$4,000.00

Existing cloud economics is fundamentally based on maximizing multi-tenancy of compute, whilst minimizing the cost of that compute through operational scale.  Edge Cloud by definition cannot have the same levels of operational scale with many smaller compute capabilities. Edge Cloud as it becomes more localized also has less demand driving multi-tenancy. The added costs of edge cloud need to command a premium for latency and/or communication cost reduction that is not provided by existing public cloud.

In this market outlook, we focus on the underlying economics of edge cloud:

  • Why: reasons and cost model
  • Where: the options and economics of where will edge be deployed
  • Who: the possible players and their business models for edge
  • What: we focus on what is the total opportunity for edge (and avoid the “what are the specific use cases?” – we can’t know)

We outline our definitions and methodology for assessing the edge cloud marketplace. We also look at the key changes that are required to make the successful economic case for edge cloud to be closer to the enterprise or consumer. We believe our approach is unique in focusing on the whole market opportunity for edge cloud, rather than on specific known use cases.

Contents

EXECUTIVE SUMMARY

WHAT IS EDGE CLOUD?

EDGE CLOUD COST COMPARISON MODEL

EDGE CLOUD DEMAND DRIVERS

APPLEDORE EDGE BUSINESS LOCATIONS

EDGE CLOUD APPLICATION TAXONOMY

SUMMARY

ABOUT THE AUTHOR

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Francis Haysom

11-12-2019

22

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