KX Lays out Plan for Telcos to Cash in on $200Bn Opportunity

“The telecoms sector is at the forefront of digital transformation, and edge computing will be critical in helping operators drive faster outcomes for customers,” said Paul Colgan.

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KX, a global provider of real-time streaming analytics solutions, has released a new report with telecommunications consultancy and analysis group, STL Partners. The report is highlighting the main tactics telecom operators could use to expedite their edge computing go-to-market plan.

The report, titled ‘Why telcos need to capture the edge opportunity now,’ is based on a series of in-depth interviews with telecom operators and enterprises across various regions and markets. It outlines a path for operators to build out edge networks and services that will provide a platform for long-term commercial success while also ensuring short-term revenue generation.

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According to STL Partners, the market for edge computing will be worth $200 billion by 2026. Despite the fact that 49 percent of businesses in industries such as healthcare, manufacturing, retail, and transportation and logistics are already experimenting with edge computing, the report admits that many operators have so far struggled to capture a significant portion of this demand and generate revenue.

With 5G networks in place, however, a lot has been learned about both the technical needs for edge computing and the demand from businesses looking to bring compute and analysis closer to the point where data is created. The research claims that now is the moment for telecom operators to completely commit because the groundwork has been created.

“While 5G has understandably been a priority for operators, edge computing offers a potential source of significant revenue growth,” believes Paul Colgan, SVP and Head of Telco, at KX. “Investment in edge should now be seen as being part of a wider 5G strategy, building the network and platforms that will carry the next generation of services such as low latency real-time analytics, that enterprises are demanding.”

Edge Computing

Photo Dalia Adib, Edge Computing Practice Lead and Director at STL Partners
“We are now at an inflection point for edge computing,” said Dalia Adib, Edge Computing Practice Lead and Director at STL Partners.

The paper published by KX suggests using two techniques when deciding which go-to-market strategy to use. A vertical strategy focused on developing industry-specific solutions linked to established use cases, as well as a horizontal approach focused on connection and computing. Telecom operators should focus on one or the other rather than attempting to be all things to all people, at least for the time being.

“We are now at an inflection point for edge computing,” said Dalia Adib, Edge Computing Practice Lead and Director at STL Partners. “While operators acknowledge monetization has been slow, the market is in a different position and now is an opportune time. Whether through the roll out of vertical use-case specific solutions or the development of horizontal platforms, operators must identify and pursue clearly defined customer segments and use cases if they are to realize the opportunity available to them.”

The report’s fourth significant conclusion is around the value of partnerships and how telecom operators may capture demand and produce money by drawing on the knowledge and expertise of larger ecosystems. Along with prominent application and software suppliers like KX, hyperscale cloud companies are an apparent and significant set of partners.

“The telecoms sector is at the forefront of digital transformation, and edge computing will be critical in helping operators drive faster outcomes for customers,” added Paul Colgan. “But only if they embrace the broader partner ecosystem that is building the services and solutions demanded by companies across all industries.”

KX, the leading technology for real-time data analytics and decision intelligence, is part of FD Technologies. The group of companies operates from 15 offices across Europe, North America and Asia Pacific and counts more than 3,000 employees globally.

As specialists in edge computing and NFV/SDN and virtualization, STL Partners is driving the market in these areas through its Research and Consulting services.

The full report, ‘Why telcos need to capture the edge opportunity now,’ can be downloaded here.

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