South East Asia enterprises want business and operational performance improvement more than the prospects of technology innovation or reduced network costs through edge computing deployment. Service providers must make sure their managed services do not fail the business test.
There will be barriers to hold back deployment. There is a surprising number (25%) of businesses who are cautious about edge service deployment, primarily because they have not examined what it is or investigated its possibilities (“lack of knowledge”). Market education will be needed but Omdia believes there is no shortage of this now and over time, enterprises will be up to speed. The most specific barrier to deployment is related to security requirements and doubts about security. Omdia expects an increased spending in security as edge takes off especially around the networks and encryption in line with the proliferation of data that will rest at the edge. However, others cite technology fragmentation, presumably because the new systems in edge computing might in their view add complexity or require internal redeployment of people and skills. There will also be requirements to integrate new technologies with legacy systems. Edge also works best when data stop sitting in silos. Enterprises will also need to retool their information architecture.
Despite the uncertainties or barriers, Omdia believes that the future will be at the edge especially with the onset of 5G in Singapore. The need for speed to data and the extracting intelligence will outweigh some of the drawbacks, especially cost. The competitive landscape for many industries is moving faster than ever, and rapid innovation and agile operations will be key goals for enterprises. Edge services will be a cornerstone of many of these conversations. Over the next 12-24 months, Omdia believes that the ICT industry will see an acceleration of partnerships formed to drive more edge solutions and awareness in the marketplace. This will bring together players from various segments of the industry from hyper-scalers, software providers, telecoms and system integrators. More importantly, enterprises will train their IT employees with the necessary and relevant skills so that they can leverage edge to the fullest.