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An increased use in robotics and autonomous-guided vehicles, both on the ground and in the air.ДЄll these will demand new locations for computing.New, more capable consumer gadgets and new forms of entertainment and experiences.All types of Internet of Things (IoT) applications that enterprises and governments will deploy or that consumers will consume.Transformation of operations technology (OT), such as machine-control systems and so on, to information technology (IT).There are new announcements almost weekly of deals and edge computing technology partnerships between telecom network operators and IT companies such as Microsoft, Amazon, Google, IBM, and others вЂ“ the вЂњhyperscalers.вЂќ These companies all share a common vision: the sheer volume of data will explode, driven by, among other things:

Thus, today is not about significant rollouts, but it very much is about keeping options open.

This means that network operators, when assessing an edge computing engagement today, need to not only consider any potential incremental revenue upside, but also which options to keep open in regards to owning or sourcing compute capacity for their future network function workloads. Substantiating these beliefs and justifying any investment requires: (1) the right strategy, (2) the skill to structure commercial arrangements so that win-win partnerships emerge and coopetition becomes possible, and (3) a sound balance between asset-heavy and asset-light versus risk in a fast-aging tech race.Д«eyond the market-facing case for telecom operators, there is one more consideration: eventually, we expect networking functions and customer workloads to run on a single appliance вЂ“ despite current multi-access edge computing standard designs.

TodayвЂ™s hype is relevant because today is about securing options itвЂ™s not yet about building rollout investments.

Operators can add and capture value from the new computing infrastructure.

There is a need to have compute infrastructure outside the central data center or cloud вЂ“ not in on-premises, self-built environments but somewhere in between.

A few strong believers вЂ“ including players like Verizon, Vodafone, and Telefonica вЂ“ have the rest of the industry wondering: Are they right? Wrong? Too early? Too slow? We believe for the front-runners to be right, a few things need to be believed: In this Report, we consider these questions from the perspective of telecommunications network operators.

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And they are asking some key questions: Where is the value? What to resell and whom to allow to resell own services? How to spread investment and risk? The battle for the edge has begun and lines are being drawn.В All these players are assessing which part of the value chain to focus on: hardware, orchestration solutions, system integration, ecosystem, or system operation. Great opportunities are on the horizon for technology developers (e.g., Intel, Microsoft, AWS), system integrators (e.g., Accenture, IBM), solution providers (e.g., Siemens, Schlumberger), IT providers (i.e., distributors, local integrators, experts), hyperscalers (e.g., Microsoft, Amazon, Google, Oracle), telecom operators, and likely many others. But who will provide the needed compute infrastructure? We can expect that need to grow by a factor of 10 in the next 5-10 years. With the expansion of technology worldwide, it is certain that more compute capacity closer to where the data is created and/or used will be needed.

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