Omdia projects a 12% increase in CSP cloud spending in 2025, double the growth rate seen in 2024, as operators expand AI integration, automation frameworks, and containerized architectures
In sum – what to know:
Telco cloud spend to hit $24.8bn by 2030 – Global investment will grow at 7.3% CAGR, driven by AI automation and containerized network transformation.
Shift to AI and Kubernetes platforms – Over 60% of telcos prioritize AI/ML, while Kubernetes spending expands at 25% CAGR, overtaking legacy VM-based systems.
Public cloud gaining traction – Hyperscaler-based network workloads will rise from 3% to 13% by 2030, reflecting growing confidence in multi-cloud deployments.
Global spending on telco network cloud infrastructure and software will rise from $17.4 billion in 2025 to $24.8 billion by 2030, according to a new Omdia report.
The report noted that the expected surge reflects a 7.3% compound annual growth rate (CAGR) during the period, underscoring how operators are accelerating investment in cloud-native and AI-powered network transformation.
The report also stated that telcos are rapidly modernizing their infrastructure to support cloud-native network functions and AI-driven automation. It added that the migration to containerized network functions (CNFs) is encouraging telcos to focus their investments on platforms that support both virtualized and containerized network functions.
Omdia projects a 12% increase in communications service providers (CSPs) cloud spending in 2025, double the growth rate seen in 2024, as operators expand AI integration, automation frameworks, and containerized architectures.
The report also highlighted that over 62% of operators now view AI and machine learning support as essential in cloud infrastructure decisions. Vendors including Nvidia, Red Hat, and VMware are helping telcos deploy on-premises AI capabilities tailored to network needs, according to Omdia.
Spending on Kubernetes-based platforms is expected to grow at a 25% CAGR during the period, while investment in legacy VM-only environments continues to slow.
Meanwhile, the report also noted that the use of public cloud for network workloads is forecast to grow from 3% in 2024 to 13% by 2030, with hyperscalers increasingly offering telco-specific services.
Omdia noted that Red Hat leads the cloud infrastructure management segment with a 25% global market share, positioning itself as the top provider of telco cloud platforms.
“Omdia publishes a market radar on cloud platform providers for telco networks which explores capabilities of different cloud platforms for hosting telco workloads. Red Hat received the highest score in our assessment framework for the market radar. It has demonstrated an extensive go-to-market or route-to-market to serve specific requirements of the telecom industry. It also demonstrates strong capabilities across a wide range of features considered important for building and scaling telco cloud platforms,” Inderpreet Kaur, senior analyst at Omdia, told RCR Wireless News.
The analyst explained that the vendor offers multiple solutions to enable telecom operators to move to cloud-native platforms such as Red Hat OpenShift Kubernetes Engine, Red Hat OpenShift Container Platform, and Red Hat OpenShift Platform Plus.
“Red Hat also gained from the turbulence that we noticed for Vmware over the last few years. The vendor has a comprehensive strategy for supporting VM workloads, addressing both simple VM migrations as well as modernization needs of telcos,” the analyst added.
Omdia’s report concludes that AI integration and cloud-native adoption will define the next phase of telco modernization, creating more agile, automated, and software-driven networks by the end of the decade.
