As we enter the next era of digitization, we are amidst a silent revolution that will change the location from where we process data as well as the speed in which we do that—the reasons being Edge Computing and 5G. The term edge refers to the edge of a network, i.e., close to the data/information source and edge computing means processing data close to the source. Edge computing is giving rise to a new wave of data centers that are smaller in terms of footprint and located close to the source. The aim of this research is to neatly lay out the impact of edge as well as 5G on data centers by gathering expert opinion from industry participant’s and in-house Frost & Sullivan knowledge.
Research Highlights
Frost & Sullivan finds that the edge data center market is forecast to grow at a CAGR of 36.3% from $768 million in 2017 to $3.6 billion in 2022. The need for edge-based data centers arises from three factors, latency, growing data volume and reduction in data processing at large data centers. It is of no surprise to find latency being one of the factors as next-gen applications are becoming extremely latency sensitive. For example, streaming a movie via Netflix or streaming a game via nVIDIA Shield. Both are bound to extreme latency sensitivity. The amount of data being processed at a core data center is likely to reduce as data that requires immediate processing is likely be fed to an edge data center, if present, for processing and then be fed back to the user. A key positive is reduction in latency as well as the volume of data being fed to a large data center. Also, aiding high speed latency will be implementation of 5G, which will enable data transfer speeds of 1 Gb/sec. Our research indicates that edge data centers will complement existing data centers by acting as an additional processing layer located close to the source.
Key Features
- The latest trends in edge computing: The role of micro and prefabricated data centers, connected devices, edge analytics, 5G usage scenarios and Internet of Things
- Overview of major edge computing applications: Internet of Things, Connected Cars, Autonomous Cars, Content Streaming, Mobile Gaming Market
- Edge computing perspectives, drivers and challenges
- Edge market Forecasts with segmentation
- Edge market Participant ecosystem
- Edge data center Strategy from a Cloud, Co-Location and an Enterprise User standpoint
- Edge market participant profiles of vXchnge, EdgeconneX, Interexion, DigitalRealty, IBM Cloud, and Amazon Web Services
Key Findings
Understanding Edge Computing
Need for Edge Computing
Forms of Edge Computing—Multi-access Edge Computing (MAEC)
Forms of Edge Computing—Cloudlets
Forms of Edge Computing—Fog Computing
Understanding 5G
5G—Meeting the Needs of the Modern World
5G—Key Advantages for Consumers and Operators
Research Scope
Key Questions this Research will Answer
Edge Computing Trends
From Macro to Micro Build—Suited for the Edge
Connected Devices to Grow at an Exponential Rate
Performing Analytics at the Edge
Network Speeds of 1Gb/sec—5G
Evolving IoT Ecosystem
Edge is Expected to Witness Tremendous Growth
Overview of Edge Computing Applications—IoT: 1
Overview of Edge Computing Applications—IoT: 2
Overview of Edge Applications—Connected Cars
Overview of Edge Applications—Connected Cars (continued)
Autonomous Cars
Content Streaming
Mobile Gaming Market
Case Study—nVIDIA SHIELD
Edge Perspectives
Drivers of Edge Data Centers
Next-Gen High Latency Applications
Edge-based End-User Applications
Geographic Proximity
Ease of Access
Restraints Faced by Edge Data Centers
Restraints Faced by Edge Data Centers (continued)
Revenue Forecast—Total Edge Data Center Market
Percent Revenue Forecast Split—Total Edge Data Center Market
Revenue Forecast Split—Total Edge Data Center Market
Revenue Forecast—Small Segment (Up to 250kW) Edge Data Center Market
Revenue Forecast—Medium Segment (250kW to 1MW) Edge Data Center Market
Revenue Forecast—Large Segment (>1MW) Edge Data Center Market
Revenue Forecast Discussion
Edge Data Center Market Participants
Factors to Consider When Deploying Edge Data Centers
Colocation Provider Strategy
Enterprise Class Provider Strategy
Cloud Provider Strategy
Edge Data Center Strategy—Cooling
Example Case—Liquid Cooling
Example Case—Recirculating Air-based Cooling
Vendor Profile—vXchnge
Vendor Profile—EdgeconneX
Vendor Profile—Interxion
Vendor Profile—Digital Realty
Vendor Profile—IBM Cloud
Vendor Profile—Amazon Web Services
Growth Opportunity 1—Investment/M&A
Growth Opportunity 2—New Capabilities
Growth Opportunity 3—Geographic Expansion
Strategic Imperatives for Success and Growth
Conclusion
Legal Disclaimer
List of Exhibits
List of Exhibits (continued)
List of Exhibits (continued)
The Frost & Sullivan Story
Value Proposition—Future of Your Company & Career
Global Perspective
Industry Convergence
360º Research Perspective
Implementation Excellence
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Research Highlights
Frost & Sullivan finds that the edge data center market is forecast to grow at a CAGR of 36.3% from $768 million in 2017 to $3.6 billion in 2022. The need for edge-based data centers arises from three factors, latency, growing data volume and reduction in data processing at large data centers. It is of no surprise to find latency being one of the factors as next-gen applications are becoming extremely latency sensitive. For example, streaming a movie via Netflix or streaming a game via nVIDIA Shield. Both are bound to extreme latency sensitivity. The amount of data being processed at a core data center is likely to reduce as data that requires immediate processing is likely be fed to an edge data center, if present, for processing and then be fed back to the user. A key positive is reduction in latency as well as the volume of data being fed to a large data center. Also, aiding high speed latency will be implementation of 5G, which will enable data transfer speeds of 1 Gb/sec. Our research indicates that edge data centers will complement existing data centers by acting as an additional processing layer located close to the source.
Key Features
- The latest trends in edge computing: The role of micro and prefabricated data centers, connected devices, edge analytics, 5G usage scenarios and Internet of Things
- Overview of major edge computing applications: Internet of Things, Connected Cars, Autonomous Cars, Content Streaming, Mobile Gaming Market
- Edge computing perspectives, drivers and challenges
- Edge market Forecasts with segmentation
- Edge market Participant ecosystem
- Edge data center Strategy from a Cloud, Co-Location and an Enterprise User standpoint
- Edge market participant profiles of vXchnge, EdgeconneX, Interexion, DigitalRealty, IBM Cloud, and Amazon Web Services
| Deliverable Type | Market Research |
|---|---|
| No Index | No |
| Podcast | No |
| Author | Vasanth Krishnan |
| Industries | Energy |
| WIP Number | ME2B-01-00-00-00 |
| Is Prebook | No |
| GPS Codes | 9AFF-A4,9B00-A4,9B07-C1 |
Global Impact of Edge and 5G Technology on Data Centers, Forecast to 2022
Edge Data Center is Forecast to be a $3.62 Billion Market by 2022, Driven by Latency-focused Next-gen Applications
16-Apr-2019
Global
Market Research