Success in Edge Demands Collaboration

In a new Research Note, Appledore analyze the need for collaboration in edge.

Public Cloud firms and FAANG have demonstrated that economies of scale win on the internet – not just driving down costs, but enabling huge R&D and providing a huge marketplace, whether it is for can rides, books, cloud computing or any other good or service.

“Platforms with the most apps win.”  – Grant Lenahan

Telecom networks are platforms.  Platforms with the most apps win – see Windows in the 1990s and Apple iOS today.  Go back further and it was so obvious that the term “network effect” was coined and demonstrates that the value of a network (whether social, wired, or business) is proportional to the number of network connections.

Edge is such a platform

Many potential buyers of edge/MEC will be global, or pan-regional. They will demand access to the broadest possible market.  Moreover, edge is a new market, a new business models, and yes, a new technology too.  So it demands investment to understand and optimize on all those attributes – which takes care talent and scarce money.

Therefore, Collaboration is essential

We believe many factors converge to make collaboration essential if CSPs are to succeed in edge.  Too often players in our business believe they can go-it-alone, and maybe even differentiate themselves. Let’s not differentiate ourselves by failing, while the public cloud players take what ought to be a telecom slam-dunk.  This is how we offer true digital services.

Read our complete research note here.