Summary Bullets:
• Telcos lean on emerging industry standards to further API programs.
• Key to infra/app modernization success will be a collaboration between cloud and telco/networking players.
This week’s MWC25 mega conference showcased the growing trend toward cloud consolidation in which telecommunications players are moving up the stack to offer enterprise developers and DevOps teams greater access to network and communications services.
Telcos/networking providers have set their sights on extending traditional networks through capabilities that support new AI economies required in modern application integrations and intelligent workflow automations while also catering to new (DevOps-modeled) audiences that lack in networking skills. New cloud opportunities include providing customers and partners with API services; helping implement Kubernetes container orchestration; AI/GenAI integrations and consulting; and additional emerging DevOps solutions including modern visibility/observability.
The road has not been easy, and telcos will be challenged in their efforts to move further up the cloud stack. When most global telcos began launching new API programs two years ago, they struggled to monetize the new services and attract an entirely new community of enterprise developers. While developers are anxious to get their hands on advanced communications features that would enhance their modern apps, they were ill-equipped to integrate the complex networking configurations required. Developers lean heavily on open-source software (OSS) technology, especially those associated with emerging technologies such as containerization. Infrastructure providers sorely lack open API standards for their network APIs.
These issues are slowly being addressed. Efforts have been underway to rectify the situation through CAMARA, the Linux Foundation’s open-source project, which is also associated with the GSMA Open Gateway. The project is supported by 69 operator groups worldwide.
Success is dependent on infrastructure providers’ ability to leverage cloud platform innovations from key ecosystem partners, build up an army of IT integrators and other skilled professionals, and shift cultures to one that recognizes how enterprise developers operate through access to OSS.
Going forward, telcos will work to take their digital transformation services a step further by partnering with platform providers to support their core base of customers’ Kubernetes container orchestration rollouts. They recognize the opportunity to move into the DevOps space, realizing not only customers’ lack of internal expertise in emerging technologies such as intelligent automation, security, AIOps, and observability, but their inability to fathom exactly where to begin on newer technologies such as generative AI (GenAI). And while telcos are aware of the popularity of Microsoft Azure and Amazon Web Services (AWS) among developers, their research, surveys, and anecdotal discussions make it clear that organizations are faltering with digitalization efforts due to a lack of integration and consulting support.
Because GenAI represents a key example of low-hanging fruit on which to launch platform services, copilots and agentic AI will dominate investment and product roadmap priorities for telco/networking players. More than ever, it’s become clear the changing ecosystem for enterprise business transformations has significantly broadened and is now represented by telcos, networking companies, SPs/CSPs, GSIs, and of course cloud providers.
For a deeper dive into these trends and key MWC announcements, please see MWC25: Telecoms Rise up the Cloud Stack, March 7, 2025.