AT&T's edge computing strategy takes shape with Google, Microsoft

AT&T recently said it plans to build an edge computing network across more than 15 major US cities with Google Cloud over the next few years. The announcement helps to clarify AT&T's emerging story around edge computing, and the operator's desire to work with a variety of cloud computing vendors on the effort.

More broadly, AT&T is joining a range of other technology companies – from cell tower owners to cloud computing providers to telecom network operators – in chasing the edge computing sector. However, the overall space remains in flux – to put it lightly – and the scale of the opportunity remains difficult to define.

AT&T's latest announcement on edge computing with Google highlights the network operator's two different lines of business in the space: AT&T Network Edge (ANE) and AT&T Multi-access Edge Compute (MEC).

A two-pronged approach

Vinay Kundaje, AVP of market development with AT&T Business, told Light Reading recently that AT&T's ANE is best suited "for end user devices that are located across the metro, not location-specific or are nomadic." On its website, AT&T said ANE is available today for private cloud deployments and that the carrier is "now accepting new edge computing use cases for public cloud deployments to be included in our proof-of-concept program." With Google, AT&T is working to deploy ANE in Google's Edge Points of Presence (POPs), ultimately offering the service across 15 major US cities over the next few years. The companies plan to start with Chicago this year, moving then to Atlanta, Dallas, Miami and San Francisco. AT&T has also touted ANE offerings in Dallas and Los Angeles via a previously announced partnership with Microsoft.

AT&T's Kundaje explained that the company's MEC, on the other hand, is "location-specific and would be deployed at large facilities, such as a factory, hospital or campus." Microsoft was AT&T's first MEC partner, and the network operator recently added Google to its roster. AT&T is targeting locations including stadiums, retail outlets and manufacturing facilities with the offering.

Thus, AT&T is pursuing a two-pronged strategy in edge computing that's similar to the one laid out by Verizon. Verizon has separated its edge computing offerings into two buckets: public MEC and private MEC. According to Verizon, public MEC services are "embedded within the cellular network edge" while private MEC offerings provide "computing and storage on-premises." Verizon is offering public MEC services through Amazon Web Services (AWS) and private MEC services through AWS and Microsoft Azure.

Verizon plans to operate 20 public MEC sites around the country by the end of this year. By the end of 2022, Verizon expects to begin recording "meaningful" revenues from MEC, and estimates the total addressable market for edge computing in the US to reach $1 billion.

AT&T so far has declined to provide any revenue figures around its edge computing efforts or ambitions.

Various vendors and services

AT&T's new partnership with Google on its ANE and MEC is noteworthy given the company's recent deal with Microsoft for its core network. In a blockbuster announcement last month, AT&T said it will transition its core 5G network operations into Microsoft's cloud over the next three years.

Interestingly, Microsoft has recently updated its language around its own edge computing strategy. The company early last year announced a plan to build Azure Edge Zones and Azure Private Edge Zones to deliver consistent Azure services to the edge.

However, the company last month said it would "evolve" its Private Edge Zones into a product called "Azure private MEC."

To be clear, AT&T and Verizon aren't the only network operators that offer private and public edge computing locations. For example, T-Mobile recently announced a deal with Lumen Technologies for edge computing services. Lumen counts around two dozen edge computing locations.

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— Mike Dano, Editorial Director, 5G & Mobile Strategies, Light Reading | @mikeddano