Edge Computing Opportunities For Telco Operators

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Vertiv and Omdia present a new study in which they analyze the implications of this new architecture for operators and the tactical improvements and strategies to take advantage of this technology.

Vertiv, together with technology analyst firm Omdia, has published a new report on the implications of the shift to edge computing for telecom operators and the best tactics and strategies to take advantage of the expansion of this new paradigm.

The report, Telecommunications, and edge computing: opportunity, threat, or distraction? , reveals that the growth of edge computing could generate new revenue opportunities for operators. Omdia, formerly Ovum, specifically states that mobile and fixed telephony operators can create a platform for the development of edge computing services while achieving significant cost savings by combining existing telecom tower networks with central offices and aggregation points such as edge data centers.

“The growth of edge computing creates opportunities for telecommunications providers to develop new services related to 5G, the IoT and other innovative technologies,” said Gary Niederpruem, director of strategy and development at Vertiv. Operators will need international partners, as well as a wide range of solutions and services, to support them on their path to edge computing.

The study also reveals that the growth of edge computing should bring with it new areas of competition, as 36% of those surveyed believe that network operators will be the ones with the greatest weight in creating new revenue-generating services in this environment. Application developers (30%) and public cloud providers (25%) are also considered key players in this environment.

“Communications service providers believe they see a clear opportunity in the emerging market for edge computing, but other potential players, including public cloud providers and leading content players, are equally attracted by the prospect of offering services on the market. edge environment” said Julian Bright, senior telecom analyst at Omdia and author of the study. The size of the market share that service providers can expect to capture from this architecture will depend on several factors. Among them is the degree of success with which they can evolve their networks to support the paradigms of edge computing and avoid becoming mere connectivity providers.

The Omdia report specifically addresses the role prefabricated modular data centers are likely to play in helping telecom operators deliver future edge infrastructure, and the market for these centers is projected to grow past $ 1.2 billion. from 2018 to $ 4.3 billion in 2023. According to the report, this projected growth is driven by telecommunications companies and the expansion of edge computing, as well as the overall growth of cloud service providers.

High energy consumption

In addition to rapid deployment, energy efficiency is also a key concern for network operators. In a recently released update on a landmark, 2019 study commissioned by Vertiv ( 2020: Same Hopes, More Fears ), technology analytics company 451 Research concluded that energy costs associated with edge connectivity and 5G continue to be a serious concern for the operators.

“Power consumption is a major concern for 5G network owners, accounting for 20 to 40% of network investment,” confessed Brian Partridge, vice president of 451 Research. Analysis by Vertiv estimates that 5G is likely to increase total grid power consumption by 150-170% by 2026. The industry desperately needs low-power 5G solutions, especially for technologies that more consumers, such as MIMO antennas, in addition to specific measures for data centers.

To meet these changing needs, Vertiv is constantly developing new infrastructures, software, and services to optimize energy use across the network together with telecommunications partners and customers. The company’s efforts in this area have been recognized by the GSMA through a verified case study of Vertiv’s work with Telefonica, which allows both companies to be shortlisted as finalists for Best Mobile Innovation for Climate Action at the GSMA Awards Global Mobile Awards (GLOMO).

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