What did the "players" in the trillion-dollar edge computing market do in the first half of 2018?

Edge computing market prospects and valuations

Edge computing is a distributed computing architecture that moves the computing of applications, data and services from the central nodes of the network to the edge nodes of the network logic for processing. Edge computing can improve data processing capabilities and make data processing closest to the data source, thereby providing better performance and real-time experience. According to IDC statistics, by 2020, there will be more than 50 billion terminals and devices connected to the Internet, of which more than 50% of the data needs to be analyzed, processed and stored at the edge of the network. The edge computing market is so large that it can exceed one trillion. For this reason, major giants have made efforts in edge computing. The edge computing market has attracted many well-known companies, including AWS, Cisco, Huawei, IBM, Intel, Microsoft, etc. The following is an inventory of various edge computing "players" to see what they did in the first half of 2018.

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Edge computing players: Cloud computing giants

Edge computing has a certain impact on cloud computing, but it also has strong synergy with cloud computing. In order to maintain the market space that should have been there, domestic and foreign cloud service providers have deployed edge computing in advance to avoid being swallowed up. In the era of the Internet of Things, more terminals or sensors are connected to the Internet of Things, and the node scale is much larger than the Internet. Each Internet of Things node will generate a large amount of real-time data, which means that cloud service providers have to deploy computing at the edge, and the investment scale and time cycle are huge challenges. Of course, cloud service providers are not willing to let others touch their cheese. Microsoft, Amazon, and Google abroad, and Alibaba, Tencent, and Baidu in China are all actively deploying edge computing.

(1) Microsoft Corporation

At the Microsoft Build conference last year, Microsoft's global CEO Satya Nadella officially launched Microsoft's hybrid cloud solution Azure Stack to the Chinese market. It can integrate cloud capabilities into terminals, and data can be processed locally, and then aggregated for analysis and decision-making. It is an edge computing service. In the same year, the company's "intelligent cloud/intelligent edge" strategy emphasized edge computing business. At the Microsoft Developer Conference held in 2018, Microsoft guided more developers by releasing a new generation of edge computing tools using voice, cameras and artificial intelligence technologies, shifting the focus of its business from the Windows operating system to intelligent edge computing. Microsoft also announced a partnership with Qualcomm to jointly build a visual artificial intelligence developer toolkit running Azure IoT Edge.

(2) AWS

AWS is not to be outdone. The Greengrass software released at the end of last year can "seamlessly extend AWS to devices so that they can locally operate on the data they generate while still using the cloud for management, analysis, and long-term storage." In April 2018, AWS's edge computing platform AWS Greengrass was revamped with support for machine learning reasoning. With Greengrass' latest support for machine learning, customers will be able to build their own DeepLens devices and perform reasoning at the edge.

(3) Google

In 2017, Google released a new edge computing service, Cloud IoT Core, to help enterprises connect and manage IoT devices, as well as quickly process data collected by IoT devices. In May this year, Google held its annual I/O conference in Mountain View, California. The entire Google conference revolved around AI technology, and released an independent Android system designed for home appliances and other devices. Unlike Microsoft AI, Google turned to edge computing.

(4) Alibaba Cloud

Alibaba Cloud has made it clear that it will strategically deploy edge computing in 2018, and its core strategy for the future is the "cloud + edge + end" trinity computing model. In March this year, it launched its first IoT edge computing product, Link Edge, which can be used in AI practice. At the time of its release, 16 chip companies, 52 equipment manufacturers, and 184 modules and gateways supported Alibaba Cloud's IoT operating system and edge computing products. Alibaba Cloud launched a quantum computing service on its public cloud, and it is said that the relevant computing resources come from a processor with 11 qubits.

(5) Tencent

The strategies of Tencent and Alibaba Cloud are somewhat different. In the first half of this year, Tencent adopted the "CDN+Cloud" route to enable CDN to have intelligent computing capabilities, but has not yet launched an edge-based open framework. It is only exploring large scenarios such as live video streaming, games, and intelligent pornography identification where Tencent has advantages.

(6) Baidu

At the beginning of 2018, Baidu released "Intelligent Edge" and started invitation-based testing. Baidu Cloud Tiangong puts cloud data management and computing functions on the device side in the form of software, bringing intelligent computing capabilities closer to the data source, and working well with cloud computing to make devices smarter.

Edge computing second player: equipment giants

The rapid increase in network access devices and the large amount of data they generate have forced equipment vendors and enterprises to turn their attention to edge environments. It makes sense for computing to be embedded in edge devices, as it can solve the time cost caused by latency issues and the capital cost caused by budget issues. Therefore, edge computing provides equipment vendors with an opportunity to sell a large number of new software, hardware and solutions. Currently, Cisco, Huawei, Dell, chip manufacturers, etc. are actively deploying edge computing.

(1) Huawei

At the Hannover Industrial Fair held in Germany last year, Huawei and GE Digital jointly released an industrial predictive maintenance solution. On one side is Huawei's edge computing EC-IoT (Edge Computing IoT) solution, and on the other side is GE's industrial IoT (Industrial IoT) cloud platform Predix, which enables real-time monitoring of the operating status of industrial equipment and provides intelligent decision-making for predictive maintenance.

(2) VMware

VMware introduced a new distributed computing stack at the 2018 Mobile World Congress (MWC), targeting specific edge use cases in remote industrial environments, manufacturing and monitoring. The company also said it is working with the National Science Foundation (NSF) to accelerate the design of edge computing infrastructure. In addition, VMware is working with Axis Communications, which makes IP video surveillance products, to develop an intelligent surveillance edge solution that will initially run on Dell's PowerEdge servers and Dell Edge Gateway, and will include VMware software.

(3) Cisco

In mid-2017, Cisco connected edge computing to Microsoft's Azure cloud platform to ensure that enterprises can provide holistic services from edge to cloud.

(4) Chip manufacturers

Among chip manufacturers, Intel, ARM, and AMD have launched a series of "star chips" to keep up with the pace of edge computing. In early February 2018, Intel launched the latest generation of Xeon D processors, which are based on the Skylake architecture and are aimed at the edge and other restricted environments, which are more sensitive to density and power consumption issues. At the same time, ARM also launched the "Trillium" project, which aims to drive the machine learning, artificial intelligence, and target detection capabilities of edge devices through optimized processors to run applications and software that utilize neural network frameworks such as TensorFlow and Caffe. Finally, AMD launched two embedded processors, EPYC 3000 and Ryzen V1000, which use the "ZEN architecture" and are aimed at edge computing.

Three types of edge computing players: CDN giants

The core value of CDN is to intelligently distribute digital content to nodes closer to users, thereby improving overall distribution efficiency, reducing network latency, and saving bandwidth resources. Its inherent edge node attributes, low latency and low bandwidth, give it a first-mover advantage in the edge computing market. CDN itself is the prototype of edge computing. From this perspective, the service capabilities of professional third-party CDN service providers are more advantageous than those of cloud service providers. Faced with the rise of the edge computing market, professional CDN service providers are much more excited.

(1) Akamai

As the global CDN leader, Akamai has been cooperating with IBM on edge computing as early as 2003. In June this year, Akamai and IBM provided edge-based services on their WebSphere.

(2) Wangsu Technology

Wangsu Technology has also made edge computing a core strategy. It began to build an edge computing network in 2016, gradually launched edge computing microservices in 2017, and will gradually open up edge IaaS and PaaS services. At the 2018 Asia-Pacific CDN Summit, Wangsu Technology Vice President Li Dong gave a keynote speech entitled "Building a CDN Edge Computing Service Platform", proposing to upgrade the original CDN network to an edge computing network, gradually build an edge computing platform, open up edge computing resources and services, and provide IaaS and PaaS services for the edge platform. In June this year, Beijing University of Posts and Telecommunications also jointly with Wangsu Technology initiated the establishment of the country's first industry-university-research joint edge computing laboratory.

(3) CloudFlare

CloudFlare launched CloudFlare Workers in 2017, opening up edge computing services in the form of microservices and supporting users to program at the edge. This indicates that it has initially built an edge computing platform.

(4) Nuu：bit

Nuu:bit announced that it can be integrated with Microsoft's Azure Universe database. At the same time, Microsoft's Azure system can also integrate Nuu:bit's data on the platform, which is also a huge breakthrough.

(5) Limelight

Limelight launched an enhanced version of EdgePrism OS software on its CDN network in the first half of this year, allowing users to input and deliver local content at the edge.

Four types of edge computing players: Operators

In order to obtain high-performance and low-latency services in a highly competitive market, mobile operators have begun to deploy mobile edge computing (MEC). In order to become or maintain a leader in the mobile market, it is important for these operators to deploy MEC, otherwise they simply cannot provide the promised 5G platform. MEC will become an inherent part of many value-added services, including delivering popular content to mobile devices as a CDN, providing cloud processing for augmented and virtual reality mobile applications, providing low-latency cloud control for delivery drones, and so on.

(1) China Mobile

China Mobile has carried out various MEC application pilots in more than 20 cities in 10 provinces. In January 2018, China Mobile Zhejiang Company announced that it would join hands with Huawei to take the lead in deploying MEC technology, further promote the network to achieve ultra-low latency, better experience, and build the future artificial intelligence network. In the future, mobile users can get the ultimate service experience through technologies such as augmented reality (AR), virtual reality (VR), ultra-high-definition video, and mobile cloud. In April, China Mobile proposed five scenarios for operator edge computing: local diversion, vCDN, application innovation based on MEC and IoT GW, smooth migration of third-party API applications, and vertical industry services.

(2) China Telecom

China Telecom cooperates with CDN companies and wants to deploy MEC edge CDN as an extension of the existing centralized CDN to serve multiple network users at the same time. In April 2018, Yang Xin, chief engineer of the Network Technology and Planning Department of China Telecom Beijing Research Institute, said at the "2018 MEC Technology and Industry Summit" that China Telecom is exploring MEC and industrial edge cloud, and has paid three attentions to edge computing: overall IDC/CDN resource layout and business planning, operator gateways/equipment, and the launch of MEC-based business platforms and solutions.

(3) AT&T

AT&T said edge computing is a key part of supporting new technologies, including the Internet of Things, software-defined networks, blockchain, artificial intelligence and 5G. AT&T is using edge computing to support AR/VR applications, autonomous driving and smart city projects. In February 2018, AT&T conducted its first trial on a new edge computing experimental platform in Silicon Valley to test augmented and virtual reality (AR/VR), aiming to use edge computing to support low-latency data processing for VR and AR. In April, AT&T's vice president of intelligent edge explained the importance of edge computing in supporting 5G use cases.

(4) Deutsche Telekom

Deutsche Telekom uses edge computing to improve connectivity for self-driving cars, digital transformation, and better network performance for 5G. In January 2018, Deutsche Telekom established a new edge computing business, MobiledgeX, and appointed a former Ericsson technology executive as CEO to further explore edge computing. In February, Deutsche Telekom partnered with Crown Castle to set up an edge computing lab in the United States. The project is an extension of the Living Edge Lab, an ultra-low latency mobile test platform that has now expanded to three sites centered on Carnegie Mellon University in Pittsburgh.

Five types of edge computing players: Core research institutions

Today, the edge computing market is growing. Not only have many well-known companies begun to deploy edge computing, but many research institutions, including some universities at home and abroad, have also begun to embrace this large market.

• CAICT is one of the founding members of the Edge Computing Industry Alliance (ECC). CAICT and several members of the alliance have conducted in-depth research on edge computing application scenarios, technical architecture, and major technical capabilities. At the WP1 plenary meeting of ITU-T SG20 (International Telecommunication Union Internet of Things and Smart City Study Group) held in January 2018, the international standard project "IoT requirements for Edge computing" jointly led by CAICT and China Unicom was successfully established.
• In January 2018, Carnegie Mellon University led a new project, CONIX, which received $27.5 million in funding. Over the next five years, CONIX will create a network computing architecture between edge devices and the cloud to prepare for the rise of edge computing. In February, Deutsche Telekom and Crown Castle partnered to set up an edge computing laboratory in the United States, with Carnegie Mellon University in Pittsburgh as the central site of the project.

Six types of edge computing players: Industry alliances

The Internet of Things involves many aspects, including IT, CT, application scenarios, etc. No matter how big a manufacturer is, it cannot cover all aspects. The era of the Internet of Things has arrived, and the trend of edge computing has also arrived. Therefore, various industry alliances related to edge computing have begun to be established, which has also promoted the rapid implementation of edge computing to a certain extent.

(1) Edge Computing Industry Alliance ECC (China)

The Edge Computing Industry Alliance ECC (China) was officially established at the 2016 First Edge Computing Industry Summit. The alliance was jointly initiated by Huawei, the Shenyang Institute of Automation of the Chinese Academy of Sciences, the China Academy of Information and Communications Technology, Intel, ARM and iSoftStone. The total number of alliance members is 62, which indicates that the development of the edge computing ecosystem has officially entered the key implementation stage.

In May 2018, the Edge Computing Industry Alliance hosted the 2nd Edge Computing Technology Seminar in 2018. At the seminar, Huawei shared the concept and typical application scenarios of the edge computing reference architecture, and shared its experience in edge computing development and testing cloud. Several representatives of the Edge Computing Industry Alliance also delivered reports on edge intelligence: architecture, progress and industrial applications, edge computing reference architecture 2.0 and ECC industry promotion, and edge computing development experience cloud.

(2) Edgecross Alliance (Japan)

Edgecross Alliance (Japan) was established at the end of 2017 by six companies, including Mitsubishi Electric, Advantech, Omron, NEC, IBM Japan and Oracle Japan. The edge computing field platform defined by the Edgecross Alliance has two goals: one is to realize a small-scale IoT system at the production site, and the second is to match IoT data tags for production data. The Edgecross Alliance provides development kits to member companies. In the first half of 2018, the Alliance released the Edgecross open platform and application market to provide basic edge computing software services.

(3) Avnu Alliance

The Avnu Alliance is a community that uses open standards to create an interoperable ecosystem of low-latency, time-synchronized, and highly reliable networked devices. On December 5, 2017, Avnu signed a cooperation agreement with the Edge Computing Industry Alliance to promote the common interests of industrial networks and edge computing. The areas of cooperation between the two include jointly identifying and sharing best practices in the field of industrial Internet, cooperating in test bed verification, and coordinating the standardization process and activities of related industries. The combination of the two alliances will be able to push edge computing forward a big step.

(4) ETSI (European Telecommunications Standards Institute)

ETSI (European Telecommunications Standards Institute) actively standardizes MEC. Operators can open their radio access network (RAN) edge to authorized third parties, enabling them to flexibly and quickly deploy innovative applications and services for mobile users, enterprises and vertical segments. MEC is the natural result of the evolution of mobile base stations and the convergence of IT and telecommunications networks. MEC will provide new vertical business sectors and services for consumers and enterprise customers, including: video analysis, location services, Internet of Things (IoT), augmented reality, optimized local content distribution and data caching.

In February 2018, ETSI announced that it would release Hackathons and two white papers, namely "Cloud RAN and MEC: A Perfect Pair" and "MEC Deployment in 4G and Evolution to 5G", to keep EMC in sync with 5G; in June, ETSI announced that it would hold the first ESTI MEC Hackathon in Berlin on September 18 and 19, sharing the same venue as the annual Edge Computing Conference from September 18 to 20.

Summarize

In general, the drama of edge computing has just begun. All parties have only completed the initial layout, and there is still a lack of industry applications and key scenarios. In this context, different forces need to form a joint force to promote the implementation of edge computing. Whether it is the current Internet or the future Internet of Things, all kinds of applications are inseparable from edge computing. Edge computing is becoming a strategic path in the next round of technology upgrades, and it is also a must-fight place for all kinds of players.