AIOps is the foundation of telecom operations innovation platform to improve network availability, capital efficiency, and cyber-attacks in cloud networks.

AIOps is a critical system that dramatically reduces operational cost and improves the value of customer loyalty and brand equity. AI/ML is the green shoot that leads to self-healing, hyper scaling of resources, and maximum automation. In this new world CSPs can increase new services tenfold, turn up new edge services in minutes instead of months, and scale staff to customer ratios from 1:1K to 1:50K. These operational performance metrics are not theoretical but instead are real figures from the best run cloud hyperscaler, fintech, and e-commerce businesses.

Our thesis is that CSPs need to accelerate the adoption of ML faster and utilize the power of the technology across all areas of operations. The strategy must be unified in bringing different teams together that are isolated today, such as Network operations, Customer operations and Security operations. You can’t deliver high network availability if a DDOS attack incident is being propagated and nobody outside of security silo is aware of it. A key part of realizing the promise of AI/ML requires the democratization of the data freeing it from the technology domain silo and organizational fiefdom. Open APIs will play a critical role with key suppliers to realize the promise of AI/ML.

However, the telecommunication market has been very slow to embrace the automation of operations relative to other industries. This unwillingness to restructure operations to take advantage of low-cost machine intelligence has had a direct impact on the financial performance of CSPs. The proven AI led business models applied by innovative providers in cloud infrastructure, fintech, and digital commerce have disrupted traditional businesses. In the telecom segment hyperscale cloud providers have captured market share in core areas of the communication sector including mobile content, cloud, and edge computing. Driven by the increasing disaggregation of network and the use of AI automation, cloud providers are able to outperform traditional telecom providers in terms of operational efficiency metrics. This is largely due to advances in the use of technology deployed to replace high input cost (labor) in business operations.

AI/ML brings with it high value use cases that span, operations, planning, capacity utilization, threat detection, and energy management. We forecast that the market will grow from USD 558 Million in 2021 to USD 3.3 Billion in 2026. The wider market for AI/ML is much greater. This report focuses specifically on the Network and Security AIOps (NSAIOps) in the telecommunication segment.

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Image courtesy of Patrick Kelly