As in other industries, the choice is simple for telcos: evolve or die. With the growth of edge computing, telcos now have the opportunity to transform their businesses and generate new revenue streams.

The journey to edge computing, however, also comes with its own set of challenges. A new report from Omdia (formerly Ovum) warns that “if not approached in the right way [edge computing] could be a distraction for some players and even a threat to others.”

Capitalizing on edge growth

“The growth at the edge opens opportunities for telecom providers to develop new services related to 5G, IoT and other innovative technologies,” Vertiv Chief Strategy and Development Officer Gary Niederpruem said in a press statement.

Edge computing is a decentralized system that brings computing to the source of the data, or very near it.

Here’s what Omdia has to say about edge computing in its report.

“It works by moving the storage, handling, and processing of data out to edge nodes, close to where the data is generated by the application, device, or end user and away from the centralized cloud or core network. These edge nodes can take the form of micro data centers, network nodes, devices, or sensors.

“Thus, in an application such as a gaming service, users will no longer rely on connecting directly to the core data center processing the game, which brings higher latency the further away from the data center they are. Instead, by connecting locally to the edge network, all users will experience the same, ultra-low level of latency.”

Mobile and wireline operators can build a platform for the development of edge services while saving massively on costs. How? By combining existing cell tower networks with central offices and aggregation points such as edge data centers.

Avoiding pitfalls

Telcos, however, will face competition in the edge computing market. These include public cloud providers, over-the-top content players, and software-as-a-service vendors.

Also, the energy costs associated with edge and 5G connectivity remain a serious concern for operators. Technology analyst firm 451 Research identified these in an update to a landmark 2019 survey that Vertiv commissioned.

To address this, Vertiv is constantly developing new infrastructure, software, and services to optimize energy use across the network.

“Operators will need partners with international reach, as well as a breadth of solutions and services, to support them on their edge journey,” Niederpruem said.