How will innovations in 5G technology revolutionize the SaaS industry?
With its high transmission speeds, 5G technology is gaining momentum and taking over businesses. Grand View Research estimates that by 2022, the 5G services market will be worth $664.75 billion. From 2021 to 2028, this will expand at a rate of 46.2% CAGR. In fact, the research team expects 5G to be adopted and used to increase across a wide range of industries, including agriculture, retail and utilities.
Many companies have already started incorporating 5G technology into their infrastructure. Today’s businesses rely heavily on data, so cloud computing is needed to turn data into actionable insights. At this point, the idea of 5G technology is being put into place to provide faster connection speeds, which are expected to be at least 100 times faster than the current 4G.
Healthcare, BFSI, automotive, education, transport and e-commerce are just some of the sectors that will be able to completely change the business landscape, which was previously impossible with 4G. Indeed, it is predicted that by 2022 there will be over 1 billion 5G connections, and by 2025 there will be 2 billion. According to the GSMA, every second and fifth person would have access to a 5G network.
Any tech or non-tech sector would eagerly anticipate the adoption of cloud services and 5G technologies to compete with the leaders in their respective fields. Taking advantage of cloud computing and 5G technology offers countless advantages. Enterprises will be able to benefit from services such as Multi-access Edge Computing (MEC), Mobile Cloud Computing (MCC) and various network architectures with the upcoming release of 5G services.
The introduction of 5G services will accelerate the migration of products and services to the cloud, resulting in the eventual launch of SaaS services.
By focusing on bringing fixed wireless access (FWA) to rural areas, the government will enable the growth of telehealth, diagnostics and home care. True digital integration for the country’s large population will be made possible as digital payment networks continue to thrive and programs like ONDC expand.
When the rollout of 4G first started a few years ago, no one could have predicted the effects it would have on Indian society. India is currently one of the largest consumers of high-quality mobile data due to rapid rollout across the nation and some of the cheapest data prices globally. As a result, broad sectors of entertainment (OTT), banking (fintech and inclusion) and many other use cases have been developed and revolutionized.
Now that 5G is starting to roll out, our nation will likely enter a new paradigm. The increase in internet speed will have a variety of effects on our personal and professional lives. It will change the way services are delivered in the cloud and on our devices and promises speeds up to 20x faster than 4G.
Everyone is vying for a slice of the 5G pie, from device makers who expect to replace 20% to 30% of mobile devices in the next two years to telecom companies whose next phase of growth will be driven by the rollout of 5G services.
The 5G era will accelerate the migration of products and services to the cloud; eventually, services that were previously delivered in a variety of offline ways will start being delivered as SaaS.
Where are we now?
In contrast to the implementations of 3G and 4G, this time telecom companies are not only dependent on international equipment suppliers and are instead creating their own 5G technology. Jio, for example, will use a locally produced 5G core. Reliance and Airtel have both said they are building the next 5G stack nationwide. Reliance is developing a 5G software stack using its R&D team and its US subsidiary Radisys, according to a Business Standard article.
O-RAN or Open-Radio Access Networks are new platforms that have helped Indian telecoms to develop their own 5G technology. For example, Airtel and TCS have partnered to develop an O-RAN-based 5G stack and radio. Tatas bought a stake in Tejas Networks, a company that creates and sells networking hardware, including radios, and Teja’s Networks in turn bought Saankhya Labs, a company that creates 5G software. As a systems integrator, TCS will assemble hardware and software components on an O-RAN platform. Tata will be able to test the proof of concept and Airtel will receive innovative technology, so the Airtel-Tata partnership will likely benefit both parties.
It is a challenging task for other home telecommunication equipment companies to build 5G technology. Last year, the government implemented a PLI program for telecom equipment manufacturers. Even though the 31 companies approved by the scheme have pledged to invest more than Rs 3,000 crore over 4 years, they still have no contract with the carriers for 5G technology and thus cannot receive the subsidies within the PLI until the start of the production.
Few companies that have designed 5G radios, according to RK Bhatnagar, general manager of Voice of Indian Communications Technology Enterprises, have no orders. According to Bhatnagar, local equipment makers should focus on the private networking sector and the growing number of government contracts where the demand for 5G equipment like radios is not as stringent or as great.
NK Goyal, representing India’s Telecommunication Equipment Manufacturers Association, please elaborate. According to prof. NK Goyal, president emeritus of TEMA, “Some companies have actually demonstrated indigenous technology that needs to be challenged.” According to him, private operators have given orders to multinationals due to the imminent rollout of 5G.
For India, achieving full indigenous 5G infrastructure and technology is still a long way off. However, 5G has come a long way compared to 3G or 4G.
Consumer quantum leap and industry 4.0
As more advanced apps and solutions are created, there will be more emphasis on cloud and network infrastructure development. Both the business and consumer sectors will experience service improvements, new delivery designs, and increased efficiencies, particularly focused on video, AR/VR, and IoT.
Investment in these areas has already begun and we are currently collaborating with a number of startups to design engaging customer experiences across the consumer technology sector, including gaming, fashion, retail and healthcare, as well as advances in industrial automation , production and designs.
Organizations across all sectors are starting to invest in transforming their products and are preparing to offer 5G services as soon as they become available. SaaS-based products are being developed more frequently as costs and quality of delivery are balanced, as consumers seek convenience, and the market develops rapidly expandable on-demand offerings.
Government and 5G
In addition to these solutions, with improved connectivity across the nation, we will see a significant shift in how government delivers health and education services in rural areas and other places where network connectivity has previously been lacking. Telehealth, diagnostics and home care will grow thanks to government efforts to bring Fixed Wireless Access (FWA) to rural centres.
The vast majority of people in our country will soon be able to order goods from a vendor in a nearby city as digital payment networks and initiatives like ONDC continue to grow. This is true digital inclusion.
Smart cities and smart homes
For IoT devices to function properly and with low latency, high-quality connectivity is essential, which supports the growth of smart cities. This network, supported by cloud-based services, will serve as the foundation for the growth of smart cities, a major project of governments around the world.
Smart homes and wearable technology will experience unprecedented growth among consumers. Since the communication of the devices with the cloud has almost no latency, they will not need local storage.
Role of telecommunications companies
It’s only a matter of time before telecom companies start hosting and selling such services as they play a significant role in enabling and delivering fast speeds! It will be a very intriguing development if different SaaS solution providers can target their sizable captive consumer base. Edge computing will give devices the tools they need to perform computations locally using distributed clouds, high bandwidth, low latency, data offloading, reliable processing, and secure storage.
In order to produce “future ready” and “future required” solutions, a large influx of R&D is underway and the beginning of a cycle of investment in creating solutions.
Among the emerging situations are:
- Fixed and mobile wireless networks with record speeds
- Accessibility will be available anywhere in the nation, not just Tier 1 cities and corporate networks.
- Developers will create complex solutions and deliver superior user experiences. — education, medical care and entertainment
- Solutions delivered through the cloud
- Telecommunication companies and service providers will sell these solutions to their sizable customer base as well as host them.
When you consider all these possibilities, SaaS is the way of the future and where there is growth, there will be investment.
edited and corrected by Nikita Sharma