Research shows: 80% of enterprises will strengthen 5G and edge plans

Edge and 5G have become leading areas of investment across industries, seen as a powerful way to drive businesses to the next level of digital transformation. These 5G and edge initiatives are particularly evident in manufacturing and healthcare.

That's one of the main takeaways from a study by Google Cloud and Omdia. While this report is aimed at cloud service providers, it also offers valuable insights for enterprise users. "Manufacturing clearly sees the edge opportunity, but others are not far behind," the study's authors noted. Edge is also gaining momentum in healthcare and retail.

Overall, 70% of companies expect to spend $100,000 or more on edge devices within the first 24 months of deployment. Nearly a quarter of the industry expects to spend $1 million or more.

5G networks are an important part of this picture. The survey shows that eight out of ten businesses believe that the availability of 5G is very important to benefit from edge computing. In addition, seven out of ten businesses expect to invest in edge in the next 12 months.

The survey shows that real-time insights from cognitive analytics are driving the adoption of 5G edge. Business intelligence and automation deployments will more than double in the next 12 months, while monitoring and transactional cognitive analytics are the most widely deployed and planned. In addition, edge initiatives will play a role in data storage and site mirroring, which will continue to gain momentum.

Of course, edge computing isn’t happening in a vacuum — it’s part of a broader transformation. Nearly 50% said edge computing is part of a network and connectivity transformation initiative, and a third said edge computing is part of an enterprise-wide digital transformation initiative. Only one in five said edge computing is part of a stand-alone project for a specific business unit.

Among manufacturers, 46% already use some form of edge technology, and another 25% plan to invest within a year, the survey shows. While many are being used or considered, 42% are looking at locally hosted edge services. The most needed shift is for customers to design their own products and experiences.

The biggest challenges facing manufacturers looking to implement edge and 5G include operational efficiency, employee productivity, security and skills. At least 40% of enterprises have only one edge-enabled site, but 61% will expand, most likely to five or fewer sites. Nearly 40% believe that a private 5G network is essential to using edge technology.

Among healthcare providers, 46% use some form of edge technology, with another one-fifth planning to invest within a year. More than a third are using or planning on locally hosted edge solutions. The most needed transformation is giving customers control, seamless entry to premises, and access to medicines and data.

Edge is likely to be under the network budget; one-third say it is part of digital transformation; less than one-fifth say it is under the cloud budget. In addition, 44% say 5G is critical to edge success; 81% say it is critical for campus network upgrades. One-third are looking into private networks.