud Native is Not Simply a Change of Computing Architecture

In a move that tells us much about how telecom network have changed, Telefónica will build its cloud-native 5G core network using IBM Global Business Services as the system integrator while Red Hat and Juniper supply the networking platforms. 

In prior generations of mobile networks, the network would have been purchased almost turnkey from a legacy provider such as Ericsson or Nokia (or Alcatel or Lucent). It was monolithic. 

Now the network is integrated by a major system integrator using open source technology and a distributed, cloud-based and cloud native computing platform. It is loosely coupled. 

In other words, one builds a telecom core network as one would build any other computing network intended to scale. In other words, apps and functions are built how apps are created and deployed, not where they are created or deployed.  

source: Medium

The former emphasis would have been on proprietary hardware; the new approach makes heavy use of commodity hardware. The older approach relied on closed, vendor-specific software. The new approach relies on open source approaches. 

The older approach would have been voice centric. The 5G core network is essentially a computing network that runs voice and other applications, but is designed to support any app. 

Some will view this as a “mere” change of computing architecture. Others will argue it also changes the range of business models a telco can consider. In a monolithic environment, the network owner controls all apps that are lawful on the network as well as which devices can be attached. 

The internet and all cloud architectures do not work that way. All lawful devices and apps may use the network. That produces the product opportunity called “broadband access” for internet service providers. 

That same change creates the whole regime of “over the top” and loosely-coupled app creation that is “permissionless.” Any lawful and technology-compliant app can use the network. Any user or customer with the proper credentials can use such apps. 

To the extent that roles are disaggregated, so are business models. Ownership and operation of the access network does not limit third party rights to create apps that use the networks. But neither are there barriers to telco owners creating their own “third party” apps that similarly use any lawful access. 

The change is that where such apps would mostly have been designed to run “on my network,” they preferably now would be designed to run “on any lawful  network.” The difference is potential customers “only on my network, in my region or country” versus potential customers anywhere globally. 

All of that places new importance on creating value in lots of potentially new ways, most of those ways centered on becoming a supplier of end user apps or platforms to do so. Some of those apps will be “owned” by the telco and designed to run “on my network.”. Network slicing is an example. 

But many others potentially will be designed to run as any other internet app, on any network and in any country where the apps are lawful. Yet others will be targeted geographically, for reasons of language preference, business strategy, capital or human resources availability. 

The point is that the technology change to a cloud native, loosely-coupled, distributed and essentially open architecture changes the realm of business possibility. More new things are possible, but many existing things could be threatened.