Tuesday, December 10, 2019

Telcos Will "Eat Their Own Dogfood" with Edge Computing to Support Their Virtualized Networks

Whether edge computing as a service becomes a significant revenue stream for connectivity providers remains to be seen. The recent announcement of Amazon Web Service Wavelengths restricts the telco role to supplier of rack space, for example.

But telcos will use significant amounts of edge computing to support their own virtualized networks. 

Telecom edge computing refers to computing performed by small data centers located as close to the customer as possible, owned and operated by a telco, and on telco-owned property. One definition might be computing no further than 30 miles from any end user location. 

Metro edge computing might occur more than 30 and up to 100 miles from any end user location. Both those sorts of edge computing, and including computing happening on a user device or on an enterprise campus or inside a building are the other types of edge computing. 

Some have estimated edge computing revenues of perhaps US$21 billion in 2020. This is up more than 100 percent from 2019, and the market is poised to grow more than 50 percent in 2021 as well, some estimate and Deloitte reports. 



Irrespective of any efforts to host or otherwise supply edge computing as a service, telcos and mobile operators are among the biggest current users of edge computing to support their own internal operations. 

“The largest demand for edge computing currently comes from communication network operators as they virtualize their wireline and wireless network infrastructure and accelerate their network upgrades, including 5G,” say the authors of the State of the Edge report

“Most edge investments today are for virtualizing wireline infrastructure, including SD-WAN equipment, core network routing and switching equipment and data gateways,” the report states. 

“Network function virtualization (NFV) and software defined networking (SDN) solutions that underpin next generation technologies like 5G and are being implemented on edge platforms that CNOs are deploying across their networks,” the report says. 

In other words, 5G and similar upgrades to the wireline networks will require edge computing for network virtualization and automation, as well as to enable new services. 

This will drive investment in edge data centers to support their own operations. 

The global power footprint of the edge computing equipment for CNOs is forecast to increase from 231 to 7383 megaWatts between 2019 and 2028. 

In 2019, communications service provider deployments will represent 22 percent of the global edge footprint, declining to perhaps 10 percent of total investment as other third party uses proliferate. 

In 2019, 94 percent of the footprint will be in central office sites, with the remaining six percent in access and aggregation sites. Between 2019 and 2028 the aggregation edge footprint for CNOs is forecast to increase from five to 38 percent of the total footprint. 


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