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5G edge computing:
The CSP opportunity
Directions for 2022 and beyond

February 2022
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Executive summary
5G edge is emerging as a powerful way to catapult enterprises to the Geography Industries Firmographics
next level of digital engagement. And its services are enriching and
diversifying the portfolios of Communication Service Providers (CSP).
Americas Turnover
Shifting business models and customer expectations are driving ● US $100M to $10BN+
enterprises to accelerate their digital transformation. Why? Because Brazil
● Employees
enterprises are noticing the need for flexible tools that support agility,
500 to 10,000+
enrich knowledge, and reduce risk across public and private Europe
environments. ● France

But how will CSPs deliver new insights and digital experiences to ● Germany
enterprises and their customers? Google Cloud partnered with Omdia ● UK
on a joint study to understand how enterprises plan to use 5G edge.
Asia
People (466)
Discover new insights examining:
● Australia
● Size, scope and scale of edge investment to date
● Japan Business leaders
● How edge services are expected to create new value
Executive, line of
● Which use cases are live or planned ● Singapore
business
● Barriers to adoption
● Industry snapshots Tech Leaders
IT and operational
● Five key factors to consider for 5G edge success
( ) technology
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Defining 5G edge

Enterprise network Third-party network

Micro (site) edge Site edge 5G, 4G Local hosted edge Regional hosted edge

uCPE
vCPU

Wi-Fi, industrial wireless, private 5G/LTE

Variable latency 5ms 20ms

Fiber, Ethernet

Processing power

Micro (site) edge Site edge Local hosted edge Regional hosted edge

Maps processors or allocates Dedicated servers located Network hosting in a telco Network hosting in a data
containers inside a device not on-site central office, radio base center within 20ms round-trip
dedicated to edge compute station, or cable head-end latency of served sites (ie.,
(e.g., NFV appliance) within 5ms round-trip latency near edge)
of served sites (ie., far edge)
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The 5G edge market is continuing to mature

7 out of 10 enterprises expect to invest

Experimentation and validation
in edge within the next 12 months.

8 out of 10 believe 5G is indispensable To 2021 Recovery and control

to gain edge benefits. Innovation and
2021-2022 disruption
Efficiency gains and improved safety How edge is used
are near term investment drivers while Edge trils explore different 2023+
new customer experience leads long outcomes across industries How edge is used
term ambitions. Edge concepts become Enterprise focus on uses that
familiar to a wide enterprise get their business (and How edge is used
audience network in better shape
Top edge barriers are skills: internal Enterprises build on greater
Attempt to regain lost ground insight and control over their
and lack of expert partners. due to COVID environments to innovate

5G matures to support new

experiences
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Edge is becoming mainstream, fast

Industries are buying into edge Are you using or planning to use edge computing services?

● It’s not a question of who will deploy

edge but when and with whom. 100%

● Almost 70% of enterprises expect to

80%
have deployed a form of edge within
the next 12 months. 25%
27% 60%
17% 19% 22% 38%
● The promised benefits are 40%
compelling.
46% 47% 47% 46% 50%
20%
37%

Healthcare Energy, utilities, Transportation Manufacturing Sports and Retail

mining entertainment

Source: Omdia Google 2021 5G Edge Survey Use today Next 12 months
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Better efficiency and safety are top goals of edge investment

Key outcomes driving investment in Is your organization using or considering the use of edge
analysis of 35+ edge use cases computing to address your greatest challenges?

Efficiency
Help remote / field workers respond
7% Monetization

Compliance 14% Compliance 24% Efficiency

Identify and fix problems faster

Insight
Access to real-time situational data and
intelligence to improve decision making 24% Safety
and response 15% Engagement

16% Insight

Source: Omdia Google 2021 5G Edge Survey

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Enterprise network organizations are leading edge efforts

Edge computing is part of a wider How is edge computing planned in your organization?
transformation

● Almost 50% say edge computing is part Energy and utilities

of a networking / connectivity
Healthcare
transformation initiative
Sports and
● One third say edge computing is part of entertainment

an enterprise-wide digital transformation Transportation

initiative
Manufacturing

● One fifth say edge computing is part of a

Retail
standalone project for a specific line of
business department 0% 20% 40% 60% 80% 100%

Part of an enterprise-wide digital Part of a network A standalone project for a specific

transformative initiative transformative initiative line of business department

Source: Omdia Google 2021 5G Edge Survey

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Enterprises believe 5G and edge are better together

Eight out of ten enterprises Is 5G necessary for you organization to benefit from edge
believe that the availability of computing?
5G is highly important to
benefit from edge computing.
3% Necessary
2% Not at all
necessary

15% Neutral

37% Critical

43% Extremely
necessary

Source: Omdia Google 2021 5G Edge Survey

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Edge investment is gaining momentum across all industries

Manufacturing clearly sees the edge How much do you expect to invest in edge computing
opportunity, but others closely follow hardware, software, managed and professional services
during the initial 24 months of deployment?
● Manufacturing, Healthcare and Retail
firms are anticipating the biggest initial Manufacturing

spends
Healthcare

● 70% of all firms expect to spend $100k or Energy and utilities

more on edge during the first 24 months of
Retail
deployment
Sports & entertainment
● Close to a quarter of all industries are
Transportation
prepared to spend a $1 million or more
0% 20% 40% 60% 80% 100%

<$100k $100k to $499k $500k to $999k $1m+

Source: Omdia Google 2021 5G Edge Survey

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Regardless of size, enterprises are investing in 5G edge

Midmarket enterprises are the sweet How much do you expect to invest in edge computing
spot for 5G edge services hardware, software, managed and professional services
during the initial 24 months of deployment?
● Midmarket enterprises are making
significant edge investments: Two thirds
expect to spend $100k or more in their 5000+ employees

first 24 months

● Large enterprises are heavily investing in 1000 to 4999 employees

edge: One third expect to commit at

least $1 million in the first 2 years of their
500 to 999 employees
edge deployment

● Small enterprises are investing 0% 20% 40% 60% 80% 100%

proportionally in edge
<$100k $100k to $499k $500k to $999k $1m+

Source: Omdia Google 2021 5G Edge Survey

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Enterprise are prioritizing a new era of transformation

Personalization and customer Which of these concepts could be most transformational for your
experience are top priorities organization?

Customers designing their own

● Small deviations occur between products and services 18% 14%

the highest and lowest ranked Seamless health, security, and identity
checks to enter a venue or travel 15% 14%
concepts, indicating that multiple
Customers creating and controlling
11% 14%
drivers could emerge their own viewing experiences
Live, end-to-end visibility of our
global supply chain 11% 13%
● The edge pitch must be nuanced
Anticipating problems / threats
to address immediate concerns as before they happen 12% 11%

well as transformational goals No more queuing to make a

purchase, just pick and go 12% 11%

Using machines that operate and

adapt on their own 11% 9%

Risk analysis and mitigation in

real time 9% 11%

0% 5% 10% 20% 25% 30% 35%

Rank 1 Rank 2

Source: Omdia Google 2021 5G Edge Survey

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Real-time insights from cognitive analytics are driving 5G edge

adoption

Enterprises are ramping investments What is or what do you expect to be the primary function of your
in planned deployments organization’s edge computing applications?

● Business intelligence and automation

15%
deployments will more than double in
the next 12 months
10%
● Surveillance and transactions
cognitive analytics are the most widely
5%
deployed and planned

● Data storage/site mirroring continues to

gain momentum Video/
Cognitive
Inventory
location
HPC Media supply
chain
BI/
Automation
IOT/Data
collection
Video/
Cognitive
Data storage/
backup
analytics for tracking analytics for
surveillance transactions

Deployed Planning to deploy next 12 months

Source: Omdia Google 2021 5G Edge Survey

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Triggers for edge investment vary by industry

Improving safety and efficiency are Is your organization using or considering the use of edge
important issues for many industries computing to address the following issues?

● Motivations to invest in edge are

unique to each industry 35%

● Monetization is not a dominant priority 30%

across any industry 25%

20%

15%

10%

5%

Transportation Sports and Retails Manufacturing Healthcare Energy, utilities,

entertainment mining

Safety Efficiency Insight Compliance Engagement Monetization

Source: Omdia Google 2021 5G Edge Survey

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Skills and security are the biggest concerns with adoption

Vendor lock in ranks lowest, signaling What are the biggest barriers to the uptake of edge computing
broad acceptance of edge computing in your organization?

● Many enterprises say they don’t have

Lack of internal skills about edge
17% 15%
the right skills to deploy edge computing

Cybersecurity and data protection risks 15% 19%

● Enterprises perceive a gap with respect Key technology partner does not
17% 13%
to technology partners’ edge offerings offer edge services

Perceived high or unpredictable costs 11% 14%

● Technology standards are not seen as Lack of compelling use cases
14% 11%
for investment
the top barrier to edge computing
Lack of low-latency networks (e.g., 5G) 12% 12%
adoption
Immature technology standards 9% 8%

Fear of vendor lock in 7% 9%

0% 5% 10% 20% 25% 30% 35%

Rank 1 Rank 2

Source: Omdia Google 2021 5G Edge Survey

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Managed edge services is the desired consumption model

7 out of 10 expect to buy managed edge What type of edge computing deployment are you using/
services considering?

● Some enterprises have heard a few Build once and run anywhere
third-party service pitches
Compute Networking Storage Databases

● Others are seeking them - typically from

Containers Management Third-party
a preferred technology partner AI/ML Data analytics
+ Serverless + Dev Tools services

● Consideration of hosted options is high Google Distributed Cloud

for an early stage market

Google’s Operator Customer Customer

network edge edge edge data center

Source: Omdia Google 2021 5G Edge Survey Managed Service

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Industry
Snapshots
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Industry snapshot: Healthcare

Summary

Status Transformations Investments Infrastructure Suppliers

● 46% use a form of edge ● Most wanted ● Edge is most likely under ● 44% have just 1 edge ● Existing SI partners are
● A further fifth plan to transformations are the network budget; a third enabled site, but 44% preferred for edge but
invest within a year putting customers in say it’s part of digital expect to have 2-4 in 12 many aren’t stepping up
control, seamless entry transformation; less than a months yet; data center / hosting
● Over a third are using or
to venues, and pickup fifth say it’s under a cloud ● 44% say 5G is critical to provider also rated
planning a
of medicines / data budget edge success; 81% say ● Only 8% cite a telco as a
locally-hosted edge
solution ● Challenges are ● 6 out 10 expect to spend a campus network primary edge partner
improving logistics and over $100k on edge; a upgrade is essential ● Cybersecurity, app
driving innovation quarter over a $1m per ● A third are looking at a development and
year private network integration skills are top
ranked for edge partners

Source: Omdia Google 2021 5G Edge Survey

CSP Implications

1 Healthcare is savvy to the transformational 2 Edge is part of wider digital renewal that 3 Healthcare sets a high bar for partners,
benefits of near zero-latency environments depends on robust connectivity – on requiring top-notch security, cloud, app
– both in hospitals and communities. campus and across the wide area. dev, and networking skills.
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Industry snapshot: Energy and utilities

Summary

Status Transformations Investments Infrastructure Suppliers

● 47% use a form of edge ● Most wanted ● A third put edge in the ● A third have just 1 edge ● Existing major SI / IT SP
● A further 1 in 5 plan to transformations are network budget; a fifth enabled site, but 45% or data center providers
invest within a year customers designing under cloud expect to enable 2 to 4 are preferred edge
and controlling ● 58% expect to spend over sites with edge within 12 partners
● More than half are using
services; also end to $100k on edge; a fifth over months ● Only 7% cite a telco
or considering a hosted
end live supply chain a $1m per year ● 8 out of 10 say a
edge solution ● Legacy integration and
visibility campus network app development are top
● Challenges are upgrade is essential to ranked skills to advance
empowering remote use edge edge adoption
workers and leveraging ● 6 out of 10 are looking
data insights better at a private network

Source: Omdia Google 2021 5G Edge Survey

CSP Implications

1 Energy and utilities are key edge targets 2 Safety and security concerns make these 3 Existing partners are sluggish in offering
due to their real time performance and firms cautious – but more about partners edge; those that offer integration, security
data insight needs. than edge since it can improve insight. and app packages will win.
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Industry snapshot: Manufacturing

Summary

Status Transformations Investments Infrastructure Suppliers

● 46% already use a form ● Most wanted ● Edge budget ownership ● 40% have just 1 edge ● Manufacturers prefer to
of edge transformations are varies: some put edge in enabled site, but 61% work with their existing
● A further 25% plan to customers designing the network budget, others will expand, most likely trusted partners, most
invest within a year their own products and within a wider digital to 5 sites or less likely an SI, for edge
experiences transformation budget; a ● Almost 40% believe a ● 15% cite a telco; this is
● While many flavors are
● Top challenges are fifth put it under cloud private 5G network is higher than peers in
used or considered, 42%
are looking at operational efficiency, ● A third expect to spend essential to use edge other industries
locally-hosted edge employee productivity, over $1M on edge per year; ● A campus network ● Integration and app
services safety, and skills 8 out of 10 expect spend to upgrade is in high need development are
exceed $100k annually top-ranked skills for
preferred edge partners

Source: Omdia Google 2021 5G Edge Survey

CSP Implications

1 Manufacturing is sold on edge concepts, 2 Need for tight control and deeper 3 Any partner must have a solid migration
but real benefits can only come with a operational insights means edge is often plan and ability to manage legacy systems
major overhaul of legacy systems. aligned to a private network proposition. out in order to introduce edge.
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Industry snapshot: Sports and entertainment

Summary

Status Transformations Investments Infrastructure Suppliers

● 37% use a form of edge ● Most wanted ● Edge is most likely part of ● 40% have just 1 edge ● 40% think their existing
● More than a third plan to transformations are the digital transformation enabled site, but 80% major SI / IT SP is a key
invest within a year seamless entry to budget expect to expand to edge partner, but many
venues and live ● 7 out 10 expect to spend multiple sites expect to seek new
● 42% are using or
end-to-end visibility of over $100k on edge; ● 60% say a campus partners for edge
planning a
activities almost a fifth over a $1m network upgrade is ● Only 10% cite a telco
locally-hosted edge
solution ● Challenges are per year essential to use edge ● Integration and
improving logistics and ● 40% say 5G is critical implementation are top
operational efficiency for edge success ranked skills to advance
edge adoption

Source: Omdia Google 2021 5G Edge Survey

CSP Implications

1 Potentially big winners in creating new 2 Pitching richer, real-time analytic is a foot in 3 Digital transformation is the wider context
experiences with edge, the immediate the door to these accounts for both internal supporting edge, favoring integrators to
desire is more efficiency and safety. use and to enrich the client experience. deliver on business objectives.
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Industry snapshot: Retail

Summary

Status Transformations Investments Infrastructure Suppliers

● 50% use a form of edge ● Most wanted ● Edge is most likely under ● 48% have 2-4 edge ● Cloud or hosting service
● Close to a third plan to transformations are the network budget; a third enabled sites now, but providers are most cited
invest within a year customers creating say it’s part of digital 25% expect to expand preferred edge partners
their own products and transformation; less than a to 10 or more ● Only 11% cite a telco as a
● 50% are using or
services, and seamless fifth say it’s under a cloud ● 70% say a campus primary edge partner
planning a
entry to locations budget network upgrade is
locally-hosted edge ● Integration and
solution ● Top challenges are ● 6 out 10 expect to spend essential to use edge implementation skills are
operational efficiency, over $100k on edge; a ● 40% say 5G is critical highly requested for
employee productivity, quarter over a $1m per for edge success edge partners
skills, and safety year

Source: Omdia Google 2021 5G Edge Survey

CSP Implications

1 Insight on internal operations is a bigger 2 Edge must deliver on efficiency benefits first 3 Many existing partners don’t offer edge –
driver for edge than creating new to justify investment, notably around supply an opportunity to transform an industry in
customer engagement in the short term. chain performance. transition post COVID.
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What does this

mean for CSPs
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The recipe for 5G edge success

Proposition Targeting Technology Partnership Experience

Satisfy immediate, One size does not fit all - Be prepared to support Build an innovation Be sure to provide an
pragmatic needs understand investment all flavors of edge - just as ecosystem that can help elegant, unified platform
(eg., safety and efficiency), triggers for enterprise enterprises demand. you adapt and play to manage enterprises’
but prepare to satisfy stakeholders. different roles as needed. hybrid edge deployments.
experiential aspirations Don’t fixate on 5G.
(eg., enabling new customer Develop nuanced Public and private cellular Don’t ignore the Demonstrate scalability,
experiences). propositions for different are superior for many importance of professional flexibility, and pervasive
industries. deployments, but edge services expertise security across
Expect to make edge part can also thrive with other (eg., integration, migration, environments.
of a portfolio sale – it is not Don’t ignore the midmarket choices, such as fiber. and design skills) in the
a standalone proposition. enterprise need for edge early stages - they can Offer open APIs and
services, it’s not just a large help you secure recurring analytic support tools
A successful portfolio enterprise opportunity. revenue for edge services. that integrate with
should blend edge apps, enterprises’ own systems.
compute, and network.
Expect to offer cognitive
analytics, IoT, and private
network options in the wrap.
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How Google Cloud can help

Partnering with CSPs to rapidly enable

a global 5G edge presence

Google Distributed Cloud Edge brings Scale and Presence Time to Market
Google Cloud’s infrastructure and Google’s Global Edge Network Agility in Deployment
services closer to your enterprise
customers, empowering CSPs to deliver
new experiences with 5G and edge and
powering network transformation.

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