Netwok Operators will play a fundamental role in the creation of new services that generate turnover with Edge Computing
Vertiv (NYSE: VRT), a global provider of critical infrastructure solutions, in partnership with the analyst firm Omdia, has published a new report on the implications of the transition to Edge Computing for telephone carriers, also indicating the best tactics and strategies to capitalize on the growth of the Edge.
The report, entitled Telcos and Edge Computing: opportunity, threat or distraction? (Telecommunications and Edge Computing: opportunity, threat or diversion?), reveals that the growth of Edge Computing could generate new revenue opportunities for operators. In particular, Omdia (formerly Ovum) says that mobile and fixed network operators can create a platform for the development of Edge services and at the same time achieve significant cost savings by combining existing mobile networks with centralized offices and aggregation points such as Edge Data Centers.
“The growth of the Edge offers telecommunications providers the opportunity to develop new services related to 5G networks, IoT and other innovative technologies,” said Gary Niederpruem, chief strategy and development officer at Vertiv. “Operators will need partners with international coverage, as well as a broad range of solutions and services, to support them on their journey to the Edge.”
The Omdia report reveals that the growth of the Edge could give rise to new competitors in the market and 36% of survey participants highlighted that network service operators will be instrumental in the development of new profitable services at the Edge. Key figures also include application developers (30%) and public cloud providers (25%).
“Communications Service Providers (CSPs) are confident they can reap benefits from the emerging Edge Computing market, while other potential players, including public cloud providers and media companies offering Over-The-Top (OTT) internet services, are equally attracted by the prospect of providing the Edge,” said Julian Bright, senior telecoms analyst at Omdia and author of the research. "The size of the new market shares that service providers will be able to acquire with Edge Computing will depend on multiple factors. Among these there is certainly the way in which they will be able to develop their networks to support Edge Computing paradigms, avoiding becoming simple providers of connectivity services."
The Omdia report examines in detail the likely role that i will play Prefabricated Modular Data Centers (PFM) in helping telecommunications service providers deliver future edge infrastructure, with the PFM market expected to grow from $1.2 billion in 2018 to $4.3 billion in 2023. The report highlights that this potential growth will be driven by telecommunications and edge computing growth, as well as the overall growth of cloud service providers.
In addition to the extremely rapid implementation phases, network service operators have another concern which is energy efficiency. In a recent survey commissioned by Vertiv in 2019 on energy consumption and entitled 2020: Same Hopes, More Fears (2020: Same Hopes, Greater Fears), 451 Research argues that energy costs associated with Edge connectivity and 5G networks remain a serious issue for operators.
“Power consumption is a top concern for 5G network service providers as it accounts for 20 to 40 percent of network OPEX,” said Brian Partridge, vice president of 451 Research. “Analysis conducted by Vertiv estimates that 5G is likely to boost total network energy consumption by 150-170% by 2026. The industry desperately needs energy-efficient 5G solutions, especially for energy-consuming technologies such as MIMO antennas, and adequate data center countermeasures.”
To respond to these evolving needs, Vertiv is constantly developing new infrastructure, new software and new services to optimize energy use across the entire network together with partners and customers from the telecommunications industry. The company's efforts in this area have been recognized by GSMA via the case study on the project developed by Vertiv with Telefónica which allowed both companies to be included among the finalists of the award Best Mobile Innovation for Climate Action ai GSMA Global Mobile Awards (GLOMO).
To delve deeper into telecom industry trends with a panel of Vertiv's global experts, sign up tolive event scheduled on Linkedin on June 9th at 3:00 pm CET. To learn more about Vertiv's research in the telecommunications industry, visit www.Vertiv.com/Telecom.
