Written by Nick Wood for Telecoms.com
According to a report, the migration of 5G workloads to the public cloud is taking longer than expected due to the slower pace at which the industry is rolling out 5G standalone (SA).
That’s the primary reason behind Dell’Oro’s decision to lower its growth forecast for revenues generated by 5G SA workloads hosted on public cloud.
The research firm expects cumulative revenue to reach $5.4 billion by 2027, representing a five-year compound annual growth rate (CAGR) of 65%.
While that’s still impressive, it is considerably lower than its previous forecast. Last August, Dell’Oro predicted that cumulative revenues would show a CAGR of 88% in the five years to 2026, hitting $4.6 billion.
“The forecast has been reduced due to the slow migration to 5G SA by mobile network operators (MNOs) for their eMMB (enhanced mobile broadband) networks and by enterprises for their 5G SA private wireless networks,” said Dell’Oro research director Dave Bolan, in a statement.
Indeed, just 36 operators had launched 5G SA by the end of the second quarter, according to figures published earlier this month by the Global mobile Suppliers Association (GSA). That’s just one more launch since the end of Q1. In addition, the number of operators investing in 5G SA remained unchanged in the second quarter at 115.
