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Tag: vertiv

  • Telcos fear surging energy costs due to 5G

    Telcos fear surging energy costs due to 5G

    More than 90% of mobile operators fear that the arrival of the 5G era will result in significantly higher energy costs, according to research from data center equipment provider Vertiv and 451 Research.

    A survey of mobile operators, released at Mobile World Congress in Barcelona, found high interest in technologies and services that can improve energy efficiency of 5G networks.

    More than 90% of respondents expressed an interest in the emerging energy savings as a service (ESaaS) model of reducing energy costs.

    This model involves working with energy partners to use technologies including IoT sensors, artificial intelligence and other connected technology to gain real-time insight into energy consumption patterns and where improvements can be made.

    Vertiv has predicted that the move to 5G will increase total network energy consumption by up to 170% by 2026, with the largest increases expected in macro, node and network data center areas.

    Despite this and other challenges ahead, the survey also indicates that operators are optimistic about the potential of 5G, and believe the 5G era will start in earnest in 2021. Nearly nine in 10 (88%) respondents to the survey are planning to deploy 5G in 2021-2022.

    To support the transition to 5G, 37% of operators have deployed multi-access edge computing technology, with a further 47% planning to do so.

    451 Research research vice president Brian Partridge said the survey sought to deliver clarity around operators’ hopes and fears around 5G and edge deployments,

    “The two toughest connectivity challenges for supporting 5G topologies were revealed to be upgrading access and aggregation layer networks and adding new backhaul links,” he said.

    “Survey respondents indicated that the availability of high quality connectivity to distributed POPs and ease of site acquisition were viewed as the most critical enablers to 5G success. We were frankly surprised by some of these results and believe it brings clarity to the level of transformation the industry now faces.”

  • Retailers Transforming Distribution, Expanding Online and Turning to the Cloud as They Revolutionize Customer Experience

    Retailers Transforming Distribution, Expanding Online and Turning to the Cloud as They Revolutionize Customer Experience

    As retailers race to deliver more unique and personalized customer experiences, the use of Cloud, IoT and Big Data will accelerate in stores, online channels and distribution centers. However, one quarter of retailers still lag in the process of adopting new technologies and integrating them across operations to present a more integrated customer experience, according to a new report from Vertiv.

    For the report, participants included executives from 50 of the world’s largest retailers, with a combined annual revenue of $953 billion USD in 2017. The study, “Into Uncharted Territory: Retail Transformation and its Impact on Digital Infrastructure”, co-sponsored by Vertiv and DatacenterDynamics, revealed a heightened focus on online retail, as businesses transform their digital resources and capabilities to address changes in customer behavior. Over the next two years, the amount of data center space dedicated to online retail – both on-premise and colocation – is expected to increase by 20 percent, while cloud hosting would increase by 33 percent to support store applications.

    An important part of the retail digital evolution includes a massive transformation of distribution centers. The research suggests the number of distribution centers and warehouses will increase by about 26 percent over the next two years as retail companies increasingly realign operations to meet consumer demand for online purchasing. The amount of data center space dedicated to distribution/logistics is expected to increase by 10 percent and the use of cloud hosting to support distribution will increase by 87 percent.

    “It’s no secret that online retail is driving significant IT investment for retailers. However, as this study makes clear, digital transformation in the retail space is about more than e-commerce,” said Lucas Beran, analyst, data center infrastructure at IHS Markit. “Today’s retailers are striving to improve the IT systems in their stores and distribution centers as they pursue impactful customer experiences across all interactions with their brand. More business-critical online, distribution and in-store environments require new approaches to physical infrastructure to increase IT reliability, speed time to market, hold down costs and reduce management complexity,” Beran added.

    The survey confirms that more computing power is being moved into stores to support edge computing types of applications providing greater customer immediacy and influencing them at the point of use.

    “Retailers are going to move more IT footprint into the stores, to communicate with customers and to influence them closer to the point of decision,” said Martin Olsen, vice president, global edge and integrated solutions at Vertiv. “Our forecast for the next couple of years shows about two dollars going into stores and distribution for every dollar spent in the core data center. And much of that data center investment is being made to support online and stores.”

    To support their transformation, retailers are adopting new physical infrastructure options that provide higher reliability and are easy and fast to deploy. These technologies are based on standardized, modular designs that are scalable with capacity demand and future-proofed for next-generation technological advances.