Summary

Catalyst

There is a widely held view that the full capabilities of 5G can only be realized by using edge computing in some form. In the two years since Ovum last looked at this topic, the case for edge computing seems to have strengthened; the technology is beginning to demonstrate strong potential and clear benefits in terms of network performance (such as reduced latency) and support for multiple 5G use cases. However, work on developing a common industry approach to edge computing remains fragmented, deployment timelines are uncertain, and the best way to build a viable business case based on edge is still unclear. Adapting service providers' networks to support new virtualized, edge cloud architectures assumes a more far-reaching transition than many are ready to undertake at this point, but others may be more ready to take up the challenge. As a result, the extent of the technology's future role and likely commercial benefit in service providers' networks are still unclear.


Ovum view

When Ovum last addressed this topic, we believed that 2018 could be the year when the early hype around edge computing would either prove to be just that – mainly hype but with no sign of practical application – or the technology would begin to demonstrate its viability in service provider networks. We also said that for edge computing to succeed, it would need to be about revenue generation as much as cost reduction.


The fact that this inflection point has still not been reached illustrates the size of the challenge involved in implementing edge computing, and this challenge is not purely about the technology. In fact, many vendors argue that, technically, deploying edge computing is relatively straightforward. The problem rests more with concerns about the business drivers, which in turn are leading to uncertainty about how and where operators should start to deploy their edge cloud infrastructure.


Even though progress has been slow, Ovum is optimistic about the prospects for edge computing as a technology capable of being widely deployed in communications service providers' (CSPs') networks. Indeed, the incentive for edge computing to be deployed in some form in 5G networks appears to be growing, mainly because it remains central to the business case. If service providers are to move beyond offering an enhanced version of 4G and achieve the service-related goals of 5G, particularly in the enterprise sector, edge computing can be expected to play a part.


Also, as CSPs move toward a software-based, cloud network architecture in preparation for 5G, this will help to provide the basis for the development of an edge computing model. Ovum believes that during 2019 the combination of network functions virtualization (NFV) and telco cloud will push CSPs closer to the reality of edge computing, particularly as vendors increasingly support the move from today's virtual machine (VM) model to a cloud-native, container-based reference architecture.


Key findings

  • Progress continues to be made in terms of the technical capabilities and the migration to new cloud architectures that will be the foundation of edge computing, but the business case remains unclear and this is driving indecision about how and where to deploy the technology.
  • 5G is the main driver for edge computing but will not be the only network environment where edge computing is deployed, nor is it proving to be the first.
  • There are still no signs that the industry is coalescing around a single approach to edge computing. Despite efforts to standardize on a single edge computing architecture, industry bodies and CSPs are exploring a range of models that are not necessarily compatible.
  • The edge may turn out not to be a single, defined location such as the base station. Many other factors will influence how and where edge is deployed in the network.
  • Interest in building edge networks is extending into the wider industry, and CSPs will not necessarily be the ones to build, or even own, the edge network.