The convergence of Information Technology, Telecom Networks and cloud computing, multi-vendor collaboration, and the intersection of multiple technologies presents an unprecedented opportunity for developers to innovate. System integration will be a powerful accelerator of solutions development as most disparate IT resources will be available as a service at the edge.
The watershed event of AT&T’s decision to handover the management and development of its 5G core to Microsoft Azure is telling of the increasing importance of systems integration. The acquisition complements Azure’s plans for its private MEC which provides access to a panoply of independent software vendors, a developer ecosystem and applications services to simplify system integration. Concurrently, AT&T has entered into collaboration agreements with Google Cloud for the development of vertical applications at the edge for retail, manufacturing, transportation and more. For businesses, Google will help implement video analytics for theft prevention, crowd control, and queue prediction.
AT&T is only one among several service providers steering a path toward edge-based solutions development in collaboration with hyperscalers. Verizon also entered into a collaboration agreement with Microsoft for applications development at the edge spanning augmented and virtual reality, computer vision, and digital twins. Precision healthcare, incorporating mixed reality, is one of the major verticals targeted for development.
Systems Integration as a competitive differentiator
Recent data is indicating that the private network specialists with system integration and solutions development capabilities are outperforming those who specialize in commodity connectivity—public networks. The share of communication service providers, as lead partners in the private enterprise networking market, declined sharply by March 2021 to 16 percent compared to 21 percent a year earlier according to research completed by Omdia. The number of 5G projects in the enterprise doubled over the same period. By contrast, private network specialists, grabbed lead partner role in 27% of enterprise 5G projects, up from 7% a year earlier.
Explaining the trend, the first report from Omdia explained in its previous report, “CSPs are still unable to offer tailor-made services in a timely, cost-effective, and scalable manner. Given that Omdia is already seeing signs that the focus of 5G will be on a combination of horizontal and industry-specific applications, CSPs may be bypassed by other ICT suppliers in a 5G world.” IoT data, for example, will drive applications development. According to Boston Consulting Group, 65 percent of the revenue generated from IoT will be from value-added services.
Ukkoverkot, an upcoming Finnish private network specialist challenging incumbent CSPs, had 26 operational private networks in 2020, the highest in the Nordic region, rebranded as Edzcom, as it set on a course to expand worldwide after its acquisition by Cellnex. Edzcom partnered with Signify to provide two-way light-based wireless communications for industrial enterprises that are experiencing congestion and interference in their radio-based wireless communications for applications that require higher reliability.
Ecosystems as drivers of innovation at the edge
The growth of ecosystems will drive innovation as resources converge at the edge. Cloud companies like Google Cloud, in their collaboration with Telcos, contribute by bringing the creativity of their ecosystems that have grown around their platforms. Google’s Anthos for Telecom is bringing 300 applications from its 30 partners to the Google Cloud at the edge.
The partnership between O2 and Microsoft is an example of how the scope of partnerships expand as new applications are developed. O2 will provide a secure private network and Industry 4.0 applications while Microsoft will support it with cloud computing infrastructure. Additionally, Microsoft for Startups will help to develop an ecosystem of startups for applications development.
System Integrators bolster application development
Altran, acquired by Capgemini, is a prominent system integrator in the private network space. It offers its Smart 5G Connectivity Platform combined with Altran ENSCONCE Edge Computing, for cloud-native application development, and Altran 5G Frameworks, a RAN solution, and integrated with silicon and hardware partners. It is collaborating with Ori Industries, a cloud startup, to accelerate private network Industry 4.0 solutions development by integrating MECs across geographies. An application developed at any one MEC can be reproduced to another with or without modifications, all on an open platform.
Deutsche Telecom, through its IT services division, T-Systems, provides packaged system integration services to private networks for industrial campuses. Its AI solution factory has all the required components such as pre-integrated trained AI system and cameras that can be hooked into a client’s IT system. One version of it monitors welding robots with sensors and uses the data to predict the quality of the joints.
Samsung collaborates with GBL Systems, a system integrator specializing in network services for the military. Together, they are developing 5G private network testbeds for the training of military personnel with AR and VR. GBL does prototype creation, technology integration, and aligning the solution with DoD requirements. Through its acquisition of Tele World Solutions, Samsung is also providing 5G end-to-end solution and system integration expertise to telecom operators and enterprises.
Conclusions
Continuous innovation is the inevitable outcome of resources coming together inexpensively as services within private networks at the edge. More will inexorably be integrated into interconnected networks as entrepreneurs find new ways to develop services. The limits will be defined by the ingenuity of system integrators.
