Cloud Computing and Mobile Connectivity are both converging on enterprise applications, and many participants in the market are confused about how these two big ecosystems will come together.†Mobile Experts has just released a new report that†examines five different business models for Edge Computing for enterprise applications, and makes predictions for the likely outcome.
According to Mobile Experts, Edge Computing infrastructure investments are driven from two vectors:
- Operators will be able to offer low latency services to enterprises in industrial automation, as well as key consumer applications such as gaming and AR/VR.
- Cloud service players will be able to support more of the enterprise IT workload if they can move their computing infrastructure closer to the enterprise, either through the public network or with on-premises networks.
“Cloud computing has taken a ‘bite’ out of traditional enterprise networking,” commented Principal Analyst†Kyung Mun. “Now, we see an opportunity for Cloud computing to take another bite, by allowing enterprises to automate more of their processes through better networking. To accomplish this, AWS, Microsoft Azure, and Google will need to move closer to the user for lower latency, and will need to work with network providers like the Telcos.”
The report explores in-depth†the new use cases such as private LTE/5G, cloud gaming, and others that drive investment toward Near Edge ‘micro’ data centers, as well as Far Edge and On-Prem facilities.
Overall, the edge computing server shipments will grow at over 50% CAGR from about 6,000 in 2018 to over 74,000 in 2024, representing over†3M†CPU and GPU cores in 2024. Hardware equipment, software, and services will grow from about†$240 million†in 2018 to just under†$2 billion†in 2024. According to the report, the edge computing trend expands from centralized hyperscale data centers to distributed edge cloud nodes, the CAPEX spend on Near Edge data centers will represent the largest segment.
“Edge computing represents a convergence point for Telco and cloud service providers to enable new enterprise applications with faster and more responsive (5G) network capabilities along with more distributed cloud computing environments.†Evolving market and technology dynamics will create explosive growth in the near term,” remarked Principal Analyst†Kyung Mun.
Subscribers to Mobile Experts research will receive:
- Full access to the 70-page Edge Computing for Enterprises 2019 report;
- 38 detailed charts and figures;
- The detailed Excel file with forecast data through 2024;
- Quarterly market share, shipment, adoption updates;
- Quarterly†Expert INSIGHT†strategic reports;
- Access to the analysts behind the reports.
