TECH SUPPLIER Jun 2020 - Market Perspective - Doc # AP45982320

Telco Edge Business Model and Strategies

By: Bill RojasAdjunct Research Director, IDC Asia/Pacific, Hugh UjhazyVice President, IoT and Telecommunications

Abstract

Edge computing gives enterprises and industries a new option for where to run their workloads, depending on their specific latency, bandwidth, and data sovereignty requirements. If the workloads are designed to take advantage of the new connectivity service types that 5G enables (ultra-reliable low-latency communications [URLLC], enhanced Mobile Broadband [eMBB], and massive machine-type communications [mMTC] services), then the telco edge will need to provide a full virtualized infrastructure to integrate with the 5G Core. "The telco edge business model will adopt elements of cloud services (infrastructure, platform, software as a service [IaaS, PaaS, SaaS]) and traditional wholesale telecom services," says Bill Rojas, adjunct research director, IDC Asia/Pacific. He adds, "Cloud service technologies and delivery and management know-how reside in cloud computing companies, and this known-how will need to be transferred to communications SPs via collaboration and joint operations with cloud computing companies."


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