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#5G Transformation Will Lead To Huge Investment In IT Infrastructure: Report

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#5G Transformation Will Lead To Huge Investment In IT Infrastructure: Report

Beyond the fundamental changes to be made in the networks, the upcoming 5G technology, which is the flavor of this year’s Mobile World Congress, the biggest telecom event on the planet, also involves massive changes in the core network and data center, including the cloud to ensure that the vision of 5G technologies is delivered by the companies.

Thanks to the introduction of 5G technology, the expenses for setting up infrastructure in the IT sector is likely to see a whopping $326 million investment by 2025, as per Moor Insights and Strategy. In fact, this latest development has triggered off a lot of aspirations in various quarters of the market and industry sectors. A school of thought has already expressed its view that the introduction of this new technology is going to transform the way business is conducted.

Technically speaking, the new 5G technology is indeed an innovation and will facilitate some very fundamental changes in the realm of cellular network and device connectivity. The technology will use a new variety of air and radio interface technology for making the most of wireless spectrum utilization.

However, to facilitate this change and introduce the new 5G NR technology, the infrastructure needs a monumental change in the core network and data centers, including the cloud computing technology. In order to facilitate these changes, the IT sector will need an investment of almost $326 billion by the year 2025. The cost involves the expenditure that is needed to process 5G data, storage and networking of the data centers and various carrier network transformation projects and for the introduction of the new 5G modems as well as IPs.

The investment is likely to positively impact a number of IT companies, such as HP Enterprise, Cisco, Lenovo, Dell EMC, Huawei Technologies and IBM Pure, Storage. In the datacenter and edge compute component segments, firms such as Advanced Micro Devices, Broadcom, Intel, NVIDIA, Samsung Electronics, Qualcomm, Xilinx are going to be best placed to reap the benefits of this IT transformation. Modem and IP suppliers like Ericsson, Huawei, Intel, Nokia, Qualcomm, Samsung Electronics also stand to benefit.

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