Telecom Italia, Google collaborate on edge-processing initiatives - Business Insider

The telecom will set up a standalone company to manage its data center and cloud services business, which will collaborate with the search giant to develop market-ready initiatives for both consumers and enterprise customers. Neither company has offered significant insight into what those initiatives will look like, but TIM Network operators are developing increasingly capable edge-processing systems to deliver greater value to customers and relieve burdens on their networks.

As network operators work to deploy edge-processing systems, they're faced with two approaches: Collaborate with big tech companies, or strike out on their own. These two approaches — which we as the connectivity-centric model and the tech-centric model — carry their own set of benefits, risks, and requirements, making one or the other more suitable to a different operator.

The connectivity-centric model centers on the relationship between telecoms and end users, with network operators occupying the types of roles that another company such as a cloud or tech partner typically fill. It can offer far greater revenue potential for a telecom, but carries increased upfront costs in the form of required systems and personnel investment, and means competing with a wider range of competitors, increasing the chance of losing out and facing revenue shortfalls.

The tech-centric model places the tech provider as the key partner for an end user, meaning other products and systems in the solution revolve around the technology. Connectivity is also a key element here, as are devices, but the service offered by network operators is effectively commoditized. Network operators thus have a lower ceiling for increased revenue, but don't need to invest significantly beyond typical improvements to participate in this growth.

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