New research highlights edge revenue opportunities
09 June 2020 | Melanie Mingas
Mobile and wireline operators have the opportunity to generate new revenue opportunities from edge computing, while saving on costs by combining existing cell tower networks with central offices and aggregation points, such as edge data centres.
However, edge is also expected to open up new areas of competition with network operators comprising a mere third of the ecosystem expected to develop new revenue services (see graphic). Other players will include device manufacturers, application developers and public cloud providers, placing an urgency on adoption for telcos as they look to secure market share.
“Communications service providers (CSPs) believe they see a clear opportunity in the emerging edge computing market, but other potential players including public cloud providers and OTT content players, are equally attracted by the prospect of delivering the edge,” said Julian Bright, senior telecoms analyst, Omdia and author of the research.
“The size of share that service providers can expect to capture in the market for edge computing will depend on several factors. These include how successfully they can evolve their networks to support edge computing paradigms and avoid becoming mere connectivity providers,” Bright added.
The insight was published in Telcos and edge computing: opportunity, threat or distraction?, authored by Vertiv and Omdia, which explored the implications for telcos embracing edge computing for operations.
Acknowledging the role of prefabricated modular data centres (PFM), the report said these will likely help telecoms operators deliver future edge infrastructure – the PFM market is forecast to grow from $1.2 billion in 2018 to $4.3 billion in 2023.
This projected growth is driven by telcos and the growth of edge computing, as well as overall growth by cloud service providers, the report highlighted.
“The growth at the edge opens opportunities for telecom providers to develop new services related to 5G, IoT and other innovative technologies,” said Gary Niederpruem (pictured), chief strategy and development officer of Vertiv.
“Operators will need partners with international reach, as well as a breadth of solutions and services, to support them on their edge journey.”
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