The Digital Economy – a term first coined by Don Tapscott in 1994 – is not easy to define or measure. At one end, it is limited to the production and consumption of digital goods and services. On the other end, according to the European Parliament, “The digital economy is increasingly interwoven with the physical or offline economy making it more and more difficult to clearly delineate the digital economy“. We are, however, witnessing the Digital Economy transitioning to an economy that is digital.
Given the pervasiveness of the Digital Economy, its future will be determined by the complex interplay of several trends. Some of the trends that illustrate the future trajectory of the Digital Economy are:
We will see AI becoming ubiquitous as it is leveraged in every sector and sphere of activity. According to one estimate, AI is estimated to contribute USD 15.7 trillion to the global economy by 2030, which is more than the current GDP of China and India combined! We are also likely to see rapid progress in technologies related to Extended Reality (XR) in the coming years. COVID-19 is accelerating this trend, as we can see from the offerings of companies like Spatial and MeetinVR that facilitate virtual business meetings. The analog world’s rendering into its digital twin will see us moving towards a metaverse – a virtual shared space imagined in Neal Stephenson’s novel Snowcrash. Some of the biggest names in the tech industry – Apple (Apple glass), Facebook (Oculus), Sony (Playstation) – are assiduously working towards this direction.
Given the importance of telecom infrastructure to the Digital Economy, 5G networks are being rolled out in countries worldwide (Figure 1). However, even as 5G is being deployed, the buzz around 6G is getting louder. 6G may transmit data 100 times faster than 5G and may see deployment by 2030 given the decadal cycles for telecom: 1G in the 80s, 2G in the 90s, 3G in the decade following 2000, 4G in the decade starting 2010, and 5G beginning in the 2020s.
The availability of high bandwidth, low latency networks could lead to newer applications and further breakthroughs in innovative technologies.
The Future of Work
With the rapid growth in automation and AI, we are likely to see significant labour market disruptions. Moreover, COVID-19 has been a watershed for the global economy – its impacts will continue to be felt for many years to come. According to the International Labor Organization, 495 million full-time jobs were lost in the first two quarters of 2020 due to COVID-19. Lower and middle-income countries have suffered the most, with an estimated 23.3% drop in working hours – equivalent to 240 million jobs.
A recent report from the World Economic Forum estimates that by 2025, 85 million jobs may be displaced due to automation and AI, while 97 million new roles may emerge. We will see significant changes and turbulence in labour markets across multiple industries and geographies in the years ahead. If we look at how the top ten skills required by the top 10 US companies have been changing over time, we get an indication of the Future of Work. Companies are more focused on “soft” skills, that are not easily addressed by AI & Automation.
We are also likely to see a shift from humans adapting to technology to technologies adapting to humans. For example, the acceleration in digital twins combined with advancements in XR could allow unskilled workers to do skilled jobs. AR could guide a worker to repair a piece of mechanical equipment without long years of previous training. Similarly, the emergence of ‘Low Code No Code’ (LCNC) applications will allow ordinary individuals to do tasks that previously required specialised training.
Scientists have long focused our attention to limit the carbon dioxide in the atmosphere to 450 parts per million to avoid catastrophic climate change. In 2016, the World Meteorological Organization reported this concentration had crossed 400 parts per million, leaving us with a shorter runway to prevent calamitous climate change. We are, therefore, likely to see increased efforts to tackle climate change in the decade ahead.
Digital technologies can impact the global climate agenda in multiple ways: smart grids, smart buildings, smart appliances, intelligent transport systems, shared mobility, and 3D printing, to name a few. Digital technologies will also allow new sources of renewable energy to be tapped. For example, the molten core of the earth is over 6,000°C. “Just 0.1% of the heat content of Earth could supply humanity’s total energy needs for 2 million years,” according to AltaRock Energy. Advances in the use of digital technologies that allow for precise directional drilling will allow for advanced geothermal systems to be established as reliable power sources.
Tech bloggers like Doc Searls and Stephen Lewis had begun to theorise about a Splinternet as early as 2008. There was a danger of governments carving the world into geopolitical blocks and creating technology barriers. China’s Great Firewall and the US’s recent responses under the Trump administration are likely to hurtle us in the direction of a fractured internet. We may end up with the US dominating the western internet and China dominating a competing block of countries. The Digital Economy’s evolution would fracture into different camps, making it very different from what it is today.
The most valuable companies in the world today are in tech. Seven of the top ten companies in the world by market cap in 2020 are tech companies.
The recent investigation into competition in digital markets undertaken by the US House Judiciary Committee observed: “Over the past decade, the digital economy has become highly concentrated and prone to monopolisation. Several markets investigated by the Subcommittee – such as social networking, general online search, and online advertising – are dominated by just one or two firms. The companies investigated by the Subcommittee – Amazon, Apple, Facebook, and Google – have captured control over key channels of distribution and have come to function as gatekeepers. Just a decade into the future, 30% of the world’s gross economic output may lie with these firms, and just a handful of others.“
The call for the regulation of big tech will gain momentum in the coming years. The European Union is likely to lead here, just the way just it did in the case of its General Data Protection Regulation.
Governments will also require data monopolies to share data. China mandates its automakers to share data generated by electric vehicles with a government research institute. This data is essential for public safety and planning battery-recharging stations. The Australian Government promotes the concept of sharing “designated datasets” that could include data held by the private sector that has significant community benefits. Similarly, France’s Law for a Digital Republic requires the sharing data by certain categories of the private sector. Such blurring of boundaries between public and private data will become more important.
We will also see the growing importance of data trusts. These are structures where data is placed in the custody of a “Board of Trustees” who have a fiduciary responsibility to look after the interests of data owners. Such data trusts might give individuals better control over their data.
Every aspect of the economy is being digitalised today. In the next decade we are likely to witness foundational shifts in how the Digital or Data Economy is structured. It will also see increasing risks as cyber threats grow exponentially from cybercriminals and state actors. That the world in 2030 will be very different from today is obvious. We may, however, be surprised by the extent and sweep of the change ahead of us.
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The Top 5 Telecommunications & Mobility Trends for 2021
The 5G Divide – Reality for Some and Hype for Others
Despite the economic challenges in 2020, GSMA reports that the global 5G subscriptions doubled QoQ in Q2 2020 to hit at least 137.7 million subscribers. This accounts for 1.5% of total subscribers – and is expected to rise to 30% by 2025.
The value of 5G will become increasingly mainstream in the next few years. 5G offers a tailored user-centric approach to network services, low latency and significantly higher number of connections which will power a new era of mobile Internet of Everything (IoE).
However, there are many operators who are still sceptical about 5G. In the US, many operators failed to get any tangible positives from 5G. In the near term, many operators will continue to evolve their 5G capabilities – a full grown standalone 5G technology implementation in some verticals might take longer.
The unsuccessful launch of 5G by the US operators does not mean that 5G is a failure, however. It also implies that we need to look at other geographies to lead us into 5G – and Asia Pacific may well emerge as a leader in this space. China, for example, leads the drive in 5G adoption; and 5G smartphones account for more than half of global sales in recent months.
Telecom Operators Will Accelerate Digital Transformation
Telecom operators are facing increasing demands for cutting-edge services and top-notch customer experience (CX). The global pandemic has caused revenue loss, due to struggling economies and many operators will aim to reduce OpEX to circumvent these financial pressures, raise the quality of CX and retain existing customers. To realise this, there will be much focus on improvement in efficiencies, better operations management as well as improving the IT stack. These digital transformation efforts will enable rapid and flexible services provisioning, which will be better prepared for the tailored services customers now demand.
Many operators are increasingly incorporating cloudification alongside the 5G network deployment. Operators are moving towards transforming their operations and business support systems to a more virtualised and software-defined infrastructure. 5G will operate across a range of frequencies and bands – with significantly more devices and connections becoming software-defined with computing power at the Edge. Operators will also harness the power of AI to analyse massive volumes of data from the networks accessed by millions of devices in order to improve CX, ramp up operational efficiencies as well as introduce new services tailored to customer needs to increase revenue.
Remote Working Will Transform Telecommunications Networks
The changing patterns in peak network traffic and the substantial movement of traffic from central business districts to residential areas require a fundamental rethink in network traffic management. In addition, many businesses continue to ramp up digital transformation efforts to conduct business online as physical channels will remain limited. Consumer onboarding will also be fervent, as organisations look at business recovery – resulting in increase in bandwidth requirements.
The increasing remote working trend is amplifying the need for greater cybersecurity. Cybersecurity has catapulted in importance as the pandemic has seen a worrying increase in attacks on banks, cloud servers and mobile devices, among others. Cyber-attack incidents specifically due to remote working, has seen a rise. A telecom operator’s compromised security can have country-wide, and even global consequences.
SASE Will Grow – and Sprawl
Although it was perhaps originally seen as an Over-The-Top (OTT) provisioned competitive service to operators’ MPLS services, many telecom service providers have been embracing SD-WAN over the years as part of their managed services portfolio. “Traditional” SD-WAN offers some of the flexibility needed to address the change towards a more distributed access and the workload requirements that the pandemic has accelerated – the technology does not address all of the issues related to this transformed workspace.
Employees are now working from a variety of locations and workloads are becoming increasingly distributed. To address this change, organisations are challenged to move workloads and applications between platforms, potentially compromising security. Despite all the challenges that the pandemic brought with it – both human and technical – it has also provided organisations with an opportunity to rethink their IT and WAN architectures and to adopt an approach that has security at its core.
We believe that secure access service edge (SASE), which is a model for combining SD-WAN and security in a cloud-based environment, will see a drastic rise in adoption in 2021 and beyond.
OTT Players Will Continue their Expansion in the Telecommunications Space
Facebook, Google, Amazon are no longer considered as web companies as they moved from standalone ‘web’ companies to become OTT providers and are now significant players in telecom space. With the Facebook-Jio deal in India earlier this year, and with Google and Amazon actively eyeing the telecom space, these players will continue to explore this space especially in the emerging markets of Asia and Africa. There are telecom providers in these countries which will be prime targets for partnerships. These operators could be those that have a large customer base, are struggling with their bottom lines or are already looking at exit routes. OTT players were already offering services like voice, messaging, video calling and so on which have been the domain expertise of mobile operators for a long time. The market will see instances where telecom providers will sell small stakes to OTT players at a premium and get access to the vast array of services that these OTT providers offer.
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2020 was a breakout year for SaaS providers – and a tough one for a lot of on-premises software vendors. SaaS (or mainly SaaS) providers like Salesforce, Zoom, Microsoft had record growth and some of the best quarters in their history, while other mainly on-premises software providers have had poor quarters. SAP is even accelerating the transition to a 100% cloud-based business as their revenue suffers. The race to deploy SaaS tools and platforms is well and truly happening. Many of the usual ROI models and business cases have been abandoned as the need for agility – to drive business change at pace trumps most other business needs. Ecosystm data validates this
This trend will continue in 2021 – in fact, we expect it to accelerate. Most SaaS solutions (such as CRM, ERP, SCM, HRM etc.) are implemented by less than 30% of businesses today – which means the upside for the SaaS providers is huge.
Hybrid Cloud Will Finally Become Mainstream
The sudden move to remote working in 2020 forced most organisations to increase their use and reliance on cloud-based applications. Employees have relied on collaborative tools such as Zoom, Microsoft Teams and WebEx to conduct virtual meetings, call centre workers had to respond to calls from home – most if not all relying on cloud-based apps and platforms. This trend is set to continue going forward. Ecosystm research finds that 44% of organisations will spend more on cloud-based collaboration tools in the next 6-12 months.
But the forced adoption of these tools has also prompted many – especially larger organisations – to worry about losing control of their IT resources, including worries related to security and compliance, cost, and reliability. As for the latter, both Microsoft Azure and Zoom experienced outages after the pandemic hit and this has made many organisations wary of relying too much on a single public cloud platform. Ecosystm therefore expects a sharp increase in focus on hybrid cloud platforms in 2021 as IT Teams seek to regain control of the apps and services their employees rely the most upon.
Carrier Investment in 5G Will Give Edge Computing a Boost
The gap between the hype around edge computing and the actual capabilities it offers will narrow in 2021 as 5G networks are built out. One of the most promising methods of deploying edge computing involves carriers embedding cloud capacity in their own data centres connected to their 5G networks. This ensures data does not unnecessarily leave the network, reducing latency and preserving bandwidth. This combination of 5G and the Edge will be of particular benefit to applications that until now have faced a trade-off between mobility and connectivity. Over the last twelve months, the major hyperscalers announced their 5G edge computing offerings, and some of the major global telecom providers have served as test cases by partnering with at least one hyperscaler and will likely add more over the next year. Expect this ecosystem to expand greatly in 2021.
Cloud environments can benefit from pushing computing-heavy workloads to the Edge in much the same way as IoT and provides a great platform for managing the edge computing endpoints. The flipside of pushing containers to the Edge will be the increased complexity and the fact that the number of attack surfaces will increase. Containerisation must therefore be deployed with security at its core.
Stateful Applications Will Move to the Cloud with Containers and Orchestration
As organisations seek to migrate workloads and applications between platforms in an increasingly hybrid cloud environment, the need for “lifting and shifting”, refactoring and partitioning applications will increase. These approaches all have their shortcomings, however. Lifting and shifting an application may limit its functionality now or in the future; refactoring may take too long or be too costly; and partitioning is often not feasible or possible. A better approach to this task is to modernise the applications to make use of application containers like Docker, Windows Server Containers, Linux VServer and so on, to enable a faster and more seamless way to migrate applications between platforms. We also see container orchestration environments like Kubernetes and containerised development and deployment platforms like IBM’s Cloud Paks.
How these technologies are used to deploy stateful applications in multicloud environments will evolve. A raft of container management platforms, based on Kubernetes, are being released to simplify what was once a complex DIY process. New entrants will look to challenge the cloud hyperscalers, virtualisation giants, and Kubernetes specialists. The emerging features that previously required cobbling together third-party tools, like service mesh, data fabric, and machine learning, will speed up containerisation of stateful core applications. The deployment of containers on bare metal rather than in virtualised environments will also gather pace. The most challenging task will be delivering containerised applications at the Edge, forcing developers and platform providers to create inventive solutions.
Serverless will take us a step closer to NoOps
As the application lifecycle speeds up and the distinction between development and operations shrinks, the motivation to adopt serverless computing will grow in 2021. While NoOps, the concept that operations could become so automated that it fades into the background, is still a distant goal, serverless computing will make a stride in that direction by abstracting the application from the infrastructure. Having seen the agility benefits of a microservices architecture, many DevOps teams will experiment with breaking services down further into functions. Moreover, the pay-as-you-go model of serverless will appeal to OpEx driven organisations. Expect stories of bill shock, however, as were seen in the early days of cloud adoption. While AWS Lambda is currently considered the serverless industry standard, it is likely that in 2021, Microsoft, Google, and IBM will ramp up efforts in this space. Each of these providers will build out their offering in terms of languages supported, event triggers, consumption plans, machine learning/AI options, observability, and user experience.
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In the recently published the Top 5 Cybersecurity & Compliance Trends for 2021 report Ecosystm predicts that 2021 is when M&As will ramp up in earnest to consolidate the fragmented cybersecurity market. The pandemic has slowed down M&A activities in 2020. Early signs of what we can expect from the market when we emerge from COVID-19 can be seen in the recent acquisition of Asavie by Akamai Technologies. The market is realising the full implication of the shift to remote working and the potential of increased cyber threats – and this acquisition is a sign that larger vendors will continue to strengthen their cybersecurity capabilities by acquiring vendors, with complementary capabilities.
Asavie Enabling the Secure Office Anywhere
Asavie, headquartered in Ireland, offers a global platform that manages the security, performance, and access policies for mobile and internet-connected devices. Asavie delivers secure access to business resources for a mobile workforce – without requiring installation and management of client software. Increasing mobile workloads and Office Anywhere trends mean that the enterprise private network is no longer just PCs/laptops. All enterprise endpoints must be considered to be a part of the enterprise network – and security and authentication solutions must be able to handle this. Organisations will need to explore options where they can give seamless access to their employees without straining their IT and cybersecurity teams – a rapidly installable, scalable, and cloud-managed solution will become a necessity.
More than ever before, enterprises will have to treat all endpoints as branches of the organisation, and the Future of Work goes beyond enabling home offices. The Global CXO Study: The Future of the Secure Office Anywhere finds that 66% of IT and business leaders think of multiple locations, when they think of Office Anywhere. Employees will work wherever they get the best work experience and are most productive. Future work patterns will require that all endpoints are considered as extended branches of the organisation. This involves the ability to extend the enterprise WAN – with speed, flexibility, and security in mind – whether it is a temporary or a home office, an ad-hoc point of sales or an employee on the go. Every employee or device should be treated like a Branch of One.
“Akamai has been diversifying away from its well-known content delivery network (CDN) offering and has successfully built its security business offering in recent years. In 2019, the company nearly doubled its security revenue to USD 849 million from just USD 488 million in 2017. In their 3rd quarter financial results reported in end October 2020, the Cloud Security Solutions revenue was US$266 million, up 23% year-over-year.”
“The move into the mobile security segment has been timely for Akamai as enterprise application and content is moving from behind the firewall to the cloud; adding to the criticality of the cybersecurity threat management. The COVID-19 pandemic has further driven the onboarding of businesses and consumers alike, adding to significant addressable market opportunities.”
“The acquisition of Asavie is a strategic move. Asavie’s solution effectively extends the enterprise security management to incorporate mobile devices as a ‘Branch of One’ enabling CIOs and CISOs to manage security and policies the same way as traditional enterprise network resources. The growth of 5G will further drive IoT devices and a myriad of applications and use cases which will provide for a significant growth opportunity for Akamai – the acquisition of Asavie is a positive move to support this trend.”
Akamai Strengthens Intelligent Edge Capabilities
Asavie’s mobile, IoT and security solutions will integrate with Akamai’s Security and Personalisation Services (SPS) product line sold to carrier partners that embed the solution within the technology bundle sold to their subscribers. With the Asavie acquisition, Akamai intends to help their carrier partners address enterprise and mid-market customer demand for IoT and mobile device security and management services.
“The addition of Asavie to Akamai’s SPS product line provides synergy for the company to expand into new addressable markets for the remote workforce and internet-connected devices to deliver superior experience in a multi-cloud environment. The Global CXO Study conducted by Ecosystm found that three quarters of the organisations rate mobile security as an important or very important part of their digital transformation strategy. Secure mobile experiences will be a core element of the enterprise going forward in the post COVID-19 business environment – driven by employee needs for mobile services and corporate resources from remote locations, with superior identity and policy management, in a frictionless manner.”
“There is an opportunity for mobile service providers and mobile virtual network operators (MVNOs) to leverage the Asavie solution combined with Akamai’s strength at the edge with over 1,500 networks worldwide to offer cloud-based value-added cybersecurity services. The Global CXO Study also found that scaling of endpoint security was a major pain point for half the organisations with more than 100 branches. Service providers can become the enabler by offering services for small and medium enterprises (SMEs) to dynamically adapt their network and security services to fluctuating demand conditions.”
“Although Akamai does offer CDN services for the SME segment, the company heavily relies on service providers and carriers to address this segment in the CDN, cloud security and its burgeoning IoT Edge offerings. Asavie’s market approach is similar and its products and services portfolio appears to complement Akamai’s very well, making it a very good fit for the company. Not only will it enhance Akamai’s SME positioning on the secure connectivity space, but it will also boost its offerings for carriers in the IoT space.”
“Carriers have had a checkered history at best, in understanding and making the most of data services. Mobile Internet took off because of smartphone manufacturers (Apple) and Internet companies – not through carrier offerings. Although carriers appear to be more proactive and forward-looking with regards to IoT, they should not expect to have the foresight to see what services and business cases will make 5G and IoT truly profitable. Rather, their main focus should be on enabling the secure and flexible infrastructure that can ultimately enable others to develop the use cases. The next logical step would then be for carriers to develop IoT orchestration platforms that can manage much larger parts of the IoT value chain. If they succeed in this (and even if they don’t) it could result in a major boost for Akamai’s CDN business.”
“In other words, carriers need help with IoT and to that end, Akamai’s acquisition of Asavie may strengthen its ability to support carriers to reach that goal.”
The full findings and implications of The top 5 Cybersecurity & Compliance Trends For 2021 are available for download from the Ecosystm platform. Sign up for Free to download the report.
Juniper Networks has entered into an agreement to acquire Massachusetts-based 128 Technology for USD 450 million that will enhance its AI-driven enterprise networking portfolio. The deal is expected to close by the end of 2020. The combined portfolio of 128 Technology’s Session Smart™ networking and Juniper’s Mist AI platform will bolster Juniper’s AI expertise in SD-WAN technology.
Ecosystm Principal Advisor, Ashok Kumar says, “Juniper Networks has been a major player in enterprise networking from the core to the edge of the network with SD-WAN, WLAN, and AI-driven applications aware network products. Juniper had strengthened their enterprise networks portfolio with the acquisition of WLAN vendor Mist Systems in 2019 which provided cloud-based management and an AI engine. With Juniper’s acquisition of 128 Technology the network transformation process in the industry will continue.”
The platform created by 128 Technology bases decisions on real-time sessions instead of legacy static systems and networking approaches. The newer system created through this by Juniper will use AI to automate sessions and policies for a full AI-driven WAN operation – from initial configuration to customisable actions across various levels, and AI-driven support.
In addition to this, the automation is expected to reduce overheads, minimise IT costs and deliver better client and user-experience through automated network optimised for client-to-cloud. The two companies also aim to optimise the network and user experiences for voice, 5G and collaboration. Juniper continues to evolve the enterprise networking portfolio adding to the acquisition of WLAN start up Mist Systems for USD 405 million last year. Juniper’s AI -driven SD-WAN and networking products and services for enterprises and end-users is a step towards smart LAN and WAN environments.
A recent study on The Future of the Secure Office Anywhere, conducted by Ecosystm on behalf of Asavie found that 56% of global organisations are looking to improve employee experience, as they look beyond the COVID-19 crisis. The feedback from over 1,000 business and technology leaders globally, also finds that 55% of the organisations are also focused on digital transformation. This will require a re-evaluation of enterprise network solutions, to give employees seamless access to company resources as they continue to work remotely.
“Enterprise communications is being transformed to a user-centric, session-oriented distributed model from a legacy network-oriented centralised WAN model. In the new remote working environment of Office Anywhere, the traditional use of VPN in combination with first-generation SD-WAN will become an impediment going forward. Enterprises will need to re-design networks to address each end-user’s unique needs and their access to applications and all business resources as though they were a Branch of One.”
Telstra and Microsoft have extended their partnership to jointly build solutions harnessing the capabilities of AI, IoT, and Digital Twin technologies in Australia. The partnership will also enable both companies to work on sustainability, emission reduction, and digital transformation initiatives.
The adoption of cloud and 5G technology is already on the rise and creating opportunities across the globe. The Microsoft-Telstra partnership is set to bring together the capabilities of both providers for businesses in Australia and globally. Their focus on AI, IoT, cloud and 5G will enable Australia’s developers and independent software vendors (ISVs) to leverage AI with low latency 5G access to drive efficiency, and enhance decision making. This will also see practical applications and new solutions in areas like asset tracking, supply chain management, and smart spaces to enhance customer experience.
Technology Enhancing the Built Environment
Microsoft Azure and Telstra’s 5G capabilities will come together to develop new industry solutions – the combination of cloud computing power and telecom infrastructure will enable businesses and industries to leverage a unified IoT platform where they can get information through sensors, and perform real-time compute and data operations. Telstra and Microsoft will also build digital twins for Telstra’s customers and Telstra’s own commercial buildings which will be initially deployed at five buildings. Upon completion, the digital twin will enable Telstra to form a digital nerve centre and map physical environments in a virtual space based on real-world models and plot what-if scenarios.
Telstra CEO, Andy Penn says, “If you think about the physical world – manufacturing, cities, buildings, mining, logistics – the physical world hasn’t really been digitised yet. So, how do you digitise the physical world? Well, what you do is put sensors into physical assets. Those sensors can draw information around that physical asset, which you can then capture and then understand.”
Ecosystm Principal Advisor, Mike Zamora finds the comment interesting and says, “It isn’t so much that the physical world is digitized – it is more about how digital tools enhance and enable the physical world to be more effective to help the occupier of the space. This has been the history of the physical space. There have been many ‘tools’ over time to help the physical world – the elevator in the late 1880s enabled office buildings to be taller; the use of steel improved structural support, allowing structural walls to be thinner and buildings taller. These two ‘tools’ enabled the modern skyscraper to be born. The HVAC system developed in the early 1900s, enabled occupants to be more comfortable inside a building year-round in any climate.”
“Digital tools (sensors, etc) are just the latest to be used to enhance the physical space for the occupant. Digital twins enable an idea to be replicated in 3D – prior to having to spend millions of dollars and hundreds of man hours to see if a new idea is viable. Its advent and use enable more experimentation at a lower cost and faster set up. This equates into a lower risk. It is a welcomed tool which will propel the experimentation in the physical world.”
Talking about emerging technologies, Zamora says, “Digital twins along with other digital tools, such as 3D printing, AI, drones with 4K cameras and others will enable the built environment to develop at a very quick pace. It is the pace that will be welcomed, as the built environment is typically a slow-moving asset (pardon the pun).”
“Expect the Built Environment developers, designers, investors, and occupiers to welcome the concept. It will allow them to dream of the possible.”
Telstra and Microsoft – Joint Goals
Telstra and Microsoft have partnered over the years over multiple projects. Last year, the companies partnered to bring Telstra’s eSIM functionality to Windows devices for data and wireless connectivity; they have also worked on Telstra Data Hub for secured data sharing between data producers, businesses and government agencies; and most recently collaborated on Telstra’s exclusive access to Xbox All Access subscription service to Australian gamers with the announcement of Microsoft’s Xbox Series X and Xbox Series S gaming consoles expected to release in November.
This announcement also sees them work jointly towards their sustainability goals. Both companies are committed to sustainability and addressing climate change. Earlier this year, Microsoft announced its plans to be carbon negative by 2030, while Telstra has also set a target to generate 100% renewable energy by 2025 and reducing its absolute carbon emissions by 50% by the same time. To enable sustainability, Telstra and Microsoft are exploring technology to reduce carbon emissions. This includes further adoption of cloud for operations and services, remote working, and piloting on real-time data reporting solutions.
Telstra also aims to leverage Microsoft technology for its ongoing internal digital transformation, adopting Microsoft Azure as its cloud platform to streamline operations, and infrastructure modernisation, including transition from legacy and on-premise infrastructure to cloud based applications.
In June, the Infocomm Media Development Authority (IMDA) awarded 5G licenses to Singtel and JVCo (formed by Starhub and M1), after they completed the required regulatory processes – including the selection of their preferred frequency spectrums, vendor partners and other technical matters such as performance, coverage, resilience, and cybersecurity. They will be required to provide coverage for at least half of Singapore by end-2022, scaling up to nationwide coverage by end 2025. While Singtel and JVCo were allocated radio frequency spectrum to deploy nationwide 5G networks, other mobile operators, including MVNOs, can access these network services through a wholesale arrangement. The networks will also be supplemented by TPG who has been allocated the remaining mmWave spectrum and will be allowed to roll out localised 5G networks.
Ecosystm Principal Advisor, Shamir Amanullah says, “Singapore, along with Thailand, leads 5G adoption in Southeast Asia and major telecom operators Singtel and StarHub launched trials which gives customers an opportunity to experience 5G speeds and potential new services.”
Singtel’s Journey Forward
Earlier this month Singtel launched its 5G NSA infrastructure on a 3-month trial promising speeds of 1Gbps by use of 3.5GHz frequency coupled with the existing 2100 MHz spectrum. It has made it free for the first 20,000 customers with 5G-compatible smartphones. While the 5G signals initially cover certain central and southern parts of Singapore, the coverage is expected to increase over the trial period. Singtel is also working on the development of other 5G services and integrating its network with technologies such as AI, IoT, Cloud, AR and data technologies, in line with the Government’s vision for 5G.
Last week, Singtel unveiled a 24×7 unmanned 5G powered stall to transform and reshape the retail experience. Labelled as 5G NOW @ UNBOXED, the hyper-connected store is designed to provide a first-hand experience of 5G services and possibilities to retailers and consumers. The store aims to offer seamless service experience to visitors looking for services such as SIM card replacements, and device collection through self-service kiosks. To create a more personalised experience for visitors, a 5G virtual assistant Stella is deployed at the store, integrated with facial recognition and emotion reading capabilities which will work in tandem with UNBOXED’s 5G rover Stanley. The rover is connected with the kiosk’s security system and will manage the contactless experience for visitors through temperature checks and maintaining social distancing measures. The 5G service with wireless connectivity and high speeds makes the store movable in a sort of hybrid online and offline retail model.
Amanullah says, “Singtel has ramped up its digitalisation efforts and increased adoption of digital channels and services to improve their customer experience. The 5G NOW @ UNBOXED phygital experience is cutting edge and brings the physical and digital experience in a seamless fashion for its customers. Singtel will be able to integrate physical and digital marketing efforts which should increase sales opportunity. In a recent report, Singtel announced that more than 70% of customer service transactions are online while only 30% of sales are transacted online. The unmanned 5G powered phygital experience should see online sales rising.”
The 5G powered pop-up store follows the launch of Singtel’s 5G non-standalone (NSA) network in the 3.5 GHz frequency as well as existing 2.1 GHz spectrum integrating technologies such as dual connectivity. The trial based 5G network offers Singtel customers a sense of 5G services such as high-speed internet of more than 1Gbps, video streaming, cloud gaming, AR/VR and other consumer use-cases.
JVCo’s 5G Initiatives
JVCo has also launched its 5G connectivity services using the NSA 5G architecture in the country in partnership with Nokia. StarHub launched its trials in August 2020 which will end on 16 February 2021. The trial runs on an NSA 5G infrastructure on the 2100 MHz spectrum with the SA 5G infrastructure operating on the 3.5 GHz expected to be ready in mid-2021. The StarHub Mobile+ or Biz+ mobile plans, allows customers to automatically experience some early 5G benefits using compatible mobile devices. The 6-month, free trial is a lead up to the full commercial launch of 5G standalone services next year. The telecom operator has a planned investment of USD 146.4 million in 5G infrastructure over a five-year period.
Meanwhile, M1 is working closely with IMDA and is expected to roll out 5G trial services, soon.
Amanullah says, “In the challenging financial times due to the COVID-19 pandemic which has impacted roaming, prepaid segment, equipment sales among others, it is impressive that the leading operators in Singapore are bringing cutting-edge connectivity services which should drive digitalisation of consumers and enterprises.”
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“With the virtualisation of our 5G core network, we are laying the foundation for the digital transformation of the German economy. This collaboration with AWS is an important part of our strategy for building industrial 5G networks”, said Markus Haas, CEO of Telefónica Germany.
Sentiment about cloud – especially public cloud – has been on a slight roller-coaster ride since they emerged back in the “noughties”: From initial reluctance to reluctant acceptance – to customer driven enthusiasm to scaling back and migrating back data and apps to on-premises data centres or private clouds to a more recent acceptance, that most enterprise resources may work best in a hybrid or public cloud environment.
Still, the viewpoint of many is still that core resources for the most part belong on-premises – especially if they are essential for the running of the business or involves sensitive data.
It is in this light that the Telefónica Germany announcement is interesting. On the face of it, it may appear that this is a possible major validation of public cloud as a platform for core systems and sensitive data. Although the core network components will remain on a different platform delivered by Ericsson, there is clearly an element of that.
Perception on Public Cloud
Many organisations remain sceptical with regards to public cloud. Ecosystm data shows that almost 40% have private cloud as their primary cloud deployment model (Figure 1); roughly a third have gone for a hybrid model and only around one quarter have chosen a public cloud model.
Most cloud deployment strategies ultimately come down to an evaluation of cost vs. risk and this evaluation is clearly demonstrated in Ecosystm data. Close to 80% of those choosing an on-premises private cloud model mention security and compliance as a main reason whereas cost considerations are the main reason for those opting for a public cloud model (Figure 2). What our data also shows is that public cloud providers are not necessarily winning the argument of cost savings among users.
For many organisations today, security and compliance concerns are still a valid point against public cloud as a primary deployment model. However, as we see more and more initiatives like Telefónica Germany, this argument diminishes – and it will become harder for IT organisations to convince senior management that this is still the way to go.
The Edge Complements the Cloud
The other noteworthy take-away from the Telefónica Germany initiative is how cloud-enabled edge computing is being embraced by the network design to ensure lower latencies for those who need it. The company states, “If companies use 5G network functions based on the cloud-based 5G core network of Telefónica Germany / O2 in the future, they will no longer need a physical core network infrastructure at their logistics and production sites, for example, but only a 5G radio network (RAN) with corresponding antennas.”
As I’m sure that you are an avid reader of Ecosystm Predicts every year, this should not come as a surprise as we wrote about something like this in the Top 5 Cloud Trends for 2020. Although some are touting Edge computing as the ultimate replacement of Cloud, we then believed – and still do – that it will be complimentary rather than competing technology. Cloud-based setups can benefit from pushing computing heavy workloads to the Edge in much the same way as IoT and provides a great platform for managing the Edge computing endpoints.
But to go back to the private cloud bit – while private cloud is not going away in the foreseeable future, we may be starting to see its demise in the more distant future.
To paraphrase a famous Brit: Now this is not the end. It is not even the beginning of the end. But it is, perhaps, the end of the beginning for private cloud.
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