Tower Companies Brace for an Edge Computing Bonanza
August 10, 2018
For all the uncertainty in some aspects of edge computing, there is general agreement that cell towers will be the logical location for edge computing to happen first, which is why it's not surprising that major players such as Crown Castle and Vertical Bridge are investing in data center technology and exploring this next new frontier. They aren't doing it in the same way, however, and their respective efforts cast some light on differing business models. (See New Effort Tries to Curb Edge Chaos.)
Of course, neither company identifies itself as a "tower" operator, considering that is one type of wireless infrastructure and they each provide a broader scope including rooftops, ground locations, small cells and, in Crown Castle International Corp. (NYSE: CCI)'s case, 60,000 route miles of high-capacity fiber-optic cable to connect it all. For both companies, edge computing is just the next step in creating shared infrastructure that will support their next set of services and revenues.
That's true for the communications infrastructure industry in general, but what remains unclear is the business model. Joe Reele, vice president, Datacenter Solution Architects at Schneider Electric , which sells data center technology to all players, says two approaches are emerging and it's unclear which is better. Some of these companies, which are sometimes viewed as real estate operators, may get into the data center business themselves, while others will choose to lease space to those with data center expertise. (See The Great Edge Computing Land Grab.)
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