Many remain skeptical of the financial upside of 5G mobility, and on reasonable grounds. Perhaps for that--and other legitimate reasons, Bell Labs Consulting forecasters now talk about 5G+ as the driver of value.
But it might also be possible to argue that 5G and other new technologies are supports for the broader value of edge computing. In other words, edge computing does not make 5G more valuable: it is 5G that creates the new value of edge computing.
Bell Labs Consulting uses 5G+ as an umbrella term for a broad ecosystem of technologies that will unlock the future economic potential of industry.
The emerging technologies include edge computing, private networks, augmented intelligence, automation, sensing and robotics, as well as platform and as-a-service business models that will have a collective impact.
And one might argue that virtually all those developments play a specific role supporting edge computing. 5G networks will allow ultra-low latency, very high bandwidths, high device density and guaranteed performance, either locally or across wide area networks. That might be crucial for process control when edge computing is mandatory.
5G private networks might play roles once occupied by Ethernet cable networks or Wi-Fi, offering the performance advantages of Ethernet with the low cost and flexibility and mobility of Wi-Fi. Local area networks always have connected local area devices and computing resources, and would continue to do in an edge computing environment.
Artificial intelligence--called augmented intelligence by Bell Labs--might be viewed as the mediator between sensors, reported data and process control response. Though AI is far more than "automation," AI is inseparable from automated processes, which often are enabled by edge computing.
The sensing functions make robotics control as well as other process controls possible, at the edge. "As a service" business models also will support edge computing.
In other words, it might be possible to argue that big coming change is edge computing, which 5G enables. It is edge computing that changes capabilities in terms of immediate value for real-time processes.
As a corollary, assessment of the economic value of that complex of technologies produces big numbers, as would be the case if one tried to quantify the impact of value created by all uses of computing or electricity in a modern economy.
But even infrastructure spending can reach lofty levels when looking at the full complex of 5G+ technologies.
Bell Labs Consulting estimates spending of up to $4.5 trillion in 2030 for the 5G+ enablers and about $8 trillion in new economic value in 2030 from the 5G+ complex.
source: Nokia Bell Labs Consulting
Perhaps most significantly, Bell Labs Consulting notes that early 5G+ adopters report the number-one and number-two benefits as being “incremental revenue growth” and the “ability to enter new or adjacent markets.
For those who believe long-term connectivity provider strategy has to be based on movement into new roles in the internet ecosystem and value chain, those are suggestive findings. Indeed, though incremental revenue growth always is important, the enabling of moves into adjacent markets might be the most important.
The caveat might be that it will remain hard to quantify the various contributions of 5G+ capabilities. It might also be argued that 5G is so new that it is likely other parts of the technology complex--such as computing as a service--have been the actual value drivers and enablers, not 5G connectivity as such.
No comments:
Post a Comment