Network operators will play a pivotal role in the creation of new revenue services from edge computing
India [June 5, 2020] Vertiv (NYSE: VRT), a global provider of critical digital infrastructure and continuity solutions, together with technology analyst firm Omdia, released a new report on the implications of the shift to edge computing for telecom operators and the best tactics and strategies for capitalising on edge growth.
The report – Telcos and edge computing: opportunity, threat or distraction? – reveals that growth in edge computing could generate new revenue opportunities for operators. Omdia, formerly Ovum, says specifically that mobile and wireline operators can build a platform for the development of edge services while saving massively on costs by combining existing cell tower networks with central offices and aggregation points such as edge data centres.
“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, 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.”
The Omdia report also reveals that edge growth should open up new areas of competition, with 36% of those surveyed believing that network operators will be most important in the creation of new revenue services from edge. Application developers (30%) and public cloud providers (25%) are also seen as key edge players.
“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 over-the-top (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.”
The Omdia report specifically addresses the role prefabricated modular data centres (PFM) will likely play in helping telecoms operators deliver future edge infrastructure, with the PFM market 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 highlights.
Alongside rapid deployment, energy efficiency is also a key concern for network operators. In a recently published update to a landmark 2019 survey commissioned by Vertiv – 2020: Same Hopes, More Fears – technology analyst firm 451 Research identified that the energy costs associated with edge and 5G connectivity remain a serious concern for operators.
“Energy consumption is a major concern for 5G network owners as it constitutes between 20-40% of network OPEX,” said Brian Partridge, vice president, 451 Research. “Analysis conducted by Vertiv estimates 5G will likely increase total network energy consumption of 150-170% by 2026. The industry desperately needs energy efficient 5G solutions, especially for power-hungry tech like MIMO antennas, and data centre specific countermeasures.”
To address these evolving needs, Vertiv is constantly developing new infrastructure, software and services to optimise energy use across the network together with telco 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 Telefónica, allowing both companies to be shortlisted as finalists for Best Mobile Innovation for Climate Action at the GSMA Global Mobile Awards (GLOMO).
“Edge computing is witnessing tremendous growth in India, opening up a lot of opportunities for the telecom sector. In order to implement the shift to the edge effectively, it’s imperative for network providers to be equipped with reliable and efficient infrastructure. At Vertiv, we have always followed through on our committment to providing quality services and support to all our customers. Edge computing will help telecom providers take the next step towards their growth plans and this extensive report helps provide insight into the opportunities that lie ahead,” said Mr. Dinesh Dhut, senior director, telecom products and solutions, Vertiv India.
If you want to learn more about telecom trends directly from a panel of Vertiv’s global experts, register for the LinkedIn Live event scheduled on June 9 at 6:30 pm IST. For further details on the latest research from Vertiv in the telecom space, visit www.Vertiv.com/Telecom.
About Vertiv
Vertiv (NYSE: VRT) brings together hardware, software, analytics and ongoing services to ensure its customers’ vital applications run continuously, perform optimally and grow with their business needs. As Architects of Continuity™, Vertiv solves the most important challenges facing today’s data centers, communication networks and commercial and industrial facilities with a portfolio of power, cooling and IT infrastructure solutions and services that extends from the cloud to the edge of the network. Headquartered in Columbus, Ohio, USA, Vertiv employs approximately 20,000 people and does business in more than 130 countries. For more information, and for the latest news and content from Vertiv, visit Vertiv.com.
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