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Hyperscaling the Edge: Why Cost Reduction Does Not Matter as Operators Partner With Hyperscalers

  • 2 mths ago

For mobile operators, the edge is a new frontier. And like geographic frontiers such as the American Wild West, the mobile edge is full of both promise and peril. Going at it alone is risky.

That’s why 89% of communications service providers (CSPs) that have launched multi-access edge computing (MEC) solutions, or plan to do so by the end of 2023, and are partnering with hyperscalers, according to a market engagement exerciseof 82 communication service providers. There’s a variety of reasons why, but surprisingly, saving money is not one of them. Only 13% of CSPs respondents say they partner with a hyperscaler to reduce total cost of ownership (TCO).

As Figure 1 shows, ease of deployment is the top reason by a wide margin. “It is even more dominant with the largest carriers that earn $5 billion+ in annual revenue - with 67% selecting it compared to 49% for smaller carriers,” says Heavy Reading Principal Analyst, Jennifer Clark.

Figure 1: The reasons CSPs partner with hyperscalers (Q: Why do you plan to partner with a hyperscaler to deliver your edge computing? Select up to three.)

Besides enabling mobile operators to snap up enterprise customers before slower rivals, speedy rollouts also mean faster time to revenue. That’s a major plus because edge compute, connectivity and related private 5G campus networks are key for driving a return on their enormous 5G investments.

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