WWT study finds $17 billion opportunity but little traction for service providers
The rapidly expanding edge computing space represents a $17 billion opportunity for telecom service providers over the next three years, but those companies are being overlooked by enterprises when it comes to deployments, according to a recent study by World Wide Technology.
The Lowdown: The report, titled “The Edge Disconnect,” found that service providers’ deep connectivity expertise and investments in 5G infrastructure are advantages, but that they need to fill gaps in their offerings to become a one-stop shop for enterprises looking to expand to the edge with connectivity, infrastructure, and applications.
The Details: Key findings in the report – done in conjunction with Analysys Mason, a global consulting and research firm – include:
> Options: Only 6% of enterprise decision-makers would choose service providers for their edge implementations. Instead, 41% would primarily opt for a technology company, while 31% would go with a public cloud provider.
> Demand: 59% of the $17 billion opportunity is at the level of user-facing application and service platforms, far more than connectivity-focused roles telecom service providers play. Telecom service providers need to expand what they offer beyond connectivity to capture more of the opportunity.
> Edge drivers: Across multiple industries, the top reasons organizers are embracing the edge are newer or enhanced customer experiences, data security and privacy, and cost efficiencies.
> Data management: Enterprises see the edge as a way of reducing data management costs by up to 20%.
The report can be found here.
The Impact: The edge continues to be a promising opportunity for telecom service providers, cloud service providers, and channel partners. Grand View Research analysts predict that the global market for edge computing will grow 37.4% a year through 2027, when it will grow to $43.4 billion. A key catalyst for that growth will be 5G technology, which promises significantly faster speeds and more bandwidth and capacity than current 4G LTE networks.
Background: WWT is keeping an eye on the edge computing space. The company in February teamed with Dell to create a 5G Center of Excellence to help create technologies with a focus on such areas as the edge, the Internet of Things (IoT), and telco clouds.
The Buzz: “Service providers are under immense pressure to monetize 5G infrastructure investments and create cost-reducing efficiencies,” said Dan Graham, global product leader for edge computing at WWT. “Edge computing provides services as close to the end user or device as possible and is essential to the value proposition of 5G. Next-gen applications, including self-driving vehicles, remote surgery, Industrial Internet of Things (IIoT), will all hinge on the edge.”