In economics, productivity improves when a business or economy produces more with the same resources or achieves the same results using fewer resources. That being said, simply increasing output without a proportional increase in efficiency does not necessarily result in higher productivity.
Productivity is a key metric for success in any modern organization. Technology increases productivity by accelerating processes, reducing errors, automating repetitive tasks, providing instant access to information, and streamlining communication and collaboration. Different industries require tailored solutions for their specific challenges, and addressing these has become simpler with the advent of cloud technology.
Related: The Telco Cloud-Native, 5G-Core Revolution
Life Before Cloud
Before cloud computing, businesses had little choice but to build, operate, and maintain their own computing resources, which were typically consolidated in physical data centers. This meant that significant upfront costs and dedicated IT teams were required. Businesses also relied on mainframe computers with shared terminals. A major drawback of mainframes is their high cost, both in terms of hardware and software. Additionally, mainframe hardware occupies more space than other computing systems and requires specialized skills to operate. Similarly, physical terminals connected via serial ports offer limited functionality and are capable of only displaying incoming data and transmitting keyboard input.
In contrast, cloud computing has introduced unmatched access to computing resources and information. Its integrated approach enables businesses and individuals to access computing resources on-demand, without investing in expensive hardware and software. Cloud computing securely stores critical data, including images, videos, contacts, and notes, while offering simultaneous updates across multiple devices and automating data backups.
The three primary types of cloud computing are public, private, and hybrid clouds. Within these deployment models, four main service categories exist: Infrastructure-as-a-Service (IaaS), Platform-as-a-Service (PaaS), Software-as-a-Service (SaaS), and serverless computing.
The Prevailing Cloud
Cloud services have become integral to sectors such as finance, government, retail, insurance, automotive, manufacturing, and more. One of the most significant advantages of cloud infrastructure is its scalability as it allows applications to automatically adjust based on demand. This elasticity ensures optimal resource utilization, enhancing performance during peak periods and reducing costs during low-demand times. Unsurprisingly, cloud computing services have emerged as a key economic driver and a promising sector globally.
In the Middle East, Saudi Arabia’s cloud infrastructure is rapidly advancing with key developments from major tech players. Huawei Cloud has begun operations to strengthen the country’s digital economy, while Zain KSA and Nokia are collaborating to enhance 5G Cloud RAN and AI RAN solutions. Additionally, Cisco is supporting Saudi Arabia’s digital transformation by launching advanced cloud centers and driving AI innovation.
Additionally, regulatory frameworks—including the CST's Cloud Computing Regulatory Framework (CCRF), the KSA Cloud First Policy by MCIT, and the National Cybersecurity Authority's Cloud Cybersecurity Controls (CCC)—are accelerating cloud adoption. Similarly, the UAE has been selected to chair the Cloud Computing Working Group of the World Bank, highlighting its leadership in digital transformation. Representing 27 countries, international organizations, and major companies, the working group aims to advance global standards and best practices in cloud computing.
As national competencies grow, cloud technology enables seamless access to a broad customer base, from small businesses to large government projects, offering secure and flexible solutions to accelerate digital transformation. In an exclusive interview with Telecom Review, Darrell Jordan-Smith, SVP, Telco, Media, Entertainment, and Industries, Red Hat, expounded on this, stating, “Cloud management and automation tools help maintain greater visibility and oversight across disparate resources.”
To get the most out of the cloud, applications should be cloud native.
The digital economy is experiencing a rapid adoption in cloud technologies and artificial intelligence (AI). For instance, through a recent, strategic collaboration, stc Group and Amazon Web Services (AWS) aim to develop integrated solutions that will facilitate a seamless transition to the AWS cloud environment while leveraging AI and machine learning (ML) technologies. These solutions will also enhance capabilities such as rapid application deployment and offer instant business insights.
Read More: Cloud-Native Solutions for CSPs and Enterprises
Why Cloud-Native Infrastructure?
In cloud-enabled solutions, an organization's application is deployed in the public cloud but still requires a physical server for operations. In contrast, a cloud-native system eliminates the need for on-premises computing infrastructure.
Cloud-native systems serve as a blueprint for building scalable web applications that enhance availability and agility. These systems facilitate the quicker deployment of new features while maintaining reliability, allowing organizations to respond swiftly to changing customer demands. Four key pillars define a cloud-native application:
- Application Architecture: Cloud-native applications adopt a microservices architecture through which large applications are broken into smaller, independent services. Traditionally, developers built monolithic applications, which were difficult to develop, test, deploy, and scale. A cloud-native approach breaks functionalities into microservices that communicate via well-defined Application Programming Interfaces (APIs). For example, an e-commerce application may consist of a shopping cart service that interacts with a payment service and an inventory service.
- Containers and Orchestration: Containers condense microservice code and necessary files, serving as the fundamental computing unit in cloud-native systems. As the number of microservices grows, container orchestration tools manage these containers to ensure smooth operation across the system.
- Development Process: Cloud-native applications rely on a highly collaborative development process, allowing for independent service creation, seamless deployment, and effortless scalability. This necessitates automation and close coordination between development and operations teams (a practice known as DevOps which leverages collaboration, communication, and automation to ensure fast and reliable application delivery). Continuous integration and continuous delivery/deployment (CI/CD) streamlines and accelerates the software development lifecycle.
- Adoption of Cloud-Native Open Standards: As the cloud-native ecosystem matures, critical components will need to be standardized, and best practices will consequently emerge. This cloud-native approach uses standardized components as building blocks, which are fortified by open standards such as Kubernetes, Jaeger, Zipkin, and OpenTelemetry.
Also Read: Advantages of Cloud-Native Technologies for Telcos
In Conclusion
Digitalization is transforming the economy, providing the necessary tools and information for the industry to capitalize on market opportunities. Cloud-native architectures facilitate this transformation without substantial upfront investments or barriers. In the telecom sector, cloud-native technology is proving to be essential in unlocking the full potential of 5G and will be a prerequisite for 6G and beyond. Early adopters of this transformation are poised to gain a significant competitive advantage, enabling quicker functionality deployment and positioning businesses at the forefront of industry-wide innovation.
Modern network architectures, including 5G Core and Cloud RAN technologies, have already been designed and standardized in accordance with a cloud-native approach. It’s clear that network transformation is not only inevitable but also a critical step in any modernization and efficiency journey.
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