The impact of 5G technology on accelerating enterprise cloud adoption

By Caetano Notari

A reality in several countries around the world, 5G technology promises a faster and more economical mobile internet connection, guaranteeing important benefits in areas such as transport and telemedicine, for example. According to Anatel (National Telecommunications Agency), the fifth generation of mobile telephony should soon arrive in Brazil, initially operating in all capitals and in the Federal District, by July 2022. the technology will be present in all cities with more than 30,000 inhabitants by July 2029.

Just as the arrival of 5G is already a reality, cloud adoption has become one of the biggest competitive advantages for organizations. Currently, 81% of companies worldwide have at least one application or part of their computer infrastructure based on the cloud. In this sense, how can the arrival of 5G technology impact the adoption of the cloud in Brazilian companies?

The impact of 5G technology on cloud computing

The additional speed of 5G over 4G will be a major driver for cloud , as all the factors once considered barriers to entry now diminish, making the popularization of cloud services even greater.

Compared to the previous technology, 5G has significant improvements, as each generation advances in communication between devices and networks. In this way, the communication becomes more efficient, since the speed is increased and with that, the latency time is reduced. Therefore, the time taken for the information to go back and forth is much smaller.  

Low latency is essential for the cloud to operate as it should and deliver the benefits it intends. Reduced latency time ensures that companies do not have to wait long to access data stored in the cloud or even to perform operations on cloud-based software . With low latency and more access availability, 5G will make it possible to exchange information almost instantly between systems. In this sense, two internet factors become relevant: speed (for low latency) and availability (for connectivity).

With this, important technological trends, such as the Internet of Things (IoT), virtual reality and augmented reality, will be leveraged, since 5G will promote more quality and efficiency in the exchange of information between different types of devices.

The effects of 5G technology for companies

The use of cloud services was already irreversible and the pandemic only boosted the acceleration of digital transformation in companies of all sizes and segments. In this atypical period, many institutions rethought their work regime and started to adopt a hybrid model, which will benefit from 5G. Environments that use platforms such as Google Workspace or Office 365, for example, will have improved collaborative work, as access to the cloud will be even faster, optimizing the productivity of teams in all sectors of the company.

Important segments of the Brazilian economy will be directly affected by the arrival of this innovation. The agrarian market in Brazil, for example, has an extremely evolved production, as it has state-of-the-art technologies that help define, from the reduction of pesticides, efficiency in the use of fertilizers and the improvement of production. With several applications and systems that need a fast connection, the introduction of 5G can enhance the entire crop production process.

The manufacturing sector, especially with regard to complex goods, demands access to a connection with reduced latency, so 5G will also have a significant impact on optimizing production. The new technology will play an important role even in the daily lives of retail professionals, as card machines will be able to carry out transactions even faster and more efficiently when shopping.

How 5G can become a mass technology

However, it is necessary to massify to reduce the costs involved. The greater the offer of a network, the better and more qualified people will be to carry out their functions. By making technology cheaper, it is possible to deliver more and more quantity and quality of data.

Brazil is ready for the arrival of 5G. In November 2021, an auction was held with connectivity service operators, which raised more than R$ 47 billion, according to Anatel. This auction demanded coverage and deadlines for operators, which will allow the network to be available, in a short time, for those who have this option on their cell phones. It is an important action because, when the technology starts to scale, device prices will drop considerably, which will allow 5G to have an even more relevant impact on companies that are, and those that are yet to enter digital transformation journey .

Caetano Notari is a Product Manager at Skyone , a company specialized in developing platforms that automate and facilitate the use of cloud computing.

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