Telefónica is looking to Microsoft to help the telecommunications company bolster its private 5G network product with integrated edge compute capabilities. The move is setting Telefónica up to increase its industrial deployments. Using Microsoft is a no-brainer for the company as both have a rich history of collaborating, including in 2019 for its initiatives in artificial intelligence (AI) and machine learning. The two companies would also work together in 2020 by expanding into cloud capabilities. The Spain-based telecommunications giant would even gain a commitment from Microsoft to open a new data center region in Spain.
Gonzalo Martín-Villa, the CEO of the Internet of Things and Big Data at Telefónica Tech, released a statement that spoke on how by collaborating with Microsoft, each company would be able to provide consumers with “a framework for the creation, deployment, and operation of industrial solutions and their private communications in an integrated way inside and outside the factory.”
By introducing its integrated architecture model, Telefónica will be helping provide speed adoption for smart factory processes. These processes require complex computing and AI to improve security and decision making, digital equipment, and access to data that is on the premises.
Private 5G networks are having a moment and will for the foreseeable future. Many companies are looking into providing privatized 5G networks for entities. Telefónica’s desire became more clear after purchasing Affirmed Networks and Metaswitch in 2020. DISH Wireless has launched its cloud-native 5G network in Las Vegas, Nevada earlier in 2021 and has been adamant about using network slicing to provide customizable, privatized 5G networks to entities.
Testbeds such as the collaboration between AT&T and UConn continue to show the capabilities of privatized 5G networks. Ericsson is leading the charge by using a privatized 5G network for its factory and showing how it can be used in a manufacturing setting. AT&T is also working on showing how privatized 5G networks can help in manufacturing with its own testbed. These are all important because the privatized 5G network market is expected to be a huge one. Estimates from Verizon Business expect the market for privatized 5G networks to reach between $7 billion and $8 billion by the year 2025.
Source: Fierce Wireless