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Home Technology Infrastructure & Platforms Computer, Storage, Networks, Connectivity

Latency-sensitive edge network services drive telco MEC spending

FutureCIO Editors by FutureCIO Editors
October 14, 2021
Photo by Brett Sayles from Pexels: https://www.pexels.com/photo/structured-cabling-system-with-numerous-network-cables-4508748/

Photo by Brett Sayles from Pexels: https://www.pexels.com/photo/structured-cabling-system-with-numerous-network-cables-4508748/

Multi-access edge cloud (MEC) buildouts are being carried out by a broad cross-section of edge stakeholders (e.g., wireless and wireline communications service providers, cable companies, content delivery networks (CDNs), and cloud providers) to deliver latency-sensitive edge network services.

MEC buildouts will also provide opportunities for organizations to host applications both on-premises and in edge cloud sites.

The potential benefits include the ability to meet stringent data traffic policies, enhance security, and improve real-time control and decision making.

The use cases, go-to-market alignments, product development, and move to cloud-native architectures by players in the market — the telcos, the hyperscale players, and carrier infrastructure vendors — remain in development.

IDC believes that the acceleration in the development of the mobile edge cloud ecosystem, cable multiple-system operators (MSOs) investing in edge capabilities, and cloud service providers hosting network edge workloads and partnering with communications service providers to provide MEC solutions for enterprises will drive the majority of carrier MEC investments over the forecast period.

IDC forecasts worldwide revenue for the multi-access edge cloud (MEC), including virtual network functions (VNFs), network functions virtualization infrastructure (NFVI), and cloud-native network functions (CNFs), at the carrier edge cloud across the four market subsegments (mobile edge, wireline edge, cable edge, and CDN edge), will grow from $3.5 billion in 2020 to $16.7 billion in 2025.

Ajeet Das

Ajeet Das, research director, Carrier Network Infrastructure at IDC, says as MEC emerges as a viable option for various enterprise verticals, it is becoming a key driver of new revenue streams beyond connectivity and critical for mobile network operators as they attempt to monetize 5G.

"Although edge investment is mostly related to 5G/MEC today, we expect edge spending to expand in the wireline market as well as cable MSOs, CDNs, and wireline service providers build edge platforms for low-latency, availability, and security for next-generation enterprise applications," he concluded.

Related:  Asian employees want permanent flexible work
Tags: cloud-native network functionscontent delivery networkIDCmulti-access edge cloudmultiple-system operatorsnetwork functions virtualizationvirtual network function
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