As networks go cloud-native, telecom operators face pivotal choices between telco private clouds or public and hybrid clouds
As telecom networks transition to cloud-native architectures, operators face key decisions about cloud deployment models. Before, telco clouds were private clouds — end of discussion. They existed within silos operated by network operators. But, the adjacency of hyperscalers, the rise of hybrid cloud solutions and the very nature of the 5G core network are forcing a new discussion.
Now, the conversation centers on three options: private clouds, public clouds and hybrid/multi-cloud. Each strategy has significant implications around scalability, cost, security and operational flexibility.
Private telco clouds — when telcos build their own cloud infrastructure
A private telco cloud is a dedicated cloud infrastructure built and managed by telecom operators within their own data centers. This model gives operators full control over network functions, security policies and performance optimization for things like low-latency 5G and edge computing
“We call it the DIY best of breed,” David Martin, senior analyst at STL Partners, told RCR Wireless News. “It’s when the operator takes charge of it for themselves, exclusively.”
However, building and maintaining private infrastructure is capital-intensive, and scaling a private cloud requires additional hardware investments. Further, private clouds are less agile than public clouds and, therefore, have longer upgrade and innovation cycles.
Private telco clouds suit large operators that both require full control and custom performance optimizations. They also need to be able to come up with the investment. “You have to differentiate, I think, between the sort of big Tier 1 operators, which have gone a lot further with their cloud-native transformation, and have very much already migrated to cloud-native operations, and for the most part, also developed quite substantial private telco clouds that they run most of the cloud-native network functions on so predominantly via their own cloud infrastructure,” said Martin.
Verizon, Rakuten Mobile and Deutsche Telekom are all examples of operators using a private cloud. Verizon, for instance, developed the Verizon Cloud Platform (VCP), a distributed, webscale-enabled cloud-native platform designed to host various network functions and support systems. It accommodates real-time communications functions, including packet data, IMS core functions, 4G LTE function and 5G core functions.
Additionally, VCP supports internal tools for managing customer experiences. By building and operating this internal cloud, Verizon ensures that its native telco workloads run more efficiently, with improved performance and resiliency.
Public cloud partnerships — the role of hyperscalers
That isn’t to say that Verizon — and many other operators, even the big ones — aren’t striking public cloud partnerships. In the case of Verizon, the telco integrated AWS Wavelength into its 5G network to enable developers to build applications that require ultra-low latency. More generally, outsourcing cloud infrastructure allows operators to reduce infrastructure costs while benefiting from scalability, automation and AI-driven analytics.
Boost Mobile’s Chief Technology Officer Eben Albertyn emphasized how public cloud enables dynamic scaling without upfront infrastructure investment: “We can grow and shrink at a moment’s notice… Because I’m not a traditional telco, I don’t have traditional data centers.”
Since Boost doesn’t own its network infrastructure, it can dynamically scale capacity up or down by simply requesting more or fewer resources from AWS — no overprovisioning, no wait. “All I do is tell Amazon: you can have the hardware back. I don’t need it anymore. This means that my network grows and shrinks exactly based on the traffic,” he said. The result: reduced waste, lower costs, and a smaller carbon footprint.
Taking the efficiency offered by a public cloud deployment even further, Boost Mobile also recently became the first mobile operator to deploy Nokia’s cloud-native 5G Voice Core on a public cloud. Prior, each of the carrier’s IP Multimedia Subsystem (IMS) functions was a physical deployment. Now, explained Albertyn, these IMS voice functionalities have been consolidated into one cloud network function. “Which means that deployments are automated so that configuration is faster and easier because it’s all inside one physical deployment,” he said, adding that Boost’s infrastructure has also reduced by more than 90%, lowering its Carbon footprint — “it’s less electricity, less hardware, less cooling, and all of those things mean that our operational costs reduce significantly.”
Other telcos are also embracing the cloud: AT&T moved its 5G core to Microsoft Azure, while Vodafone partnered with Google Cloud on AI-powered network automation.
Still, the public cloud comes with trade-offs: potential vendor lock-in, data sovereignty concerns and limited customization for highly specialized network workloads.
Hybrid and multi-cloud strategies — balancing flexibility, control and cost
A hybrid cloud combines private and public cloud environments, while a multi-cloud approach integrates services from multiple public cloud providers. Together, these strategies allow telecom operators to leverage the best of both worlds: the security and control of private clouds, and the scalability and cost-efficiency of public clouds.
For telecom operators, hybrid and multi-cloud architectures offer several advantages. One key benefit is the ability to avoid vendor lock-in, as using multiple cloud platforms increases flexibility and bargaining power. These models also enable optimized workload distribution— critical and sensitive workloads can be hosted on private clouds for greater control and security, while less-sensitive tasks are deployed on public clouds to benefit from elasticity and lower costs. Additionally, hybrid and multi-cloud approaches support disaster recovery and redundancy, ensuring high availability and fault tolerance across services.
However, these benefits come with notable challenges. Managing multiple cloud environments can be complex and typically requires sophisticated orchestration tools to ensure consistency and operational efficiency. Security and compliance also demand attention, as data must be synchronized and governed across diverse platforms. Interoperability remains a persistent issue—seamless integration between disparate cloud systems is technically demanding and can strain internal resources.
So, who is using this model? Examples include Telefónica, which balances workloads across AWS, Azure and Google Cloud through a multi-cloud strategy, and Orange, which is deploying a hybrid cloud model to optimize its 5G and edge computing initiatives.
In summary, hybrid and multi-cloud strategies offer telecom operators a compelling balance — leveraging both private and public cloud environments to maximize flexibility, control, and resilience.
