Cost optimization in telecom cloud deployments: A practical framework

As telecommunications operators are evolving digitally using cloud-native architectures (also known as cloudification), cost optimization of the cloud has become a key enabler of success. This paper proposes a pragmatic framework for cost optimization for telecom cloud deployments, given the technical and organizational complexity of operating in dynamic, multi-cloud environments. In the research, cloud economics is defined for telecom and considers unique telecom features such as usage-based billing, hybrid deployments, and the overarching network-centric architecture that leads to unique cost structures. Systemic challenges are further discussed in the paper, including overprovisioning of resources, price opacity, and siloed governance across the entire value chain, to help identify potential cost optimization strategies across the telecom cloud lifecycle.
A thorough discussion of strategic cost optimization strategies now follows incorporating best practices, such as rightsizing, spot instances, auto-scaling, FinOps, and intelligent placement of workloads. These strategies will be put in to context through various representations, including a taxonomy (graph) of cloud cost components and a workload to cloud instance mapping table that will employ the telecom context. In addition, this paper proposes a comprehensive optimization framework based on actual implementations and automated implementation with a hybrid of predictive analytics, policy-based governance and algorithmic modeling.
We assess the emerging trends (like the interaction of AI, 5G network slicing, telco edge computing, and blockchain-based billing) that will change the cost optimization paradigm in the future telecoms landscape. We reference the AWS Well-Architected Framework and cloud-native observability tooling to turn strategy into actionable implementation steps that can scale. In the end, this paper shows that cost optimization is more than an auxiliary function in telecom operations; it is a competence in its own right. Cost optimization is core to maintaining financial sustainability, competitive agility and assurance of performance in modern telecoms operations.