As private networks gain traction in industrial and manufacturing settings, executives and line managers have begun to look for complimentary applications that could extract unparalleled benefit from 5G. Industry 4.0 is an all-encompassing term but when deconstructed it is a strategic combination of automation, digitization and digitalization, AI and network transformation. Dissecting further, 5G adoption as part of network modernization (FWA, mMTC, mmWave, urLLC, Private network, LoRAN, etc.) supported by AI
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Private 5G networks have lately come into focus mainly due to their formative impact on Industry 4.0 and on the Internet of Things (IoT).
This is evident through their growing market share: unit sales of IoT device shipments based on Private 5G non-mMTC (Massive Machine Type Communication), Private 5G mMTC and Private 4G are expected to rise from
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5G, IoT, Cloud, Microservices and APIs have begun to flow together (literally). If industry findings are any indication, then by 2027, this high-tech combination will be common place in many mid-sized and some small enterprises. Large enterprises will be more focused on perfecting this quintet. Most will have achieved ‘adoption’ milestone close to 2025.
Each of these has either been in the making or in existence close to (or over) a decade.
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Many leading technology firms reported stellar Q1 2021 revenue results with equally bright forecasts for Q2- all in anticipation of cloud adoption. Initially driven by pandemic-induced lifestyle trends such as work-from-home, home schooling and online conferences, this strong momentum continued thanks to consumption-based billing models and subtle push towards ‘OpEx’ (operating expense) over ‘CapEx’ (capital expense) model.
Currently most cloud providers (IaaS, PaaS or SaaS) are focused on capturing greater market share. So much so, that Alphabet is still registering operating loss as it expects it’s investment in Google Cloud to pay off over time. Besides mindset shift (why migrate certain functions from private cloud to a public cloud, when it’s not broken), one of the biggest impediments to cloud adoption has been due to perceived technology integration costs, security and absence of a precise pay-per-use financial model. In recent months, almost all BigTech have dedicated a few roles, if not departments to outlining cost-economics for enterprise cloud.
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Three main reasons why IoT acceptance across Financial Services has lagged behind other verticals can be attributed to ill-conceived use cases, security concerns and unclear cost-benefit proposition. Network Slicing, which has been around for sometime now (introduced sometime in late ‘80s), along with Software Defined Networks (SDN) might be those master strokes which bring much needed price-point clarity to Financial Services-IoT. These two capabilities can be used to bridge the gap between Telecom and Financial Services.
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