Intel he rise-of-multi-access-edge-computing-paper

Independent market research and
competitive analysis of next-generation
business and technology solutions for
service providers and vendors
Transforming the Edge:
The Rise of MEC
A Heavy Reading white paper produced for Intel
AUTHOR: JIM HODGES, PRINCIPAL ANALYST, HEAVY READING

© HEAVY READING | INTEL | TRANSFORMING THE EDGE: THE RISE OF MEC 2
INTRODUCTION
There is little debate that the telephony services delivery model has undergone a formative
change in the past two decades. Driven by the initial shift to IP-fueled data services, this
was inevitable. While the precise evolution phases are hard to definitively establish, bench-
marks can be defined and even tied to how we refer to service providers.
For example, along the way we have seen traditional naming conventions, such as telco,
service provider and network operator, supplanted by more progressive names, such as
communications service provider (CoSP) or even digital service provider (DSP). This change
is largely driven by a new virtualized cloud-based service model that is reshaping the indus-
try on every level.
While this innovative communications model is still being defined, the cadence of change
continues to escalate. But even in this change-driven realm, it's clear that the future of
communications will rely heavily on edge computing.
While, conceptually, edge computing is not a new approach, what is new are technologies
like network functions virtualization (NFV) and related distributed cloud radio access net-
work (RAN) architectures, such as 5G, which are enabling delivery of low-latency services
on a level not even considered feasible five years ago.
Given these synergies, the formal concept of edge computing emerged initially in a mobile
context. The focus here was to apply virtualization to the RAN, to reduce costs, support
elastic scale and to "open-up" the RAN. Hence the initial mobile edge computing (MEC)
moniker when standardization commenced in 2014. However, since then the focus has
shifted to leverage highly-scalable edge computing in the enterprise and fixed networks,
which drove a redefinition of MEC to multi-access edge computing.
Adoption of this broader definition has also enabled MEC to achieve strategic imperative
status among progressive CoSPs. Still, given the number of competing technologies, under-
standing MEC from a driver, timeline and even implementation challenges perspective is
important for assessing long-term adoption and sustainability.
Therefore, in the fourth quarter of 2017, Heavy Reading, in conjunction with Intel, under-
took the creation and execution of a global survey designed to assess CoSP perceptions and
commitment to MEC. The key findings from the survey are documented in this white paper.
THE RISE OF MEC
While MEC promises to usher in an era of scalable and open-programmability at the edge,
as with any technology, the true test of longevity beyond the "hype cycle" is the commit-
ment to implement. This was the starting point for our research.
In this regard, as depicted in Figure 1, there is a very strong level of commitment to imple-
ment MEC. In fact, 18% of CoSPs are currently deploying MEC, with 28% planning to deploy
in the next 12 to 18 months, followed by 23% that plan to deploy in an 18- to 24-month
window. This translates into a 69% deployment rate within 24 months. Another strong en-
dorsement is that only 6% of respondents have no plans to deploy MEC.

Figure 1: MEC Deployment Commitment
Question: When does your company plan to start deploying MEC? (N=107)
Source: Heavy Reading: Intel Custom Survey Q417
One reason we believe there is such a strong level of deployment support is that MEC is
technically transformational since it is aligned with and embodies the programmable and
distributed spirit of the cloud. Thus, CoSPs must also accept that openness is a key transfor-
mational tenet of an effective implementation strategy. By so doing, CoSPs can create a
template that can be reused with other complementary edge use cases.
Of these, as depicted in Figure 2, MEC is complementary to use cases such as virtualized
RAN (vRAN), which is leading the way.
Figure 2: MEC as Technical Transformation Change Agent
Question: To what extent do each of the following statements align with your company's
network transformation strategy? (N=105-107)
18%
28%
23%
25%
6%
We are deploying now
We will deploy in the next 12 to 18 months
We will deploy in 18 to 24 months
We are still working on our business case
for MEC deployment
We have no plans to deploy MEC
42%
35%
34%
24%
45%
43%
52%
52%
5%
12%
8%
14%
9%
9%
6%
10%
We are committed to deploying an edge
compute architecture such as multi-access edge
computing (MEC) and/or virtualized RAN (vRAN)
We are committed to creating an open
ecosystem to ensure we can adopt a
plug-and-play edge architecture
We are committed to using the latest generation
of cloud solution stacks to ensure we have
access to the compute platforms that meet our
current and future edge compute requirements
We are committed to integrating AI into our
reference edge architecture to minimize
network latency as well as enhance network
performance and security policy enforcement
Directly aligned with our strategy Somewhat aligned with our strategy
Not aligned with our strategy Don't know/Not sure

While 42% of respondents view vRAN as directly aligned with a transformation strategy, in
this emerging edge intertwined world, other use cases and edge capabilities represent key
network transformation components, as well. For example, as illustrated, open ecosystem
(35%) and access to most current platforms (34%) are also directly aligned, which rein-
forces the universal and holistic value proposition of openness at the edge.
It's also important to note that support of artificial intelligence (AI) integration achieved
solid support. As captured in the figure above, 24% of the survey respondents assessed AI
as directly aligned with their network transformation strategies. This is significant in that it
confirms that many CoSPs have made the connection between AI and edge computing and
are focusing on leveraging AI to enhance automated processes and analytics data interpre-
tation necessary to support ultra-low latency application delivery and to alleviate network
congestion in core data centers.
In addition to driving technical transformation, MEC is also a business transformation
change agent. This relationship is captured in Figure 3, based on the percentage of CoSPs
that view MEC as extremely important on several business levels. Of these, two of the four
highest-ranked business factors are service-focused (34% for new service delivery and 23%
for supporting new market verticals). The others in the top four are the opportunity to lev-
erage MEC to reduce opex (25%) and capex (24%).
Closely behind are the opportunity to utilize MEC to foster adoption of open standards and
open third-party vendor integration (both 18%). Based on this input, it's clear that attrib-
utes, such as openness, will play a major role in the execution of both business and tech-
nical edge transformation strategies.
Figure 3: MEC as a Business Transformation Change Agent
Question: Please rate the importance of the following business factors in driving your com-
pany's multi-access edge computing (MEC) deployment strategy. (N=102)
23%
18%
24%
25%
18%
34%
48%
50%
59%
62%
50%
44%
23%
29%
16%
11%
27%
20%
6%
4%
1%
2%
5%
2%
Support new market verticals
(e.g., connected car)
Transform our network from
proprietary closed vendor solutions
to open third-party solutions
Reduce capex
Reduce opex
Drive adoption of open standards
Deliver new services to our customers
Extremely Important Important Only Somewhat Important Not Important

DEPLOYMENT DRIVERS & USE CASES
As noted, MEC's scope has been extended to include multi-access use cases, in effect be-
coming technology-agnostic. In order to gauge importance beyond the mobile realm, we
requested the survey respondents to weigh fixed, mobile and enterprise use cases.
The input depicted in Figure 4 reinforces that the momentum of MEC now extends well be-
yond mobile in part because MEC's low latency application model is crucial for baseline service
capabilities, such as video delivery, which is germane to mobile, fixed and enterprise markets.
For instance, as illustrated, the close grouping of extremely important response levels con-
firms that CoSPs see a broad range of both fixed and mobile high-value use cases. Of these,
the top six are 5G readiness and video content delivery (both 32%), then virtual customer
premises equipment (vCPE) (29%), Internet of Things (IoT) use cases (27%), wireline
home connectivity (23%) and enterprise use cases (22%).
Figure 4: MEC Use Case Drivers
Question: Please rate the importance of the following use cases in driving your company's
MEC deployment strategy. (N=102-107)
This impact of MEC on enterprise use cases must also be noted since the enterprise itself
is undergoing a profound transformation predicated on programmability and third-party
32%
29%
23%
32%
18%
27%
22%
17%
43%
39%
50%
38%
55%
47%
51%
50%
21%
29%
18%
21%
25%
24%
25%
23%
5%
2%
10%
9%
2%
2%
2%
11%
Video content delivery (including
virtual reality/augmented reality video)
vCPE
Wireline home connectivity use
cases (e.g., security monitoring)
5G readiness
Edge security enhancements &
managed services for enterprises
IoT use cases
Enterprise use cases
First responder use cases (e.g.,
drone monitoring, emergency
response, visual inspection)
Extremely important Important Only somewhat important Not important

application integration, driven in large part by the IoT opportunity. Thus, enterprise applica-
tions like the cloud will not be able to thrive, scale and gain the market reach necessary if
they continue to be based on proprietary implementations.
As depicted in Figure 5, in terms of specific IoT use cases driving MEC, the top four highest-
value use cases based on extremely important response levels are video content delivery
(36%), smart cities (35%) and utilities and connected car (both 30%).
These rankings are significant since these use cases represent massive business opportuni-
ties for CoSPs and are very well suited to support via an MEC deployment. The relationship
between these use cases and MEC also provides further insight into MEC attaining such a
high level of implementation commitment (see Figure 1).
Figure 5: IoT Enterprise Use Case Drivers
Question: Please rate the importance of the following enterprise IoT use cases in driving
your company's MEC deployment strategy (N=104-106)
ASSESSING OPENNESS
Unquestionably, one of the greatest value propositions of MEC is its openness. However,
assessing openness can be a complex undertaking. Accordingly, we asked the CoSP survey
respondents to gauge a broad range of openness indicators encompassing application pro-
gramming interfaces (API) to integration timeframes.
30%
35%
16%
30%
20%
36%
11%
21%
24%
39%
38%
50%
46%
50%
43%
54%
50%
45%
15%
23%
31%
19%
25%
18%
30%
24%
24%
16%
5%
3%
6%
6%
4%
5%
5%
7%
Connected car
Smart cities
Retail
Utilities (e.g., power and water grids)
Health
Video content delivery
Education
Financial
Manufacturing
Extremely Important Important Only Somewhat Important Not Important

As depicted in Figure 6, not surprisingly, CoSPs consider multiple factors almost equally
when assessing edge network openness. The top four rankings based on extremely important
responses are API openness and ability to integrate third-party applications (both 36%),
followed by application agility (33%) and standards compliance (30%). This is significant
because we believe that these attributes when aggregated into a transformation strategy
deliver multiple ways to truly assess openness, which will be key since each edge deploy-
ment will be unique.
Interestingly, the ability to support multivendor commercial-off-the-shelf (COTS) computing
platforms also scored highly, based on extremely important (24%) and important (52%) re-
sponses, which reinforce that open hardware COTS platforms are also a central considera-
tion in assessing openness. On an aggregate level, the only logical conclusion that can be
reached from this input is that openness equally applies to both software-based APIs and
the platforms they run upon.
Figure 6: Assessing Edge Openness
Question: Please rate the importance of the following attributes in assessing the openness
of your edge network. (N=105-107)
IMPLEMENTING EDGE TECHNOLOGIES: CHALLENGES &
NEXT STEPS
While CoSPs are committed to deploying MEC and possess a well-balanced view of the
steps for evaluating openness, realizing an open and scalable edge cloud requires that
vendors and other ecosystem partners deliver products that comply to the requisite open-
ness requirements.
36%
22%
36%
33%
24%
30%
46%
54%
50%
45%
52%
50%
18%
23%
14%
22%
23%
20%
1%
1%
1%
1%
API openness
SDK openness
Ability to integrate third-party
applications
Agility – reduction in timeframe to
introduce new applications in the edge
Ability to support multivendor COTS
computing platforms
Standards compliance
Extremely important Important Only somewhat important Not at all important

These vendor dependencies apply not only to MEC, but to any edge-based technology. And
CoSPs share a similar view: For instance, as depicted in Figure 7, technologies such as 5G,
AI, IoT and Central Office Re-architected as a Data Center (CORD), which rely on edge com-
puting foundationally, all share several common implementation challenges. The top three
here are ecosystem immaturity (19%-23%), hardware platform limitations (openness or
scale) (15%-21%) and standards immaturity (15%-21%).
Figure 7: Challenges at the Edge
Question: What are the biggest challenges your company faces in implementing the follow-
ing technologies? (choose all that apply) (N=102)
In many respects, the data captured in this figure also closes the feedback loop. This is
because the CoSPs' top implementation challenges have a strong level of alignment to the
attributes that CoSPs will rely upon to measure openness (see Figure 5), which reinforces
that openness at the edge is a foundational element for all the innovative emerging edge
technologies.
Consequently, the message is clear: CoSPs expect open software, hardware and standards-
compliant edge solutions from their partners and failure to deliver them will not only intro-
duce formidable implementation challenges, it will also negatively impact their ability to
truly transform the edge of their network.
In response, the vendor community is now bringing to market commercial products that are
truly open and standards-compliant, with key specifications developed by ETSI, ONF, MEC
and ONF. One such vendor is Intel, which is strongly focused on enabling successful MEC
and edge deployments through the delivery of open software and hardware edge compute
platforms that are fully standards-compliant.
19%
20%
21%
20%
15%
18%
23%
23%
21%
23%
19%
22%
19%
21%
17%
16%
15%
17%
11%
14%
11%
11%
19%
8%
14%
12%
18%
18%
14%
17%
14%
10%
13%
12%
18%
18%
MEC
IoT
5G in general (including vRAN)
5G with advanced capabilities
such as network slices
AI
Central Office Re-architected
as a Data Center (CORD)
Standards immaturity Ecosystem immaturity
Hardware platform limitations (openness or scale) Software limitations (openness or scale)
Cost to deploy Internal cultural and technical skillset challenges

CONCLUSION
CoSPs are in the throes of an edge-driven generational business and technology transfor-
mation. It's generational because the process, once completed, will indelibly alter service
delivery models, cost structures and even vendor and ecosystem partner relationships.
And while some CoSPs may lament that the edge compute model disrupts traditional business
models and is constrained by opaque boundaries, as we have documented in this report,
many progressive CoSPs are embracing edge compute technologies, such as MEC, as repre-
senting new opportunities to effect real and transformative change.
Moreover, the research presented captures that many CoSPs have a well-balanced and real-
istic view of the drivers, use-case manifestations, and even the implementation challenges.
And while edge implementation challenges should not be understated, the positive news is
that many of the challenges can be mitigated by embracing basic principles grounded in the
support of open and standards compliant hardware and software.
Since MEC embodies these attributes, CoSPs are cognizant that deploying MEC will play an
invaluable role in grounding and driving openness in the implementation of other strategic
and complementary technologies, such as IoT, CORD and even AI.
ABOUT INTEL
By transitioning to a new generation of open networks based on flexible and optimized
industry-standard servers, today's networks can become cloud-optimized and more auto-
mated, meeting next-generation performance and functionality demands from the core to
the edge. Intel is leading this network transformation with proven technology platforms
that deliver the capabilities for high-performance, efficient, scalable and agile 5G-ready
networks. Learn more at www.intel.com/network.
Additionally, Intel is championing broad ecosystem initiatives to address the requirements
introduced by edge computing. To this end, Intel has established Intel® Network Builders,
an ecosystem of independent software vendors (ISVs), operating system vendors (OSVs),
original equipment manufacturers (OEMs), telecom equipment manufacturers (TEMs), sys-
tem integrators and communications service providers designed to accelerate the adoption
of network functions virtualization (NFV)- and software-defined networking (SDN)-based
solutions in telecommunications networks and public, private enterprise and hybrid clouds.
https://networkbuilders.intel.com

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