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© STL Partners | Proprietary and Confidential 1
Telco edge compute: which business models and how to execute themDalia Adib
11 December 2018
@realdaliaadib
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Through our consulting practice, STL Partners has gained a strong understanding of the edge compute landscape
@stlpartners #STLthinks
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There is clearly a big opportunity in edge computing
0
20
40
60
80
100
120
2015 2016 2017 2018
Worldwide edge computing interest over time
Source: Google Trends
@stlpartners #STLthinks
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What is the edge?
CustomerPremises / device
AccessNetwork
CoreNetwork
Centralised Compute
MEC
IoTEdge
EnterpriseEdge
Telco Distributed Computing Domains
MEC, IoT & enterprise edge are all relevant
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Poll 1 –How is your organisation considering edge compute currently?
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Demand for MEC is driven by use cases in the “edge sweet spot”
Edge sweet spot
Local compute-like
Cloud compute-
like
@stlpartners #STLthinks
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The value proposition: MEC for application users delivers more than just latency
Low Latency
Human experiential
M2M critical applications
Noticeable computational slowdown
Reduced Backhaul
Processing at edge
Trickle-back edge ingest
Caching
Data Localisation
Data sovereignty
Security and privacy
Resilience
Scalability
Temporary peak usage (location)
Temporary peak usage (time)
Moveable workload up/down
Light Device
Lightweight device
Reduced device heating up
Improved battery life – compute intensity or time
Legacy devices
Unsuitable environment / human access
MobilityTravelling device
Spin-up anywhere (access)
“Local compute-like” “Cloud-like”
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Different business models for a wide range of applications and use cases available for telcos
Co-lo/ dedicated
edge hosting
Edge IaaS/ PaaS/ NaaS
Systems integration
End-to-end
consumer
application
B2B2x solutions
@stlpartners #STLthinks
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Poll 2 –which use case will benefit most from edge computing?
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Augmented Reality: example applications
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How do AR applications benefit from edge computing?
1. Does not require specialised hardware
2. Reduces latency
3. Reduces bandwidth
4. Does not rely on 5G
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AR: challenges adopting edge
Headsets are not on the cellular
network
Distributed cloud application developer
platforms are nascent
The market is still at an early stage
@stlpartners #STLthinks
© STL Partners | Proprietary and Confidential 13
Thank you
Summary
• Edge cloud is not standalone but part of a wider
distributed cloud
• It is a fast-moving, competitive landscape
• Telcos need to consider which business model is right for
their organisation
• Use cases, like augmented reality, will benefit from edge
computing, but challenges need to be overcome
