We built a TCO model to assess the cost benefits of deploying Microsoft’s Azure Operator Nexus compared to alternative options for network cloud deployment

The problem

• Microsoft asked Analysys Mason to make an independent assessment of its cloud-native network platform Azure Operator Nexus capex and opex benefits as well as other strategic value drivers. The main goal of this research was to promote the benefits of Microsoft’s managed, hybrid telco cloud infrastructure proposition for cloud-native network functions in comparison to DIY private network cloud deployment options

The solution

• We developed a TCO model of a cloud-native 5G core network for a typical national-scale CSP implemented in two ways:
  • a private telco cloud implemented and managed in-house
  • a managed telco cloud solution based on Azure Operator Nexus
• A hybrid scenario was also created to test the cost benefits of deploying some network functions using public cloud while maintaining the remaining network functions on-premises
• We interviewed several Tier-1 CSPs to obtain insights into their cloud network practices, labour resources and other costs and TCO factors
• We modelled the key operational processes and resource requirements (in terms of FTEs) of a cloud-based network in a highly granular manner to assess the impact that automation would have on opex
• Some in-house datasets, including forecast mobile traffic and other demographic information, were also used to support the calculation

Figure: Illustration of TCO results

The result

• Analysys Mason produced a TCO model as well as a report that our client could use to educate the market about the TCO reduction and other strategic benefits of using Azure Operator Nexus as the cloud infrastructure