2021, a good year for 5G and edge infrastructures | News | Infrastructures

The value chain of 5G edge networks It is an opportunity for the industry to generate new revenue and gain visibility in a market that will include data center companies, companies in selected verticals, public cloud and content delivery (CDN) providers. All of these players are investing significantly in edge locations, 5G infrastructure, and the backbones that connect them. So, according to a new report from Abi Research, 5G edge networks will play a key role in unlocking the business potential of new use cases, such as 5G private networks. In fact, the consultancy estimates that the income of 5G private networks grow from $ 1.6 billion in 2021 to $ 65 billion in 2030, with a compound annual growth rate (CAGR) of 60.1%

“With 5G edge networks, personalized business deals will be struck. Consequently, CSPs and manufacturers are looking to establish business models that are governed by different KPIs, both technical and commercial,” he explains. Don Alusha, 5G Core & Edge Networks Senior Analyst at Abi Research. This is in contrast to products that work with particular mass market subscriber business models, specific to each country or region. The deployments of this type of infrastructure will mark the evolution of the business and the integration with vertical industries. To that end, level 1 operators (for example, AT&T, Telefónica, Verizon and Vodafone) and the vendors (eg Ericsson and Nokia) are setting up new enterprise business units.

2021, a good year for 5G and edge infrastructures.

Additionally, large hyperscale operators such as Amazon, Google, and Microsoft are taking a strategic approach with new solutions aimed at unlocking the value of 5G and edge networks. “CSPs have an edge infrastructure that has potential in terms of local computing and low latency connectivity, but they have limited experience in the cloud. Cloud providers are agile and innovative. With the right collaboration agreements, there is no reason why 5G edge computing cannot deliver value for all parties involved. However, nowadays no one can predict where this is going to go, ”says the manager.

However, these networks will have to face barriers that could affect the maturity of the market. Business cases remain a key area in which more work is required from the industry in general. Models for advanced applications will depend on the market appetite for these infrastructures and the desire of companies to modernize their operations. In addition, the technology ecosystem for edge computing is subject to continuous maturity. It will take time to redesign existing hardware and software for highly distributed edge locations, with limited space and resources.

“A good starting point to drive ecosystem maturity is for the industry to recognize that building a 5G edge network is the first step. The second step is to figure out how to better integrate these new technologies into the business processes of companies. It may not be a question of technology, but a question of the degree of effort required to initiate service convergence and a process change that encompasses marketing, sales, product design, etc. This is still a topic of discussion in the industry, “concludes Alusha.

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