Edge Investments: Who’s Doing What and Why? · customer is Edge computing Network edge/...

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Edge Investments: Who’s Doing What and Why?

@STLPartners linkedin.com/company/stl-partners

2nd June 2020


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Agenda• Housekeeping & introductions

• Edge computing landscape

• Snapshot of edge investments

• Panel discussion

• Wrap-up


Speakers

Dalia Adib

Edge Computing Practice Lead

STL Partners

Chris Barraclough

Partner

STL Partners

Eli Scher

Vice Chairman / Founder

Open-IX / United IX & New Continuum

Data Centers

Joe Kochan

CEO & Co-founder

US Ignite

Jon Mauck

Managing Director and Head of Data

Center Investments

Digital Colony

PANELIST PANELISTPANELISTPRESENTERMODERATOR


Poll 1: Where is your organisation at in terms of exploring edge computing?

1. Early stage at building an understanding

of edge computing

2. We are formulating a strategy for edge

computing

3. We are planning to make investments in

edge computing

4. We have already made some

investments in edge computing

Early stage at building an understanding of edge computing27%

We are formulating a strategy for edge computing37%

We are planning to make investments in edge computing11%

We have already made some investments in edge computing25%


Edge Investments: Who’s Doing What and Why?Dalia Adib

Practice Lead – Edge Computing

STL Partners

@realdaliaadib

@STLPartners

linkedin.com/dalia-adib

linkedin.com/company/stl-partners

2nd June 2020


The benefits of edge stem from the fact it allows enterprises to deploy applications closer to the end-user/source of data

✓ Low latency

✓ Reduce bandwidth costs

✓ Data security

✓ Increase flexibility & scalability

✓ Reduce vendor lock-in

✓ Reduce cost (and size) of infrastructure

✓ Improve application mobility


Where is the edge? Depends on who you are or who your customer is

Edge computing

Network edge/multi-access edge computing

On-premises edge

Device edge

Location of compute workloads/processing

Edge computing brings processing capabilities closer to the end user/device or the source of data

Enterprise Access PointEnd-

deviceAccess Network

TransportCore

NetworkInternetInternet Exchange

Hyperscale cloud

Regional edge


Where is the edge? Depends on who you are or who your customer is

Edge computing

Network edge/multi-access edge computing

On-premises edge

Device edge

Location of compute workloads/processing

Edge computing brings processing capabilities closer to the end user/device or the source of data

Enterprise Access PointEnd-

deviceAccess Network

TransportCore


Hyperscale cloud

Regional edge


The public cloud providers are increasingly moving towards the edge…

EnterpriseAccess Point

End-device

Access Network

TransportCore


Azure IoT EdgeAzure Private Edge Zones

AWS Wavelength

Azure Edge Zones

CloudFront

IaaSPaaS

IaaSPaaSSaaS

IaaSPaaS


…But they are not the only ones across the value chain trying to capture the edge opportunity

Cloud Infrastructure

Network

Facility

Application/Software

Hardware

Integration & Systems Design & Engineering Systems Integration Professional Services

Real Estate Data Centre Rack Systems Power & Cooling Site Maintenance

Processor ServerEnd-device Hardware Maintenance

Cloud ConnectContent & Application

DeliveryEdge Gateway

PaaS Analytics & APIs Software Application

Operating System IaaSCloud Aggregation &

OrchestrationVirtualisation &

Containers


…But they are not the only ones across the value chain trying to capture the edge opportunity

Cloud Infrastructure

Network

Facility

Application/Software

Hardware

Integration & Systems


Edge Investments: Who’s Doing What and Why?Chris Barraclough

Partner

STL Partners

@STLPartnerslinkedin.com/chris-barraclough

linkedin.com/company/stl-partners

2nd June 2020


There are four pools of capital flowing into edge computing

VC, PE & other

investment firms

Public cloud

providers

(Other) technology companies

Telecoms operators


Edge investments are still small relative to hyperscale cloud and tiny compared to the telecoms industry

$350

$54$2

Telecommunicationsannual capitalinvestments

Hyperscale capitalinvestments (Amazon,Microsoft & Google)**

Edge investments (PE,VC, etc.)*

$ Billions

* largest edge investments recorded in STL Partners Edge Ecosystem Tool 2016-2020

**2019 fiscal year; Source: finbox.com

http://www.stlpartners.com/edge-computing/edge-computing-ecosystem


Over $1bn invested in edge facilities in 2016-2020; cloud infrastructure attracted around $0.5bn

Source: STL Partners Edge Ecosystem Tool


External funding for new facilities is currently dominated by the regional edge

Source: STL Partners Edge Ecosystem Tool


Latency is a competitive weapon for operators and directly impacts customer experience

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

4.5%

0 10 20 30 40 50 60 70 80 90 100

% o

f m

ea

su

rem

en

ts

Latency (ms)

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

4.5%

0 10 20 30 40 50 60 70 80 90%

of

me

as

ure

me

nts

Latency (ms)

End-to-end roundtrip latency November 2018

Source: Teragence, STL Partners analysis

Italy UK


Key question: who invests where and when?

Type of edge Data centre LocationNumbers per

10m populationLatency

Not Edge Hyperscale Major city 1 60+ms

Regional edge Regional Secondary city 100 50ms

Network (mobile)

Core Secondary city 10 40ms

Central office/ branch exchange

Town 150 30ms

Tower Tower Nationwide 3000 10ms

On premises edge

Enterprise site Businesses NA 2-5ms

Customer experience & investment

High

Low


Poll 2: In the next 10 years, where do you think most capital (external funding and company funding) will flow?

1. Regional data centres

2. Network data centres

3. Tower/micro data centres

4. On-prem data centreRegional data centres39%

Network data centres12%

Tower/micro data centres34%

On-prem data centres15%


Speakers

Dalia Adib

Edge Computing Practice Lead

STL Partners

Chris Barraclough

Partner

STL Partners

Eli Scher

Vice Chairman / Founder

Open-IX / United IX & New Continuum

Data Centers

Joe Kochan

CEO & Co-founder

US Ignite

Jon Mauck

Managing Director and Head of Data

Center Investments

Digital Colony

PANELIST PANELISTPANELISTPRESENTERMODERATOR


Thank you!To discuss any of this content in more detail please visit

our Edge Computing hub:

www.stlpartners.com/edge-computing
http://www.stlpartners.com/edge-computing

Edge Investments: Who’s Doing What and Why? · customer is Edge computing Network edge/...

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