Connectivity service providers are optimistic about incremental new revenue from internet of things, edge computing and some functions of a 5G network, such as network slicing or virtualization. It is not so clear that enterprise or consumer buyers of 5G services see value in the same way.
Virtualized networks and infrastructure edge computing (multiservice edge computing) are viewed by mobile service provider executives as key to maximizing the value of 5G, a survey by Omdia finds.
Polling mobile service provider, enterprise and infrastructure provider executives, the study found 77 percent of respondents agreeing that NFV was a top investment area to drive 5G value.
Some 73 percent identified MEC as similarly valuable. But there is a big caveat.
Mobile operator executives were the respondents who cited the importance of MEC. Enterprise respondents ranked internet of things, artificial intelligence and big data far higher than mobile edge computing.
Edge computing in general might be viewed as having different value from mobile edge computing, in part because enterprises might prefer to control more of the function. Also, not all edge computing use cases require tight integration with the mobile network or 5G.
And the enterprise deployment driver might well be cost savings on data storage or wide area communication costs, while conveniently enabling use of artificial intelligence to process data locally.
According to a report by Analysys Mason, the majority of organizations across all verticals expect “a 10 percent to 30 percent reduction in costs from using edge computing, with an average expected savings of 10 percent to 20 percent.
To the extent that 5G and edge computing are useful, many potential use cases might be supported by a private 5G network, with on-the-premise computing. To be sure, 5G reduces local loop latency. It does not provide a remedy for latency to and from a remote data center. That suggests the value of on-premises processing of data from sensors, for example, especially when used for industrial process control, for example.
To be sure, connectivity service provider executives often believe the potential value of their services is higher than demonstrated by customers. Connectivity providers often see themselves as trusted or preferred providers; customers do not always share the enthusiasm.
Connectivity providers often believe the value of quality of service features, security or scale will be viewed highly by potential customers. But buyers often do not place the same value on those attributes.
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