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The Edge

SlideshowTelcos Let FAANGs Into the Edge at Their Peril

Would You Let Him In?
To some parts of the telecom industry, FAANG firms have been as bloodsucking as their acronym suggests.
To some parts of the telecom industry, FAANG firms have been as bloodsucking as their acronym suggests.

Duh! 12/9/2019 | 11:13:18 AM
I Dissent The logic behind partnering with webscale providers on edge computing is inexorable. First and foremost, telcos are really, really good at connectivity. That's always been their core business and they have worked out the details to a fare-thee-well. They also have capital equipment, pathways and buildings designed for connectivity. Other businesses... not so much. History is littered with failed attempts by telcos to provide complex applications, ecosystems and platforms. While cultures are changing somewhat, they're still a long way from having organizations that can do so successfully. 

FAANGs+M are really, really, good at webscale services. When they try to be connectivity providers, they fail miserably. Witness Google Fiber. Their cultures and institutional memory simply don't support being in the connectivity business, (other than for between data centers).  Nor do they have that base of capital equipment, pathways and buildings.

If one disabuses themself of the notion that lower layers and upper layers are the same business, the synergy is clear. Telcos really need the webscalers' ecosystems if they're to leverage those resources. Telcos have access to customers and available space in connected buildings.  FAANGs+M need those if they are to offer low-latency services; the alternative is construction of enough buildings and fiber to keep every premise to within a few milliseconds worth of fiber.
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