Who Should Pay for the Edge Computing Infrastructure We Need?
The data transmission and processing requirements for connected vehicles are set to grow to over 10 exabytes per month in the coming years. Most of the major players in the industry agree about the opportunities that these services represent, and AECC has pointed out that edge computing networks will need to be a large part of the delivery solution. The next issue is, who will pay for it?
AECC teamed up with GSMA Intelligence to look into that very question during the research for a groundbreaking new report entitled “Edge Compute: Coming to a Place Near You.”
The survey found that almost 50% of companies view telco operators as the primary group who should be responsible for investment in edge infrastructure. Interestingly, 68% of operators themselves validated this view. Some of the survey respondents also felt that IoT providers and systems integrators should bear the costs (43%) followed by the equipment vendors (31%).
Edge Compute
Coming to a Place Near You
The survey involved 400 executives from companies across the value chain, including mobile operators, network equipment vendors, cloud service providers, IoT service providers/systems integrators, and car manufacturers.
Collaboration Will Be Essential
Most respondents agreed that mobile network operators should bear most of the costs for distributed infrastructure development, however, their revenue growth is still in the low single digits, while the cost of these investments would exceed net income margins.
The good news is that edge computing will open up new opportunities, including the sharing of costs, revenue and expertise between stakeholders.
Collaboration across all aspects and stages of edge computing deployment will be essential to unlock the opportunities ahead, but opportunities abound, particularly when coupled with other technologies, including 5G, slicing, AI, and private networks.
The development of edge computing promises to echo the development of the first cellular infrastructure networks for telcos. With every iteration of network improvement since 1G debuted in 1979, service quality and therefore user subscriptions alone have increased at an astronomical rate — let alone access fees for service providers. It’s just a matter of time until the new edge infrastructure pays for itself.
Download the Report to Get the Full Story
“Edge Compute: Coming to a Place Near You” contains a wider view of the state of edge today, including an intent to invest in edge computing in 2024.
The majority of surveyed companies expect a rise in capital spending, with a projected 10-15% increase in edge budgets for 2024 compared to 2023. Notably, 12% of these companies plan a more ambitious approach, aiming for a surge of 20% or more.
