Industry executives and experts share their predictions for 2024.  Read them in this 16th annual VMblog.com series exclusive.

AI, Cloud, and the Evolution of the Communications Industry

From the generative AI awakening to cloud modernization journeys, the tech world is poised to accelerate and evolve at an intense pace in 2024.

As we look ahead, leaders at Amdocs shared predictions of what to expect.

AI will drive the shift to modernizing the cloud

There's no denying that most communications service providers (CSPs) are well into or planning their cloud migration journey - meaning the easy part is behind them.

This upcoming year, CSPs will need to focus on moving mission-critical core systems to the cloud to level up offerings that will support new demands. Steve Ellis, General Manager, of Amdocs Cloud Division, foresees that CSPs will face the most challenging cloud obstacle of all - modernization.

"Digital experiences enabled by emerging technologies including generative AI, mixed-reality (MR), and 5G are causing expectations to evolve and CSPs need to remain innovative amid this shift. Placing investments toward building a path to take core systems to the cloud, will equip CSPs to reap the full benefits of the cloud instead of just dipping in their toes. Cloud modernization will also unlock the potential for enhanced AI-driven solutions, allowing CSPs to create new services and further support the rise in digital expectations."

The AI Awakening: From Hype to Real-World Impact

As productivity, ROI and cost-saving imperatives drive businesses to new heights of efficiency, Niall Norton, General Manager of Amdocs Networks, foresees AI experiencing a resounding resurgence.

"The cacophony of hype is slowly giving way to substantive reality as players across the board seek tangible ways to extract cost savings," said Norton. "The dawn of AI-powered solutions that redefine business operations is on the horizon, promising real-world impacts that go beyond mere buzzwords. Gen-AI offers a promise of making business ‘intent' decisions a technology reality in previously unimagined ways. And it's emerging very, very quickly. In 2024, the tech world stands on the precipice of transformation, ready to embrace the winds of change. These predictions aren't just wisps of speculation; they represent the crystallization of an era defined by unrelenting innovation and progress. Stay vigilant, for the future unfolds before our eyes, and each day brings us closer to a world where technology reshapes reality."

Norton believes change will likely occur in customer engagement roles - better service levels, increased convenience, and more flexibility. But equally, improvements in productivity in back-office functions, spanning procurement, network operations and software lifecycle management are more quietly evolving.

The Unstoppable Ascent of Enterprise Data Analytics

Ana Redondo, Product Strategy Lead, Amdocs Networks has some predictions surrounding satellite technology and network connectivity, suggesting that the chatter around 5G, enhanced Wi-Fi, killer apps, and complex integrations will dominate the discourse.

"The turbulence of teething issues is finally subsiding, and the industry is metamorphosing. Enterprises are shifting their focus from the question of ‘Why do I want this?' to the more profound ‘How do I leverage this?' This shift in mindset is a harbinger of a forthcoming data revolution. The reservoirs of data, flowing from legacy and next-gen operational technology systems, combined with the troves from the Edge and Network, promise a mother lode of insights. When mined skillfully, this data becomes the golden key to elevate enterprise competitiveness to unprecedented heights."

Network-Driven Transformation Becomes Increasingly Necessary

Redondo also mentions, "Beyond the data realm, another dimension of transformation awaits through operational technology systems leveraging the full spectrum of network capabilities via network exposure. Although it's a ground-up journey with initial challenges such as ROI and integrations, the lessons from NaaS, private networks, and Edge/Cloud developments will serve as accelerants. The path to maturity is poised to accelerate, reshaping industries and redefining possibilities."

The Resolution of the Cloud-Edge Conundrum

For Redondo, predictions surrounding the domicile of enterprise data have been a rollercoaster ride, oscillating between the Edge and the Cloud. "The Edge initially gained the upper hand due to latency and security concerns, but the Cloud reasserted itself as latency improved. Cloud costs surged, and hyperscalers harnessed the Edge's potential, causing predictions to swing back towards the Edge. We firmly believe that the Cloud-Edge battle is about to find resolution, akin to the Mobile Core Control/Data plane separation. The Cloud, as the Control Plane, will host a multitude of applications and bulk data, while the Edge transforms into the Data Plane, catering to data primed for AI and Analytics. As this equilibrium settles, hyperscalers will extend Edge capabilities that currently reside in the Cloud. The tantalizing question remains: which Edge will reign supreme?"

As we close out 2023, it will come to no surprise that these areas are expected to expand and grow; but along the way, it will be crucial to keep up with such a competitive landscape to help meet the demands of consumer and industry satisfaction.

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