fbpx Skip to content

Potential vs. Reality: Is Edge Computing Real?

Transformation Infrastructure

By pwsadmin | September 26, 2020

Hybrid IT enables a composable infrastructure which describes a framework whose physical compute, storage, and network fabric resources are treated as services. Resources are logically pooled so that administrators need to physically configure hardware to support a specific software application, which describes the function of a composable architecture. This type of transformative infrastructure is foundational…

Essential Characteristics of Cloud Computing as Digital Transformation

By pwsadmin | September 25, 2020

A survey of 2,000 executives conducted by Cognizant in 2016 identified the top five ways digital transformations generate value:      Accelerating speed to market      Strengthening competitive positioning      Boosting revenue growth      Raising employee productivity      Expanding the ability to acquire, engage, and retain customers   Digital transformation is also a cultural change. Cloud Computing as Digital Transformation Since cloud…

Embrace Transformation

By pwsadmin | September 22, 2020

From a business perspective, differentiating business processes and quality customer service are central to overall success. Business leaders must therefore clearly identify and measure how information technology contributes to the value of every key business process. They must also know how to most cost effectively use IT when the task is merely the management of…

Computer Vision Advances Zero-Defect Manufacturing

By pwsadmin | July 25, 2020

by Kevin L. Jackson Electronics manufacturers operate in a challenging environment. It’s hard enough to keep up with the ever-accelerating rate of change in the industry. Now customers want increasingly specialized product variations in less time and of higher quality. Meeting this demand for increased product variation can seriously impact the bottom line. Such variability increases…

Real-Time Analytics Power the Roadway of the Future

By pwsadmin | July 25, 2020

By Kevin L. Jackson The complexities of citywide traffic are pushing the limits of existing transportation management systems. Outdated infrastructure is based on proprietary, single-purpose subsystems, making it costly to acquire, operate, and maintain. And current roadways are simply not prepared for the future of autonomous vehicles. Enter the SPaT Challenge, an initiative encouraging cities and…

Thriving on the Edge: Developing CSP Edge Computing Strategy

By pwsadmin | March 6, 2020

Communications Service Providers (CSPs) are facing significant business model challenges. Referred to generally as edge computing, the possibilities introduced by the blending of 5G networks and distributed cloud computing technologies are redefining how CSPs operate, partner, and drive revenue. A new Ericsson Digital whitepaper entitled, “Edge computing and deployment strategies for communication service providers,” addresses these challenges…

SourceConnecte! Marketplace With A Mission

By pwsadmin | March 6, 2020

Earlier this year, GC GlobalNet launched a new breed of B2B e-commerce sites. Curated by Kevin L. Jackson, SourceConnecte (with an “e”) went live with three strategic goals in mind: Efficiently leverage modern social media technologies to facilitate value-based interactions between enterprise buyers and vetted suppliers; Establish a protected interactive environment capable of supporting high-value B2B e-commerce negotiations…

Potential vs. Reality: Is Edge Computing Real?

By pwsadmin | January 19, 2020

Edge computing provides compute, storage, and networking resources close to devices generating traffic. Its benefits are based on an ability to provide new services capable of meeting stringent operational requirements by minimizing both data latency and the need for bandwidth. Based on Google trend data, searches for the term has also grown substantially over the…

Enabling Digital Transformation

By pwsadmin | December 22, 2019

Digital transformation integrates technology into all areas of an organization’s business or mission. Its fundamental purpose is to create and deliver innovative and industry-changing products and services to a global customer base. This outcome requires the seamless two-way flow of data and information between internal business processes and external processes that interact with customers, business…

The ThinkShield Story Part 1: The Challenge

By G C Network | October 24, 2019

The cybersecurity challenge seems to be growing daily. Threats are becoming more sophisticated, and attacks are becoming more destructive while the corporate world’s response seems to resemble a deer in headlights. Recent examples of this dangerous state of affairs include[1]: A data breach of a US Customs and Border Protection surveillance contractor that led to…

Edge computing provides compute, storage, and networking resources close to devices generating traffic. Its benefits are based on an ability to provide new services capable of meeting stringent operational requirements by minimizing both data latency and the need for bandwidth. Based on Google trend data, searches for the term has also grown substantially over the past five years.

Recognizing that web searches are not (yet) the arbiter of all things real, it does indicate a rapid growth of interest in the term. Observations of the information technology industry show a similar trend among application developers, particularly those working in manufacturing, gaming, AR/VR, and automotive.  Their work seems focused on the exploration of quite a few significant business opportunities arising from the introduction of edge computing and 5G. Communication service providers are also mimicking the interest by evolving their centralized NFV infrastructure to distributed cloud infrastructure to build out edge clouds handling telecom applications  and third-party applications. 

While all this activity does support the potential of edge computing and 5G, essential questions remain regarding the potential versus the reality of edge computing. This query was the focus of an Ericsson Digital webinar presentation by João Monteiro Soares, Strategic Solution Manager, Distributed Cloud Ericsson and Alan Evans, Senior Director of Innovation Strategy at Edge Gravity.

These two industry experts focused on four key areas:

  • The value of edge computing to 5G networks;
  • Service provider business growth;
  • Industry early adopter use cases; and
  • Profitable service provider business strategies.

Ericsson projects that this segment will draw 25% of a US$14B-US$129B 5G revenue opportunity anchors their edge computing profitability argument.

Realized numbers depend on specific industry solutions and the rate of user adoption. They argued that telecommunications providers are key players in getting the solutions in place through the investment decisions they make today on testing and validation of relevant technologies, concrete business cases, and business model feasibility. Experiments should be executed to determine the:

  • architectural positioning of industry dependent workloads;
  • extendibility of centralized national architectures to regional and local access sites;
  • deployment of NFVI centralized clouds throughout the network and to the edge;
  • pros and cons of centralized services from a distributed cloud; and
  • end-to-end service provider execution environment.

All of these functions require network transformation and a concerted collaboration effort around building broader, industry vertical ecosystems. All of these activities represent significant departures from the traditional telecommunications sales approach based on capital expenditure and acquisition of industry vertical appliances.

Early adopters of edge computing have discovered that the more lucrative path is towards the provisioning of industry vertical tailored on-demand services that are tempered by various maturing technologies and regulatory environments. This future state supports the operational expenditure of funds by telco customers for the consumption of virtual resources. From an infrastructure perspective, the goal should be establishing a virtualized mobile core in a true cloud-native manner. Customization, network slicing, and infrastructure platform services will all combine to enable service providers to deliver solutions across all multiple verticals, leading ones of which include:

  • Gaming and entertainment;
  • AR/VR Mixed Reality;
  • Critical IoT;
  • Smart Manufacturing; and
  • Smart Automotive

To monetize future business models, service providers need to innovate towards the delivery of new services. This journey argues for a platform that is also open to innovation by third parties on top of the foundational network. Service aggregation and revenue sharing are also critical components of these new business models. Telco service provider strategies should encompass both a global industry ecosystem positional view and a local service focus on enhanced regional bandwidth and latency reduction. Technology development remains essential, but it needs to take a back seat to strategic business development activities. This challenging path requires real cultural change that counters the historic technology focus and embraces industry vertical competence and values extended vertical industry ecosystems.

Seventy to eighty percent of the required technology seems to be in place. The remaining technological requirements are determined through industry vertical use case testing across live 5G network environment. I came away from the webinar fully convinced that edge computing is indeed a real opportunity. Revenue and profit realization, however, requires joint development of industry-focused ecosystems by business application developers and telecommunications providers. They must establish joint strategies and specific use case roadmaps today or risk being left behind by their competition. The upcoming SDN World Congress promises to be a crucible for the development and testing of profitable edge computing business models. I can’t wait to find out more about how the most innovative service providers use Ericsson solutions to establish their leadership in this brave new world.

Posted in

pwsadmin

Leave a Comment





Crate

Purchase Crate

Shipping and discount codes are added at checkout.

Checkout
Scroll To Top