Cloud is billed as the future of satcom. While there’s little doubt it has the potential to support operators and integrators to increase efficiency, flexibility, and enable cost-effective scaling, there’s one crucial piece of the puzzle that’s not getting the attention it deserves: the hardware layer. 

It’s all very well saying we need to adopt cloud to modernise the ground segment, to enable hybrid networking, end-to-end orchestration, and new ways of working including as-a-service models. But the thing is, there’s a prerequisite to this kind of transformation happening. Some core ground equipment such as antennas and amplifiers has to stay physical, and these components need to also be modernised. This means moving from having static functions to being configurable, flexible and modular. 

With so much of the current focus centred on the shift to virtualised software-based networks, this critical requirement of the physical layer is often overlooked.  

A Ground Segment Under Pressure

The scale of change in the space segment is well understood. LEO is rapidly expanding and the shift towards multi-orbit and multi-band networks is clear. Operators are rewarded with more choice and end users receive a better experience. Yet all of this brings added complexity and what’s less often acknowledged is where that complexity actually lands.

Ground systems are no longer supporting a stable and relatively simple GEO environment. They’re expected to manage continuous tracking, dynamic handovers, and seamless switching across orbits and frequency bands. What used to be a predictable operating model has become a moving target.

Legacy hardware was never designed for this. Fixed-function systems, built for stability rather than adaptability, struggle in an environment where capacity, performance, and service requirements are constantly changing. That model must now be replaced, by configurable and flexible hardware that can respond in real time.

The challenge is not just in capability, but also is precision. In dense, dynamic networks where satellites and terminals are all in motion, small inefficiencies in RF performance quickly become systemic problems. Interference, handover failures, and performance degradation do not stay isolated, they scale with the network. 

In this new environment, complexities are concentrated in the ground segment. 

Cloud Brings Flexibility — But Also Raises the Bar

The move to the cloud is often framed as a solution to current industry problems. And in some ways, it is. It enables cost effective scaling, reduces reliance on upfront infrastructure investment, and provides access to more advanced service management capabilities. But those benefits only materialise if the underlying foundations can support them.

Cloud-based operations also allow service providers to scale networks more dynamically and introduce new service models such as Ground Segment-as-a-Service, shifting the operational and financial model away from ownership toward consumption.

There’s also a strong argument to say that cloud adoption will make integration between satellite and terrestrial networks more achievable. This of course matters because no single network can deliver continuous connectivity and an uninterrupted service anywhere and everywhere no matter whether users are on the move or stationery. 

As user expectations around connectivity continue to grow, this integration of networks will become essential. In theory, cloud should be able to simplify how networks are interconnected and managed, while also reducing the cost and complexity of achieving this at scale.

But if the physical layer cannot keep up, the benefits of cloud technology are limited.

Virtualisation Has Limits

The ground segment sits at the boundary between RF and digital infrastructure. It is the point where physical signals are translated into something cloud systems can process, manage, and optimise. Virtualisation is a critical step in that evolution, but it is not applicable to every part of the system.

Certain components will remain physical by definition. What’s changing is not the presence of hardware, but the way it operates. No longer fixed-function, ground equipment is shifting to enable configuration, dynamic control and optimisation. Modern transceivers are a good example. They allow operators to optimise RF performance based on actual transmission requirements, dynamically adjusting power levels and receive bands to prevent overload and maintain efficiency. 

But none of this works in isolation. As the interface between RF and cloud environments, ground infrastructure must be highly flexible and interoperable by design. Standards such as OpenBMIP and DIFI are key to making hybrid, multi-vendor ecosystems function reliably.

The Real Challenge: Interoperability and Performance at Scale

In a cloud-enabled network, hardware and software from different providers must work together seamlessly to process and transport digital IF/RF signals. Without standardisation, that model breaks down quickly. Interoperability issues lead to inconsistent performance, increased interference risk, and potentially operational breakdown. 

This is why standardised digital IF and RF interfaces matter. They provide a common framework that allows different components to work together predictably, reducing integration complexity while maintaining performance.

The margin for error is also shrinking. As networks become more dynamic and densely populated, RF performance becomes more critical, not less. In a dynamic environment, interference is also harder to isolate, and its impact is felt across the network.

This puts renewed emphasis on hardware quality and consistency. If the physical layer is not reliable, stable and interoperable, virtualised and cloud components cannot operate as they should.

Cloud Is Not the Absolute Destination

Cloud will play a central role in the future of satcom. That is not in question. What is less well understood is that it is not a standalone solution or final destination. Rather, it is one part of a system that still depends on physical infrastructure performing reliably under increasingly demanding conditions.

Operators and service providers are being pushed to adapt faster, scale more efficiently, and meet higher expectations around performance and availability. Yes, cloud can enable that shift, but it also raises the standard every part of the network must meet. That includes the hardware layer.

The industry is not moving toward a cloud-native, software-defined future in isolation. It’s moving toward a model where hardware and software must operate as a single, coordinated system. One domain cannot compensate for weaknesses in the other. We need to therefore focus much more attention on the physical layer, to enable transition from fixed systems to integrated and adaptable infrastructure.