Vertiv releases new report on edge opportunity for telecom operators

tony stoddard DgZxBnZeQo8 unsplashVertiv, a power management and IT solutions provider, and technology analyst firm Omdia have 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? – has revealed that growth in edge computing could generate new revenue opportunities for operators.

Omdia, formerly Ovum, specifically said that mobile and wireline operators could build a platform for edge services development, while saving massively on costs by combining existing cell tower networks with central offices and aggregation points such as edge data centres.

Gary Niederpruem, chief strategy and development officer of Vertiv, said, “The growth at the edge opens opportunities for telecom providers to develop new services related to 5G, IoT and other innovative technologies. Operators will need partners with international reach and a breadth of solutions and services, to support them on their edge journey.”

The Omdia report also revealed that edge growth should open up new areas of competition, with 36 per cent of those surveyed believe network operators will be most important in creating new revenue services from edge. Application developers (30 per cent) and public cloud providers (25 per cent) are also seen as key edge players.

Julian Bright, senior telecoms analyst, Omdia and author of the research, said, “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.

“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 addresses the role prefabricated modular data centres (PFM) will likely play in helping telecom operators deliver future edge infrastructure, with the PFM market forecast to grow from US$1.2bn in 2018 to US$4.3bn in 2023. This projected growth is driven by telecoms 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 major concern for network operators. In a 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.

Brian Partridge, vice-president, 451 Research, commented, “Energy consumption is a major concern for 5G network owners as it constitutes between 20-40 per cent of network OPEX.

“Analysis conducted by Vertiv estimates 5G will likely increase the total network energy consumption of 150-170 per cent by 2026. The industry desperately needs energy efficient 5G solutions, especially for power-hungry tech like MIMO antennas, and data centre specific countermeasures.”

twn Are you sure that you want to switch to desktop version?