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Big-tech cloud vendors (like Amazon, Microsoft, and Google), the so-called hyperscalers, are positioning themselves to take on the current landscape of telecommunication providers by developing advanced 5G and edge-computing solutions.
Microsoft, for example, is developing a 5G+edge solution called Azure Private Multi-Access Edge Compute (MEC) with the goal of helping enterprises accelerate digital transformation. Vertical solutions in this space are targeting factory, defense, retail, and healthcare.
A report by TBR estimates that hyperscaler revenues in this space will match and begin to exceed those of traditional telco companies within the next few years.
The traditional telco carriers are not too happy. They are burdened with making the infrastructure investment and dealing with regulatory issues while hyperscalers don’t have similar restrictions.
Jyeh Gan, director at Dell EMC, said that “they’ve got the fiber out there…they’re already in everybody’s home. The hyperscale web guys don’t have that. They might try to build it like Google. But it takes time to build that kind of infrastructure everywhere throughout the globe.”