The impact of 5G technology on accelerating cloud adoption in businesses

By Caetano Notari

Already a reality in several countries around the world, 5G technology promises faster and more economical mobile internet connections, guaranteeing important benefits in areas such as transportation and telemedicine, for example. According to Anatel (National Telecommunications Agency), the fifth generation of mobile telephony should arrive in Brazil soon, initially operating in all state capitals and the Federal District by July 2022. Furthermore, according to the organization's forecasts, 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 differentiators for organizations. Currently, 81% of companies worldwide have at least one application or part of their computing infrastructure based in the cloud. In this sense, how might the arrival of 5G technology impact cloud adoption in Brazilian companies?

The impact of 5G technology on cloud computing

The additional speed of 5G compared to 4G will be a major driver for cloud , as all factors previously considered barriers to entry are now diminishing, further popularizing cloud services.

Compared to previous technology, 5G offers significant improvements, as each generation brings advancements in communication between devices and networks. This makes communication more efficient, as speed increases and latency is reduced. Therefore, the time it takes for information to travel to and from the network is much shorter. 

Low latency is fundamental for the cloud to operate as it should and deliver its intended benefits. Reduced latency ensures that companies don't have to wait long to access data stored in the cloud or even to perform operations in cloud-based software. With low latency and greater access availability, 5G will enable the exchange of information almost instantaneously 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 enhanced, since 5G will promote greater quality and efficiency in the exchange of information between different types of devices.

The effects of 5G technology on businesses

The use of cloud services was already irreversible, and the pandemic only accelerated the digital transformation in companies of all sizes and sectors. During this atypical period, many institutions rethought their work regime and adopted 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 team productivity in all sectors of the company.

Important segments of the Brazilian economy will be directly impacted by the arrival of this innovation. The agricultural market in Brazil, for example, has an extremely advanced production, as it relies on cutting-edge technologies that help define everything from reducing pesticide use and improving fertilizer efficiency to enhancing production. With diverse applications and systems that require a fast connection, the introduction of 5G could boost the entire crop production process.

The manufacturing sector, particularly regarding complex goods, demands access to low-latency connections; therefore, 5G will also have a significant impact on production optimization. The new technology will even play an important role in the daily lives of retail professionals, as card machines will be able to process transactions even faster and more efficiently at the time of purchase.

How 5G can become a widespread technology

However, mass adoption is necessary to reduce the costs involved. The greater the availability of a network, the better and more capable people will be at performing their duties. By making the technology cheaper, it is possible to deliver increasingly greater quantity and quality of data.

Brazil is ready for the arrival of 5G. In November 2021, an auction was held with connectivity service providers, raising over R$ 47 billion, according to Anatel (Brazil's telecommunications regulatory agency). This auction required coverage and deadlines from the operators, which will allow the network to be available, in a short time, to those who have this option on their cell phones. This is an important action because, as the technology begins to scale up, the prices of devices will drop considerably, allowing 5G to have an even more significant impact on companies that are, and those that will enter, the digital transformation .

Caetano Notari is the Product Manager at Sky.One , a company specializing in the development of platforms that automate and facilitate the use of cloud computing.

Written by Skyone