Hoffman: Minimum Edge $3M-10

Servers inside the telco network are going to be important. Korea Telecom has announced 8 regional hubs. I believe Deutsche Telekom offers 13 hubs initially. They are beginning to provide revenue, allow making deals, and let your people build the necessary system and interfaces.

Jason Hoffman is CEO of MobiledgeX, a California based subsidiary of DT. He writes, “A powerful ‘rack’ tends to run about $250,000 and you can do 1-3 per site at a minimum. So generally a basic edge ‘experiment’ is probably around $3.5-6M in hardware and software.”

Distributed clouds are a challenge to manage. The synchronisation can be hard. You’ll need to resolve innumerable problems. Your people need training. Time to get started.

Read moreHoffman: Minimum Edge $3M-10

Why (at least) a mid-performance Edge cloud will be right for almost all carriers.

Deutsche Telekom may be the first carrier in the world to install an Edge Cloud, which they are doing at a remarkably low cost. By going further back in DT’s transport network, they reduced the number of boxes required from 10,000’s of thousands to hundreds.

A cloud like this – highly reliable but not quite as fast – would be a very small percentage of a carrier’s capex budget. (A carrier has the fiber and other equipment in place.) It would cut the latency on your network by 40% to 70%. Perhaps more important, the latency would be much more predictable.

DT started with an initial dozen sites, which connected to almost all of the country. It is also installing at as many as 900 additional locations in the regions. This is a Level 3 Cloud – on the carrier’s network but several hops from the towers.

Read moreWhy (at least) a mid-performance Edge cloud will be right for almost all carriers.

Pokémon GO first to DT “Edge network in the core”

Deutsche Telekom is building an “Edge infrastructure through decentralized cloudlets.” Niantic Pokémon GO will be one of the first apps, with other AR/VR nets joining in. Controlling autonomous cars probably cannot work, but coordinating them and working with the connected car’s onboard computers could yield remarkable results.

Cloud servers with ample processing power will be located in one of Deutsche Telecom’s 17 facilities that connect all of Germany or one hop closer to the consumer. 

Read morePokémon GO first to DT “Edge network in the core”