Cloud-Edge and 5G Set to Propel Post-COVID-19 Value Creation

London, United Kingdom - 25 Jun 2020

More than ever, cloud compute and intelligence platforms should be as close to the source of data at the outer ‘edges’ as possible. The importance of cloud-edges is further highlighted in their relationship with 5G, which forms a symbiotic association with cloud-edge as a technological evolution of the cloud. Cloud-edge implementations promise new growth for the telecom industry. Revenue from cloud-edge AI chipset sales is set to grow from US$2.6 billion in 2020 to US$12 billion in 2025, at a compound annual growth rate (CAGR) of 36%, finds global tech market advisory firm ABI Research.

The synthesis of cloud-edge and 5G presents an opportunity for communications service providers (CSPs) to provide complete end to end solutions for enterprise verticals. For example, with their robust connectivity and 5G assets, the likes of AT&T, Telefonica, Verizon, and Vodafone could move up the value chain to service enablement layer for IoT, analytics, and other horizontal capabilities. “A combination of cloud-edge compute and 5G ultra-reliable low latency connectivity is going to be the bedrock to propel post-COVID-19 growth. This growth is not just for telecoms, but also for a multitude of asset-heavy industries as they embrace digital-first processes and operations,” says Don Alusha, Senior Analyst at ABI Research.

At present, there is no “right” business model for cloud-edge deployments. A key strategy for vendors like MobiledgeX, Ericsson, and Nokia is to target their products at the circumstances in which enterprises find themselves, rather than to enterprises themselves. In other words, the critical unit of analysis must be existing operations and associated commercial circumstances, not the customer. There is a mass of enterprise requirements that must be satisfied with cloud-edge implementations that do not fit the ‘one-size-fits-all’ profile. The ability to deploy edge-clouds across dispersed sites and supply chains in a uniform fashion is bound to be the defining feature to accelerate edge-cloud diffusion. This is particularly significant in a post-COVID-19 world where local compute, 5G, and fiber will continue to be the foundation for continued innovation and value creation. 

As telecoms look closely at current market dynamics for cloud-edge opportunities, the key is to understand where it stands in terms of existing assets and complementary control points. The market for cloud-edge deployments promises growth, but it is composed of a plethora of players and technologies which must be intimately understood. At present, the industry does not have all the answers but should realize the choke points in the near term to obtain growth in the long run. For example, CSPs need a clear sense of the industry or industries) they currently serve and what additional opportunity falls within the boundary of cloud-edge as they take the lead to rejuvenate the global economy post-COVID-19.

“Lastly, hyper scale providers like Amazon and Microsoft are taking advantage of their lean operations to launch their cloud-edge offering. They have the vision to build capabilities close to the edge, but they do not necessarily have the penetration and distribution of network capabilities that CSPs have. Clearly, there is an opportunity to be addressed by somebody, but the jury is still out on who captures what parts of the emerging cloud-edge and 5G ecosystem,” Alusha concludes.

These findings are from ABI Research’s Cloud-Edge Deployments in 5G Networks application analysis report. This report is part of the company’s 5G Core & Edge Networks research service, which includes research, data, and ABI Insights. Based on extensive primary interviews, Application Analysis reports present in-depth analysis on key market trends and factors for a specific application, which could focus on an individual market or geography.

 

About ABI Research

ABI Research provides strategic guidance to visionaries, delivering actionable intelligence on the transformative technologies that are dramatically reshaping industries, economies, and workforces across the world. ABI Research's global team of analysts publish groundbreaking studies often years ahead of other technology advisory firms, empowering our clients to stay ahead of their markets and their competitors.

ABI Research提供开创性的研究和战略指导,帮助客户了解日新月异的技术。 自1990年以来,我们已与全球数百个领先的技术品牌,尖端公司,具有远见的政府机构以及创新的贸易团体建立了合作关系。 我们帮助客户创造真实的业务成果。

For more information about ABI Research's services, contact us at +1.516.624.2500 in the Americas, +44.203.326.0140 in Europe, +65.6592.0290 in Asia-Pacific or visit www.abiresearch.com.

Contact ABI Research

Media: Interview an Analyst

Media Contacts

Americas: +1.516.624.2542
Europe: +44.(0).203.326.0142
Asia: +65 6950.5670