Cloud vendors will take two thirds of edge service revenue, report predicts

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The edge computing opportunity is an enticing one for cloud providers, telecoms operators, as well as enterprises. Yet according to a new market analysis, as much as two thirds of service revenue will fall to the cloud players.

The Edge Computing 2020 report, from analyst firm Mobile Experts, anticipates the global market for edge computing services to grow to approximately $7 billion in 2025. This makes for an interesting comparison with Frost & Sullivan, who assesses the multi-edge access computing (MEC) market – a wider exploration of edge computing and a term also used by Mobile Experts – to hit $7.23bn by 2024.

The report assesses the value of the market and the roles each stakeholder can play. Telcos and ISPs will add value through wholesale aggregation of local compute capacity, as well as offering connectivity at various tiers of service.

Of the primary industries set to be impacted, Mobile Experts sees automotive, industrial, and retail as the key sectors. The company also notes how telcos will also become edge computing customers using cloud platforms to virtualise their networks – a trend which has already been seen with AT&T and Verizon getting on board with Microsoft and Amazon Web Services respectively.

This has ramifications for the wider data centre landscape. “In 2025, we predict that more than half of ‘edge data centres’ will be on-premises, hosted by an enterprise,” said Joe Madden, chief analyst at Mobile Experts. “Another 20-25% will be hosted by the telcos or ISPs.

“Over a decade or more, we expect the maturing market to shift so that public edge cloud takes a more prominent role, so every small business can reap the benefits of automation,” Madden added.

Overall, the company said there will be ‘at least 20 years of strong growth’ for edge computing, with edge servers being ramped up to hundreds of thousands of shipments, and CPU and GPU cores in the millions by 2025.

Photo by Sam Schooler on Unsplash

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