One area where it makes sense for operators and cloud providers to work together is in the emerging market of edge computing. Both have advantages to press in an area where the value chains remain very uncertain. The telcos offer a distributed network of locations and connectivity on which an edge network can be overlaid for at least some applications, particularly those based on mobility and public platforms, such as video delivery and gaming. The webscalers have cloud platforms and are established in the enterprise side of the market, which is more focused on on-premises edge nodes and indoor locations. While MNOs are weak indoors, webscalers have relied on a few centralized data centers, not a distributed system.
The synergies seem clear, though there will be a delicate balance to strike between the commercial interests of both sides, which will sometimes conflict. But AT&T has often led the way in terms of how to cooperate with cloud giants, and so avoid being eclipsed by them in an increasingly cloud-based telecoms world. Many of its joint cloud activities have been with AWS, but this month it was talking up an edge cloud test carried out with Microsoft – whose Azure unit, with its strong established base in the enterprise, has perhaps not had to try as hard as AWS to pursue new markets, but which is showing strong interest in the telcos now.
The two companies said they improved network performance by over 50% by deploying Microsoft’s cloud services at the edge of the network. Ofer HaCohen, director of the AT&T Foundry in Israel, said this test alone could make the business case for the telco’s 5G network (the operator has a series of Foundries, labs where it works with partners and developers to test new use cases, and where it has conducted many edge-based trials.)
“It opens up so many opportunities and use cases,” HaCohen said. “From a Foundry perspective, one of our key missions is to create synergy and drive innovation by working very closely with the ecosystem around 5G and edge, and to see how these new, cutting-edge technologies can be leveraged to create business value and benefit to our customers.”
The partners started work earlier this year to test the use of Azure to bring edge computing capabilities into AT&T’s 5G network in order to reduce latency and improve performance by bringing cloud services closer to end users. AT&T set up an edge computing environment in its Cloud Foundry in Plano, Texas and also worked with the Israel Foundry to test the network.
The use case which featured in this trial was drone detection and tracking, working with local drone monitoring start-up Vorpal. Vorpal’s software ran on Azure edge cloud, delivered through the Plano test environment, to track four drones.
HaCohen explained: “The discussion was: what if we can take more compute at the edge of the network with low latency and bandwidth? How can we enhance their business? We saw this vast uplift in performance that they can benefit from, specifically in an area — drone monitoring — where low latency is needed for near real-time monitoring.”
The edge environment saw between 40% and 50% better network performance compared to testing in the public central cloud, and speed tests showed latency levels between 24 and 40 milliseconds, with very low variance, which is just as important for services that require consistent quality of service.
HaCohen said AT&T and Microsoft will continue working with Vorpal and other start-ups to test new use cases for the edge cloud/5G combination. “This is just the tip of the spear,” he said. “There’s so much more that can be done, and the more use cases that we create the more customers can see how they can take advantage of these new technologies.”
In another edge partnership, AT&T has been working with HPE to accelerate enterprise adoption by combining the telco’s connectivity with HPE’s infrastructure.
“AT&T’s software-defined network, including our 5G network, combined with HPE’s intelligent edge infrastructure can give businesses a flexible tool to better analyze data and process low latency, high bandwidth applications,” said Mo Katibeh, CMO of AT&T Business.
Another operator which has been pushing the edge cloud into telco services is Deutsche Telekom, which founded the MobiledgeX organization three years ago to help make edge computing easy to use and access and to accelerate its uptake. Throughout its life, MobiledgeX has been conducting interviews with enterprises – about 200 so far – about their likely applications for edge computing. The surveys found that the most viable use cases in the near term are considered to be multiplayer and cloud gaming, V2X communications, and Industrial IoT.
This assessment was made based on nine market and edge-related factors. The former are market opportunity, venture capital activity, maturity/time-to-market, and network coverage needed.
The edge factors are criticality of latency, volume of data exchange, geospatial knowledge requirements, hyper-local grouping demands and data residency requirements.
Among all the use cases identified, the top 15 also included video surveillance, unstaffed traffic management, and vision and camera-related applications.
Now MobiledgeX is encouraging larger-scale sharing of enterprise experiences and requirements via a new interactive tool called Edge Navigator, and aims to create a “living model” based on its own and third party insights, as well as giving developers access to its code and resources through a new early access program.
Eric Braun, CCO of MobiledgeX, said: “We intend this collaborative endeavor to help the global edge ecosystem contribute to a public knowledge base where resulting data and insights can be debated, enhanced with other market findings, and most importantly, acted upon for a smoother path to edge success.”
However, the sheer number and diversity of use cases identified by such research programs – many specific to one vertical – makes the business case a tough one to make for telcos. Operators are used to building one network to support a huge variety of applications and users fairly generically, but in the enterprise markets which account for much of the edge opportunity, each sector and even each organization will have its own priorities and requirements for the network and the edge cloud.
Operators need to identify and prioritize the edge services they can support effectively in the short term and go after industries with the most immediate needs, says ABI Research. Otherwise, says analyst Don Alusha, they risk being superseded by the cloud giants, and that would “seriously devalue 5G and the future of mobile service providers in general”. Despite the uncertainties, the company forecasts that the penetration of edge servers in telecoms infrastructure could add up to a $54bn opportunity by 2024.
Ericsson aims to help its telco customers scale up quickly to seize a significant portion of that value chain, especially in the most obviously attractive edge market for operators, content delivery. Its Edge Gravity initiative has connected almost 100 content delivery and service provider partners already and expects to grow rapidly round the world. “We are in hyperscale mode right now,” said Kyle Okamoto, Edge Gravity’s CEO. “We are all about executing on the vision of expanding the edge as far and as wide and as deep as we possibly can with the service providers.”
Edge Gravity was launched last year and has signed up operators such as Rogers Communications, KDDI, Telenor, US Cellular, Veon, Optus, Taiwan Mobile, Telstra, Vodafone, Bharti Airtel, SingTel, Telefónica, NTT Docomo, China Unicom, Chunghwa Telecom and Telkom Indonesia.
Like MobiledgeX, Edge Gravity is collecting experiences and carrying out research to ascertain the strongest edge use cases for operators. It has focused, like most telco edge initiatives, on content delivery and VR/AR gaming, but Okamoto expects to expand its efforts quickly into other areas including smart cities, smart grids, fleet services and manufacturing.
Unsurprisingly for an Ericsson division, Edge Gravity has 5G at the heart of its roadmap, believing it to be a key enabler for edge computing. Okamoto said in an interview: “I think about bottlenecks in the supply chain to go from the provider to a consumer. That last mile is typically something that has been an inhibitor in the past. I think 5G will completely eradicate that. It will also allow more distribution, so it will go wider and reach more remote areas.”
He addressed the issue of whether the cloud providers are competitors or partners for telcos in the open environment of the edge, agreeing they would certainly be rivals to operators, but also important to the wider ecosystem. “A customer is not just going to want to put their content and applications on one cloud,” he told LightReading. “Even if that cloud is AWS and they have multiple availability zones, there are still outages. People are realizing that you can’t be single-threaded when it comes to content delivery or with the cloud or the applications, and we can play a part in that.”