Cloud service providers Amazon.com Inc. (NASDAQ:AMZN), Microsoft Corp (NASDAQ:MSFT) and Alphabet Inc.’s (NASDAQ:GOOGL) are battling out for telecom customers to take advantage of their service. The 5G network rollout is not an opportunity for telecommunication providers and smartphone makers, but Cloud computing giants could also benefit.
5G network will benefit cloud providers
The tech giants seek to leverage investments that telecom providers such as Vodafone Group and Verizon Communications Inc. (NYSE:VZ) have made in upgrading their networks by enticing them to adopt cloud computing infrastructure. The cloud providers promise telecom companies that they will help them deliver faster 5G speeds with high data capacity at an affordable cost. Competition for telecom customers is growing between Amazon and Microsoft for dominance in the cloud computing market. Yousef Khalid the head of a newly formed unit within Microsoft Azure cloud computing service focusing on telecom business, said that they are in a critical juncture.
Amazon enhanced its effort two years ago to secure telecom business with Verizon using AWS cloud computing for internal daily corporate network functions. According to AWS VP Dave Brown, they have been exploring the potential use of the cloud for telecom business. Browns said that AWS didn’t lend its services to the application but was only operating its data centres. To attain high connection speeds, the telecom company had to run its communications and AWS moved servers closer to customers. As a result, AWS parked a server inside Verizon and run cloud service from there.
Cloud-computing providers battling for telecom customer
Microsoft also signed a broad collaboration with AT&T (NYSE:T) last year for using Azure in delivering the carrier’s 5G network in some markets. Also, AWS entered a similar partnership with Verizon in 2019. At the beginning of this year, Microsoft agreed to purchase Affirmed Networks and Metaswitch Networks, both of which develop software for managing telecom networks. Microsoft shelled around $2 billion combined in the deals in part to keep pace with Amazon. Google is also trying to get into the telecom business, and recently it announced a strategy for securing telecom customers.