Cloud-computing giants and phone companies have decided they need each other to drive the market for 5G business services.
Amazon Web Services, Google Cloud and Microsoft Corp. have all signed partnerships with telcos in recent months as they seek new opportunities amid slowing growth in demand for data storage. Telcos, including AT&T Inc. and Verizon Communications Inc., are also looking to revive flagging revenue while tapping into cloud computing's ability to make super-fast 5G networks more efficient and cheaper to run.
"The cloud companies need to reinvent themselves," said Omdia analyst Vlad Galabov.
"Communications service providers have the same thing — everyone has a mobile phone, a network — so both have saturation."
The parties are working together to bring computing functions such as data processing onto the 5G network, closer to where data is generated. This system, known as multi-access edge computing, or MEC, enables partners to offer enterprise services such as real-time analytics, manufacturing automation and live product tracking.
Teaming up is a great strategy right now in all industries. If you're needing a solid telecommunications partner to work with in your business, we are excited to collaborate!
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