Antonio Neri, the President and CEO of HPE, at the Mobile World Congress 2024, expressed his delight at returning to the event. He highlighted the valuable interactions with customers and partners in the telco and networking industries, underscoring HPE’s enduring commitment to these sectors.
Antonio Neri noted a consistent theme among telecom operators, emphasizing their ongoing quest for cutting-edge solutions to streamline network operations and capitalize on 5G investments. With a global footprint spanning over 300 telco customers across 160 nations, HPE is deeply committed to assisting its clients in achieving these dual objectives. Antonio Neri identified three key trends driving advancements in the telecom sector: the modernization of networks, the convergence of networking technologies, and the pivotal role of AI as a transformative force.
In a bid to enhance profitability and slash operational costs, the initial step is to revamp the network infrastructure, transitioning from older models reliant on proprietary systems to open, automated cloud-native platforms. The 5G standards were formulated to facilitate this transition, enabling operators to embrace these platforms and swiftly deploy innovative 5G-based services. By embracing an efficient, cloud-native network, operators can capitalize on opportunities to offer lucrative services like private 5G connectivity.
Moreover, this shift allows operators to progress beyond mere connectivity, embracing an AI-centric network to cater to the growing demand for AI inferencing at the network edge. Hewlett Packard Enterprise (HPE) has been at the forefront of driving innovation across the network spectrum, from edge to cloud. Through collaboration with customers and partners, HPE has developed open solutions that promise efficiency, reduced complexity, and future-proofed networks, covering telco core, radio access network (RAN), and edge.
Efficiency gains at all network levels are pivotal for telcos aiming to bolster profitability. Antonio Neri said, HPE’s recent introduction of the HPE Telco Core Automation software, leveraging AI for operational enhancements, underscores this commitment. With the planned acquisition of Juniper Networks, HPE aims to further enhance its ability to address customer challenges by integrating two highly innovative networking giants. The Juniper and HPE portfolios complement each other, promising accelerated innovation in the telco market and empowering customers to modernize their networks more effectively.
This acquisition opens up avenues for improving automation and orchestration, expanding support for virtualized network functions in the open RAN and OSS portfolio. It also paves the way for leveraging AIOps in network orchestration, enabling telcos to virtualize and scale their infrastructure, offering new services while reducing operational costs. In a recent development, it has been observed that networking technologies are steadily converging, driven by the increasing demand from customers and end-users for seamless, high-speed, and secure connectivity, regardless of their location.
Last year at MWC, there was an announcement regarding the acquisition of Athonet by HPE, aimed at positioning HPE as a prominent player in private 5G and Wi-Fi solutions. Antonio Neri said, this acquisition has enabled HPE to integrate Athonet’s technology into its portfolio, reinforcing its position as a global leader in private 5G solutions. The incorporation of Athonet’s technology into HPE’s Aruba Networking portfolio, and potentially with Juniper in the future, is expected to yield significant advancements.
This integration is anticipated to make the deployment and management of Wi-Fi and private 5G networks together, through a unified interface, a standard practice. Antonio Neri mentions, HPE’s strategic vision involves playing a pivotal role in empowering telecommunications companies to excel in the upcoming 6G era and beyond. This entails a future where all spectrum is managed seamlessly, leveraging a variety of technologies to maintain quality of service for critical operations.
In recent years, the prevailing belief has been that 5G’s true advantages lie in its potential for business applications rather than consumer use. Despite this notion, few instances have materialized to support this claim. Edge computing services, which were once heralded as lucrative new revenue streams for telecommunications operators via the 5G network, have failed to produce a “killer application.” However, the landscape may be shifting with the rise of artificial intelligence (AI) as a potential game-changer.
AI is poised to become the most demanding application in terms of computing and network resources in this era. Antonio Neri mentions, this development could finally allow telecom operators to capitalize on their 5G investments. Many of the proposed business cases for edge AI inference require a dedicated network and significant computing power to process data closest to the end user or device efficiently. This approach is preferred over sending all data back to the cloud due to economic reasons and concerns over latency.
Telecom operators, given their extensive network infrastructure, are well-positioned to offer a more competitive solution compared to large cloud providers. Companies like HPE and Juniper, with their unique portfolios, are primed to capitalize on this opportunity. They offer a range of services, including a complete data center stack for AI inference and training, innovative AIOps technology, and a variety of hybrid cloud services, which could be a game-changer in the market. The enthusiasm surrounding AI is palpable, with many seeing it as a technology shift unlike any other.
Companies like HPE and Juniper are making bold moves to position themselves at the forefront of this market transition in networking. While attending the Mobile World Congress (MWC), discussions surrounding the potential outcomes of HPE’s proposed acquisition of Juniper Networks have been engaging. However, it’s essential to note that this acquisition is not expected to finalize for several months. During this interim period, both companies will continue to operate independently, each pursuing its distinct strategies to support telco customers.
The current technological landscape is undergoing significant changes, emphasizing the need for telco operators to align with reliable partners who can guide them through these transformations and drive business growth. Antonio Neri mentioned that HPE is poised to emerge as a new frontrunner in networking, boasting an unparalleled range of AI-native and cloud-native solutions. These offerings are anticipated to position HPE as a key player in helping customers leverage the impending market shift driven by AI.
