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, the publisher focuses 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)