There is almost no network edge cloud market today beyond CDNs.
Network Edge Cloud is a new developing market with limited real-world deployments beyond certain industry vertical use cases, like Content Delivery Networks. As such it lacks clear definitions of needs and metrics, as well as to large degree being still over-hyped.
To date, much of the focus of edge computing has been on potential use cases and architectures for edge. The thinking has been that by demonstrating use cases and architectures, the case for investment in edge can be demonstrated and proved. Whilst use cases are important, the author believes that they tend to obscure the fundamental economic rationale of edge. They also presume that we can predict the future.
Existing cloud economics is fundamentally based on maximizing multi-tenancy of compute, whilst minimizing the cost of that compute through operational scale. Network Edge Cloud, by definition, cannot have the same levels of operational scale with many smaller compute capabilities. Network Edge Cloud, as it becomes more localized, also has less demand driving multi-tenancy. The added costs of network edge cloud need to command a premium for latency and/or communication cost reduction that is not provided by existing public cloud.
In this forecast, the report outlines the definitions and methodology for assessing the network edge cloud marketplace. It also looks at the key changes that are required to make the successful economic case for network edge cloud to be closer to the enterprise or consumer. It believes the approach is unique in focusing on the whole market opportunity for edge cloud, rather than on specific known use cases.
The distribution of computing and data to the edge will happen, it's just a matter of when.
The report believes that the edge cloud marketplace will happen. The winners in this market will be those that proactively invest carefully in creating this market. The losers in this market will be those that wait for compelling use cases or standardization. By providing a market forecast they hope to encourage all players to create a vibrant market at the network edge, with strong ecosystems and partnerships.