Why Telecoms Must Embrace Cloud Services Now
The telecom industry is at a turning point.
Connectivity remains the backbone of modern digital life, yes, but traditional revenue streams like voice and SMS are shrinking. Meanwhile, newer streams, such as the cloud services market, are booming. Global public cloud services alone is projected to reach $1.35 trillion by 2027 (Gartner).
That’s a massive opportunity, yet many telecoms are slow to act—risking their ability to stake a claim in this high-growth market.
Telecoms will have to choose: evolve or risk becoming obsolete.
The thing is, telecoms have a built-in advantage in cloud distribution, should they be open to making the leap. They already provide essential network services to a trusted customer base, making cloud expansion a natural extension. More importantly, a 2023 McKinsey study found that enterprises prefer a single provider for both cloud and connectivity. This means telecoms not only have a ready-made market but also a strategic edge—businesses would rather buy from them than from a separate cloud provider.
By launching a digital cloud marketplace, telecoms can unlock new revenue streams, strengthen customer loyalty, and secure their place in the evolving telecom landscape. But success requires more than just making cloud services available—it demands a strategic shift, embracing change, and leveraging their strengths in infrastructure and customer relationships.
What is a Digital Cloud Marketplace?
A digital cloud marketplace is an online platform that allows businesses to purchase, provision, and manage cloud services from multiple providers in one place. Think of it like an app store, but for enterprise cloud solutions. These platforms can offer everything fromInfrastructure as a Service (IaaS) and Software as a Service (SaaS) to cybersecurity andAI-powered tools.
Major cloud providers like Microsoft Azure, AWS, and Google Cloud already operate their own marketplaces, but telecoms can create their own tailored ecosystems for their customers. By doing so, they can help enterprises navigate the complexities of cloud adoption while generating new revenue streams.
The Cloud Monetization Opportunity for Telecoms: 5 Ways to Generate Revenue from Cloud Services
Cloud services present a lucrative opportunity for telcos. And while moving into this space is not as simple as flipping a switch, telecoms can monetize cloud services through a digital marketplace in several ways:
1. Reselling Cloud Services – IDC reports that the cloud reseller market is expected to grow at a compound annual growth rate (CAGR) of19% through 2026. And telecom operators can act as resellers for major cloud platforms, offering bundled solutions that include cloud infrastructure, software, and managed services.
2. Usage-Based Pricing Models – Telecoms are already well-versed in usage-based pricing for network services, and for this reason they are better poised to enter this market than other new players. By leveraging their existing billing infrastructure, they can implement flexible, consumption-based models for cloud services, ensuring recurring revenue and aligning with how businesses consume cloud resources.
3. Value-Added Services – Beyond just selling cloud solutions, telecoms can offer consulting, integration, and managed services. According to a 2024 report by Deloitte, enterprises are willing to pay a premium for managed cloud services that simplify deployment and management.
4. Partnering with SaaS Providers – By onboarding independent software vendors(ISVs) onto their marketplace, telecoms can provide an ecosystem of third-party applications, increasing customer stickiness and boosting sales.
5. Bundling with Connectivity – Telecoms can differentiate themselves by offering cloud services alongside 5G and fiber-optic solutions. As mentioned in that earlier 2023 study by McKinsey, this is actually the preferred route for enterprises, as it simplifies vendor management.
Key Challenges in Cloud Marketplaces (and How TelecomsCan Overcome Them)
While the opportunity is massive, launching a successful cloud marketplace comes with challenges:
· Navigating Cloud Vendor Partnerships: Success in cloud marketplaces requires strong vendor relationships and favourable pricing and revenue-sharing agreements. Some marketplace platform providers, like Apptium, have strong existing relationships with cloud providers and can help telecoms establish these partnerships and streamline entry into cloud reselling.
· Developing an Intuitive Marketplace: A seamless user experience is critical. A poorly designed marketplace will deter customers, while a well-integrated one will increase adoption. Vendors like Apptium offer pre-built marketplace solutions with intuitive interfaces, reducing the complexity of implementation[CG1] . And custom branding capabilities help seamlessly integrate a marketplace into a company’s website.
· Educating Sales Teams and Customers: Many businesses still rely on traditionalIT procurement methods. Telecoms need to invest in customer education and sales enablement to drive cloud adoption.
· Ensuring Security and Compliance: Data privacy and regulatory compliance must be top priorities. Offering secure cloud solutions with compliance certifications can set a telecom marketplace apart. Cloud marketplace platforms like Apptium’s Cloud Commerce Platform are certified to meet industry security standards, even simplifying and automating adherence to local compliance laws, easing the burden on telecom providers.
The Future of Telecom and Cloud: A Profitable Partnership
As businesses continue to migrate to the cloud, telecom companies have a golden opportunity to establish themselves as essential cloud brokers. By creating a digital cloud marketplace, telecoms can diversify revenue streams beyond connectivity, strengthen customer relationships through value-added services, and differentiate themselves in an increasingly competitive market.
The question isn’t whether telecoms should enter the cloud marketplace—it’s whether they can afford not to.
Want to learn how your telecom business can launch a cloud marketplace? Contact Apptium today!
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