In India, there is fast-emerging demand for a distributed cloud approach – referred to as Edge Cloud<\/a> – and an opportunity for telecommunication service providers to work with enterprises to monetize it. However, to capture customers and maximize ROI, new approaches to network architecture are needed. Ultimately, service providers will need to build networks that are disaggregated and dense at the edge, to not only evolve from 4G to 5G, but to serve all the latency-sensitive use cases emerging even today.
Starting with where the demand for Edge Cloud<\/a> has originated in India, for years, enterprise IT has adopted and moved critical workloads to the public cloud, due to its operational and management advantages over on-premise infrastructure. This has accelerated recently, according to IDC<\/a>. However, this has also increased the computational and network overheads on cloud locations, creating latency problems.
Additionally, an increasing number of applications depend on real-time latency. The business drivers for these are not only consumer behavior, such as adopting ride-sharing in India, but enterprises improving their operations or monetizing improved customer experiences as well. Emerging use cases in these areas that are bandwidth and low-latency dependent include the following examples:
- In retail, during online and mobile shopping, augmented reality – leveraging Edge Cloud processing – can help shoppers virtually try on clothing or test how a piece of furniture might fit into their home. Such an innovation in customer experience creates a competitive advantage for the retailer, meaning the retailer can pass their Edge Cloud costs onto the end consumer in the form of pricing.<\/li>
- Remote industrial operations such as mining, logging, and oil and gas use Edge Cloud to handle basic asset tracking and analytics functions. This is because remote connectivity to conventional cloud data centers would be too spotty and bandwidth-limited for monitoring and managing their assets. <\/li>
- Manufacturing companies want low latency for rapid real-time robotic automation, and are accordingly implementing Edge Cloud for real-time analytics and robot control. As a result, instead of huge investments to implement automation in a very specific task, a general edge cloud platform will dramatically reduce the effort and customization involved with automation.<\/li><\/ul>
India’s service providers are well positioned to build out and monetize the Edge Clouds for these demands. A strategic requirement for Edge Cloud is the real estate closer to consumers and enterprises, which already exists with service providers’ network point of presence (POP), and attractive beach-front real estate locations that were built out originally to offer 2G and 3G<\/a> services across India. As 4G coverage has proliferated in India, service providers increasingly virtualized their network functions. These locations close to the end user, with virtualized architecture, form a solid starting point for becoming preferred Edge Cloud providers.
However, service providers will not be alone in trying to build out and sell Edge Cloud services. Much like the earlier days of public cloud saw entrants from a selection of industries due to its long-term monetization potential, service providers in India will face competition from hyperscale cloud providers and data center operators.
Therefore, despite their advantages, service providers must make it easy and profitable for other business types to buy from or collaborate instead of compete with them, through both business decisions and network design.
For instance, service providers should leverage Edge Cloud to deploy future telco network functions to make network operation more profitable through cloud-native applications that mean transforming their network to become sliceable, elastic, dynamic & programmable. They can also use the same Edge Cloud to create new service offerings for both consumers and enterprise customers. A single Edge Cloud that fills both these network function and customer needs takes the form of a multi-access edge compute (MEC) cloud.
With MEC, service providers can provide near-real-time cloud computing<\/a> capability closer to the consumer and enterprise, coupled with a strong IT environment at the network edge. This offers a platform to launch consumer and enterprise use cases with access to real-time data, leveraging high bandwidth combined with reduced latency benefits provided by edge clouds. All these benefits combine to solve the centralized cloud deployment challenges seen by enterprises today.
For example, in a Ciena MEC demo at Mobile World Congress 2019<\/a>, we demonstrated how mobile virtual network functions (VNF), virtualized content delivery network (vCDN), public\/private cloud, and purpose-built network function virtualization infrastructure (NFVI) software could be brought together to deliver on-demand automated low-latency video services (such as those in AR\/VR) over a combination of distributed edge and cloud infrastructure.
Converged transport architecture across the telco’s customer spectrum is another key pillar for successful Edge Cloud deployment, reinforcing the need for an end-to-end packet infrastructure, from the access layer through the telco cloud. This provides an underlying xHaul transport network enabling scalable, flexible and reliable application placement with reduced costs. Many of the edge applications could be delivered over 5G – for example, automated manufacturing where manufacturing robots are connected via 5G. Therefore, the same Edge Cloud infrastructure used to deliver 5G could be used to deliver edge applications.
Finally, going back to the competition for Edge Cloud, to prevent encroachment from hyperscalers, service providers should enhance their software development capabilities, offering software compatible with existing multi-access edge and central cloud offerings to ensure optimal processing capability and seamless application migration from private or public clouds to their Edge Clouds.
To summarize, service providers could have an advantage in offering and monetizing Edge Cloud services, as they own existing real estate, networks, and both consumer and enterprise connectivity. However, it is critical for service providers to accelerate the launch of these new use cases with innovative business models, establish early market leadership, and protect and increase wallet share. If they can accomplish all these, they stand to survive and thrive in the battle for the edge.
Download whitepaper at https:\/\/www.ciena.com\/insights\/white-papers\/the-adaptive-network-a-framework-for-understanding-the-networking-implications-of-the-edge-cloud.html<\/a>
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