Spending on the Cloud is Booming, but Telcos Leave Half of Their Capacity Unused

New figures show that telecom operators are only using half of the cloud capacity they’ve purchased. That discrepancy arrives as spending on cloud infrastructure accelerates in an AI age.

Mike Dano, Light Reading

October 30, 2024

1 Min Read
Image: Alamy

Spending on cloud infrastructure is reaching all-time highs. But some new data indicates that telecom players are using less than half of the cloud services they’ve already paid for.

“Telecom companies aren’t using all the cloud that they have already provisioned. Our survey found that telecom companies consume only 48% of the cloud they are committed to,” wrote Infosys in a new report based on a survey of executives in the telecom industry.

Meaning, telecom companies on average haven’t yet consumed 52% of the cloud services they've already put under contract.

“The slow uptake can be attributed to the complexities of transitioning from legacy IT systems to cloud platforms, which often involves intricate interdependencies and customizations,” the firm wrote in its new Cloud Radar – Telecom Industry Report.

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About the Authors

Mike Dano

Editorial Director, Light Reading

Mike Dano is Light Reading's Editorial Director, 5G & Mobile Strategies. Mike can be reached at [email protected], @mikeddano or on LinkedIn.

Based in Denver, Mike has covered the wireless industry as a journalist for almost two decades, first at RCR Wireless News and then at FierceWireless and recalls once writing a story about the transition from black and white to color screens on cell phones.

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