All over the world, digital transformation has truly come of age—and communications service providers (CSPs) are moving fast to take advantage of all its new opportunities. We’re seeing some of the most exciting developments in the Asia Pacific and Japan (APJ) region, where enterprises are embracing data-driven technologies and solutions to reimagine their critical processes and operations; unlock new efficiencies; and boost business agility.
In the most recent phase of the transformation, these innovators are focusing on the edge, close to where endpoints generate and consume data. For CSPs, these edge use cases can open up the doors to more differentiated services, better value to customers, and new revenue streams. We’re seeing regional trends in edge opportunities for CSPs around the world, so we’ll focus on those we see in APJ for this specific blog.
Before we dig into unique opportunities in APJ, let’s do a quick review of the broader software-defined edge.
Edge use cases pose distinct challenges
Today’s edge-driven solutions offer a new level of business agility and insight, through applications like real-time AI and ML-powered analysis, augmented reality (AR) and extended reality, and more automated processes. But like any groundbreaking technology, they still present some challenges, for enterprises and CSPs. Many of these applications won’t work from a traditional centralized data center, because they have stringent latency and performance requirements that necessitate resources in closer proximity.
Edge-centric applications require special management, because of the need to self-administer resources as needed. A welding robot, for instance, can’t be interrupted for a scheduled update from a data center, it needs access to updates as required to support continued operation. Moreover, some organizations might have thousands of edge locations where workloads require processing. Managing this sprawl is a necessity.
Edge locations also vary greatly, making it difficult for CSPs to offer centrally managed edge services. A manufacturing facility, chain of retail stores, an ambulance, and RAN cell tower could all act as “edge” sites, but they will have different resources available depending on size, location, connectivity, and level of IT support.
With their large footprint and expertise managing distributed networks, CSPs are well-positioned to meet their customers’ challenges. With a comprehensive, software-defined edge solution, they can support their enterprise customers’ advanced distributed applications—and acquire the unified control and manageability they (and their customers) need to address their own challenges at the edge.
The Asia-Pacific region is ripe for digital transformation
Asia offers a wealth of potential opportunities for CSPs. The pace of technology adoption varies greatly from country to country. For example, although surveys indicate that Asia was initially a laggard in IoT deployment, the region is now poised to outpace the rest of the world. By 2023, IoT growth in the region had accelerated to 20%.
Whether an organization is just embarking on its edge journey, or has established a more mature deployment, flexibility and future-proofing the technology will be paramount for success. Like their counterparts in other global regions, APJ organizations depend on adaptable, robust connectivity to support their transformation efforts. From sites in Tokyo to rural locations in Indonesia, the performance, reach, and reliability of connectivity will determine if edge solutions are a viable option. In organizations with multiple sites and different levels of connectivity, a mixed approach may be required, with solutions capable of supporting offline as well as connected infrastructures.
Unlocking better outcomes across many industries
Despite the challenges and variable pace of adoption, organizations throughout the APJ region are rapidly embracing edge-centric applications to support a wide range of use cases.
Streamlining manufacturing processes
Manufacturers are looking to the edge to make their processes more efficient, get out in front of potential maintenance issues, and improve their overall quality. For example, they are deploying AI-enabled computer vision for quality inspection and using insights from the edge to enable more predictive maintenance. According to Business Market Insights, the Asia Pacific region’s manufacturing sector has been transforming its operations with digitization and IoT. Its edge computing market is estimated to grow at a CAGR of 23.3% from 2022 to 2028.
Delivering a superior consumer experience in retail
In retail environments, edge technologies can support more personalized, engaging customer experiences with real-time mobile promotions, digital AR mirrors, and analytics that optimize customer service and checkout processes at cafes and other spaces. Behind the scenes, AI-enabled computer vision is improving loss prevention and inventory monitoring, while supporting capabilities like customer heat maps. According to Market Research Future, the Asia Pacific retail edge computing market is expected to register significant growth from 2023 to 2032.
Utilities modernize for flexibility
Energy and utilities are another area that’s experiencing rapid change. The accelerated pace of industrialization in regions like India is driving soaring power requirements—and governments see this as an opportunity to meet new needs. According to a recent survey, India’s power generation experienced its highest growth rate in more than 30 years in 2023. To keep pace with rapid scale, utilities are modernizing their substations to deliver more flexibility and scalability. Increased virtualization and more edge-centric applications are playing a key role in distribution, transmission, and generation facilities.
Transportation and public sector build safer, faster systems
Mobile edge applications are also playing a vital role in improving the safety and efficiency of transportation in the APJ region. We have already seen advanced transportation applications in the U.S. and Europe with autonomous vehicles and more intelligent road and traffic control systems.
Unlocking possibilities with a platform for innovation
Although plenty of challenges at the edge remain for APJ organizations, CSPs can help their enterprise customers rapidly move forward on their transformation journey.
With VMware’s software-defined edge approach, enterprises can bring a right-sized edge computing infrastructure to any of their dispersed locations, close to where endpoints and devices generate and consume data. A holistic management platform allows edge applications to access resources as it needs them while linking with a programmable telco network. The platform provides the compute power, management tools and connectivity that each distributed workload needs.
CSPs can offer software-programmable edge solutions that deliver the capacity, quality, and availability that next-gen applications require under SLAs, and play a larger role in their customers’ operations. They can provision and control all distributed edge devices and infrastructure remotely using a common intelligent overlay—and gain unified visibility into the entire distributed environment.
With a flexible, programmable edge, enterprises throughout the APJ region can continue to accelerate their digital transformation initiatives—while the CSPs that support them can differentiate their offerings, and open up a growing revenue stream for years to come.
