Page 44 - Red Hat PR REPORT - JANUARY 2025

1/15/25, 1:20 PM Latest News
By Ian Hood, Telecommunications chief technology officer, Red Hat

The pace of change continues to accelerate and the ecosystem surrounding our telecom industry thrives on

tackling innovation through open collaboration. With ongoing operational and economic challenges to stay
competitive, service providers are taking a measured and deliberate path forward, with a focus on business
benefits, while constantly adapting to ongoing changes. Many service providers are also tackling the

transformation of their customer and business processes to evolve from telcos to digital tech companies. In
the coming year, service providers will continue to focus on a number of key themes, as follows.

Driving expansion and commercial success of 5G

Next generation 5G continues being deployed globally, with greater focus on identifying successful business
models as well as coverage expansion. While competition to lead the industry remains fiercer than ever,

commercial success has been somewhat slower than expected. To fully unlock the potential of 5G, we will
see a renewed focus on fresh operational methodologies, innovative business opportunities, and new

partnerships.

Using AI to improve business and resource efficiency

AI has already made significant strides over the past few years, and in 2025, this momentum will continue

with tremendous speed and have more impact on how we live, especially in telecommunications. AI is well
suited to the distributed nature of telco networks, enabling automation of lifecycle management, providing

insights across every segment of technology, every device and service. AI is poised to accelerate the offering
of innovative new experiences, while improving business and resource efficiency. While some companies

may achieve substantial annual gains enabled by AI, leaders should identify a realistic goal for increasing
productivity and operational efficiency through AI and implement it across their business accordingly.

Service providers have the opportunity to control their destiny. If they are truly willing to disrupt themselves,
break away in their market, and embrace AI, they will survive this transition. Now is the time to focus on

disruption and speed.

Harnessing observability to enable autonomous infrastructure
Observability enables a data-driven approach to automating the infrastructure across hardware, software,

and cloud deployments. Data is the new differentiator to the value of service provider futures. Combining
predictive analytics, generative AI (gen AI), and open APIs enables service providers to talk to their data to

provide insights and operational recommendations with closed-loop automation.

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