Why is the edge important?
The network edge matters for three main reasons – latency, locality and privacy. With the proliferation of connectivity, it makes sense to have certain services deployed as close to the user as possible, because their performance relies on low latency. The physical proximity of edge infrastructure to the user affects the time taken for data to move between that user and the service they want to access. There are also many services in modern scenarios, such as smart cities, which require large volumes of data to be transferred between the user and some form of central computing infrastructure.
The further away that infrastructure is on the network, the more expensive it is to transfer the data there and back and the quicker that CSP profit margins are eroded. As a result, services local to the user at the edge of the network can be cheaper to run than those further away. There are also many scenarios where the data being exchanged between a user and a service has privacy implications. Where restricted data or regulation come into play, working at the edge of the network limits the risk of data being compromised, because it has a lower distance to travel.
These benefits mean CSPs have a significant opportunity, unique to their position in the market. By owning the edge infrastructure, they hold the keys to unlocking these benefits. So, if they expand their proposition beyond connectivity, and start offering business to business (B2B) services direct to customers based at the edge, they could open up lucrative new revenue streams.
These could be infrastructure, or even platform-as-a-service offerings. They could be IoT services that bundle connectivity with management tools for smart devices used in the home or in industry applications. They could be cybersecurity services tailored
for individual customers. Or, they could be media/entertainment streaming services bundled with connectivity to make the experience of accessing high-quality high-bitrate content simpler, cheaper and more reliable.
For example, a service could expose location APIs to the calendar application used by a large enterprise organization. The calendar could then check meetings and provide notifications to users to indicate they may be in the wrong location for the meeting, or simply too far away to get to the meeting location in time. This is a relatively simple example. The true opportunity and potential are considerably larger.
Imagine a new ride sharing app that deploys and scales its technology. To do this, it needs both a CSP’s connectivity and some subscription-based compute services that allow the application to work effectively. Today, whilst CSPs enjoy revenue from the connectivity, they do not take anything from the compute services on which these companies rely. What if they could?
If CSPs can own access to these compute services, add some differentiation to them by virtue of hosting them on the edge, and build in some bespoke services that can be best provided through their network infrastructure, they would have new avenues for generating revenue.
The potential of edge services to CSPs is varied and significant. This potential applies both for public services, sold direct to individual users on the core network, and for B2B enterprises that want to deploy services to staff and customers on private networks - for example, unified communications to simplify collaborative working environments.
Telecommunication service providers, like Axiata, are well-positioned to provide reliable connectivity to industrial enterprises like manufacturing firms and ports. Their familiarity with achieving 99.999% availability through their highly resilient network, coupled with the advantages of 5G and on-premise edge computing, offers a way for their customers to unlock greater efficiencies in their industrial applications.
Industrial organizations rely on real-time awareness of their production and operational systems to gain greater flexibility. Increasing this flexibility requires more sensors and controls, and this is where edge computing is vital. It allows software-based controls and telemetry collection to be securely hosted "inside" the production and operational systems.
