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September 21, 2022
Heavy Reading calculates that 2.5 quintillion (that is 25 followed by 17 zeros) bytes of data are generated daily. The growth rate of this figure is constantly accelerating due to the increase in the number of devices (e.g., Internet of Things [IoT]), the evolution in data formats (e.g., 4K and 8K video), the move to 5G and the introduction of new applications such as the connected car and ultimately the fully autonomous vehicle (AV). Just so you are prepared, consider this: one AV will generate about 4 terabytes of data each day, according to Intel estimates.
This growth in data and data traffic acts as a major pull factor for edge services. According to Heavy Reading enterprise surveys, the three main drivers of edge computing adoption are as follows:
• Absorb and better leverage increasing volumes of data
• Support data sensitivity and confidentiality
• Support latency-sensitive apps
Edge computing achieves all three of these goals by storing and processing data at the edge of the network, closer to where information is generated and accessed by users. By moving workloads to the edge, service providers and their enterprise customers benefit from greater operational efficiency, faster business decision-making and improved customer service. Small wonder, then, that communications service providers (CSPs) are already well along in introducing edge computing services.
Figure 1: CSPs have already launched edge services - or they are planning to Q: When will your organization launch edge computing services? (n=94 global CSPs)
Source: Heavy Reading, 2022
The global market for enterprise edge services is expected to grow at a five-year CAGR of 20.4%, from $97 billion in 2022 to $214 billion by 2026. This includes edge-focused network, security, storage and computing services, along with related integration, consulting and managed services. Today, hyperscalers, systems integrators, consultants and CSPs are all competing for these edge dollars. CSPs have an opportunity to compete across more segments of the edge market if they can close the gap between the edge solutions they are offering and the totality of what the enterprises need. To successfully deploy edge computing solutions and profit from those deployments, CSPs and their partners
• Must know the enterprise: The CSPs have good vertical expertise when it comes to network requirements. However, they are never going to have (nor should they) a detailed understanding of enterprise workloads, applications and organizational dynamics, which they need in order to accelerate enterprise adoption of managed edge solutions. They should look for this from their partners.
• Need global reach and logistics: Global enterprises need a global solution — one that guarantees local resources and expertise. In order to compete outside of their service area, CSPs need to turn to partners. A partner that can participate in all stages of an edge service deployment, from sales (with an in-country sales force) to application rollout, will be very appealing to enterprises, particularly if the partner has the market presence of a known industry leader.
• Will benefit when edge services are repeatable: CSPs have had a difficult time turning highly individualized edge use cases into repeatable business across an industry vertical. A partner with deep enterprise expertise can be instrumental in providing the software development resources, paired with an understanding of the enterprise use case and business processes. Together with the CSPs, these partners can expose and realize the true market potential of edge computing for the enterprise customer.
With the right partners, CSPs can close the gap that exists today between what enterprises need and what the CSPs are offering. They will be able to present a unique value proposition to their enterprise customers while improving their own competitive positioning and edge ROI.
Follow this link for more insights into productizing edge deployment.
— Jennifer P. Clark, Principal Analyst, Cloud Infrastructure and Edge Computing, Heavy Reading
This blog is sponsored by Dell and Intel.
Principal Analyst – Cloud Infrastructure & Edge Computing
Jennifer Pigg Clark is Principal Analyst with Heavy Reading covering Cloud Infrastructure and Edge Computing. Clark provides actionable insight into service provider evolution, examining the challenges and opportunities facing network operators as they move towards 5G and IoT with an increasingly virtualized and cloud native infrastructure. Clark examines the solutions and technology reshaping the telco data center, technologies such as Edge Computing, Open Source, OpenStack, container networking, Network Orchestration, Software Defined Networks (SDN), Network Functions Virtualization (NFV), and SD-WAN. Clark started her industry research career with the Yankee Group, which was acquired by 451 Research in 2013. She held the role of Sr. Vice President at Yankee Group. Prior to joining Yankee Group, Clark was Manager of Network Planning and Strategy for Wang Laboratories'corporate data network. She began her career at Wang with responsibility for the domestic and international roll-out of Wang's packet network, connecting more than 250 locations in 14 countries. Before joining Wang, she was a member of the IT research and development division of Commercial Union Insurance Companies. Clark is a highly regarded speaker at industry seminars and conferences and is frequently cited by the commercial and trade press. She has been a guest lecturer at the MIT Sloan School of Management and is a member of the IEEE. She holds a B.A. degree from Mount Holyoke College.
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