An Operator's Point of View

Why It Matters

Operators that master cloud‑native, AI‑driven, and sovereign solutions will preserve relevance against hyperscalers and unlock new revenue from 5G and AI services.

Key Takeaways

• Telcos aim to reach 70% cloud workloads by 2027.
• GenAI inference will drive 40% of data‑center demand by 2030.
• Operators are shifting from siloed VNFs to cloud‑native CNFs.
• Sovereign AI emphasizes local data, model, and infrastructure control.
• T‑Systems’ T‑Cloud public offers 80% hyperscaler functionality to enterprises.

Summary

The presentation offered an operator‑centric view of the telco‑cloud evolution, highlighting how traditional carriers are re‑engineering their networks to embrace cloud‑native architectures, AI services, and sovereign data strategies. Richard Simon, CTO of T‑Systems, outlined the current state: roughly 44% of Deutsche Telekom workloads already reside in the cloud, with a target of 70% by 2027, while AI inference is projected to account for 40% of data‑center demand by 2030.

Key drivers include the shift from siloed virtual network functions (VNFs) to cloud‑native network functions (CNFs), pressure to monetize 5G, and competition from hyperscalers. The rollout of an industrial AI cloud in partnership with Nvidia—delivered in under six months—demonstrates rapid innovation, and T‑Systems’ T‑Cloud public now delivers about 80% of hyperscaler capabilities for enterprise customers.

Simon emphasized sovereign AI as a strategic imperative, defining it as full control over compute, data, model training, and inference within national or organizational boundaries. Recent high‑profile cloud outages have amplified demand for locally hosted, highly available AI workloads, prompting operators to replicate hyperscaler services with greater resilience.

The implications are clear: telcos must accelerate cloud‑native adoption, embed AI inference at the edge, and offer sovereign AI platforms to stay competitive, retain revenue streams, and meet evolving regulatory and customer expectations.

Original Description

Richard Simon, CTO, T-Systems