Evaluating private versus public cloud models for CSPs’ cloud-native mobile core deployments

Communication service providers (CSPs) have an important opportunity with 5G standalone (SA) to give their 5G investments a boost and to drive new revenue growth. CSPs can use 5G SA to establish a truly cloud-native mobile core to enhance network performance, enable new consumer and enterprise use cases, improve customer service and reduce total cost of ownership (TCO). CSPs are committed to this path and have strong plans to adopt cloud-native and containerised mobile cores (across 5G SA, 5G non-standalone (NSA), legacy (4G/LTE), private 5G, and IP multimedia subsystems (IMS)) to position themselves for future revenue growth and innovation in areas such as AI.

However, CSPs face the challenge of choosing between private or public cloud as the ideal deployment model for their cloud-native cores. The public cloud has emerged as a potential option for CSPs in recent years, but its suitability for deployment first requires a thorough evaluation of all technical and strategic factors, as well as a deep analysis of TCO, not just an analysis of capex. 

Analysys Mason conducted a survey in early 2024, in collaboration with the 5G Deterministic Networking Alliance (5GDNA), which included responses from 60 Tier-1 (accounting for 70% of respondents), Tier-2 and Tier-3 CSPs worldwide. Based on this survey and other Analysys Mason research, we found that private cloud deployments can satisfy more technological and commercial criteria than public cloud deployments, and private cloud models can also provide CSPs with the optimal TCO in the medium to long term.