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The growth of Edge Computing brings new revenue potential for

DENVER, Oct. 04, 2022 (GLOBE NEWSWIRE) — As data storage and computing become increasingly decentralized, rural telecommunications companies have an opportunity to capitalize on the booming computing market of point. Edge Computing refers to a distributed data center architecture. Data is stored and processed at the edge of the network, closer to where applications are used, rather than in centralized data centers typically located in major urban areas.

Edge computing is poised for steady growth as businesses in urban and rural areas adopt highly automated machine learning and artificial intelligence applications that require low latency. According to a new report from CoBank’s Knowledge Exchange, the emerging market represents a new business opportunity for rural telecom operators.

“While the lion’s share of edge revenue is expected to go to application providers, telcos are still exposed to around 20% of the market through connectivity, managed services, hosting and integration,” said Jeff Johnston, chief communications economist for CoBank. . “For rural operators, partnering with big data service providers looking to deploy state-of-the-art IT equipment in rural areas is probably the best strategy.”

The main advantages of the decentralized approach to edge computing are cost and latency, the time that elapses between a user request and the completion of that request. Cost savings come from reducing or eliminating data transport. The longer the data has to travel, the more it costs to send it. Storing and processing data on-premises, or in a nearby edge computing co-location, is less expensive than doing it in the cloud.

When it comes to latency, highly automated AI applications rely on low latency network support. Robotics in a manufacturing plant environment and virtual reality glasses are examples of applications that require low latency. Bringing data centers closer to where these applications are used reduces latency and ensures proper operation.

The global edge computing market is expected to grow at a compound annual growth rate of 37.3% between 2022 and 2031, according to Transparency Market Research. Several factors, including the emergence of private wireless networks, are contributing to this growth and the decentralization of data storage and processing.

Increasingly, private wireless networks are being deployed by oil and gas companies, mining operations, and agribusinesses in rural markets with little or no wireless coverage. In these cases, storing and processing data at the edge is preferable because it reduces transport costs and network latency.

“Edge computing is becoming a priority for ‘hyperscalers’ like Amazon, Google and Microsoft, and the reality is that they need help building and managing these networks in rural America,” Johnston said. “This could involve using existing central office real estate, providing connectivity or managed services for security, construction and maintenance.”

Read the report, Partnerships are Key for Rural Telecom Operators in the Booming Edge Computing Market.

About CoBank

CoBank is a cooperative bank serving vital industries across rural America. The bank provides loans, leases, export financing and other financial services to agribusinesses and rural electricity, water and communications providers in all 50 states. The bank also provides wholesale loans and other financial services to affiliated agricultural credit associations serving more than 76,000 farmers, ranchers and other rural borrowers in 23 states nationwide.

CoBank is a member of the Farm Credit System, a national network of banks and retail lending associations licensed to serve the borrowing needs of agriculture, rural infrastructure and rural American communities. Based out of Denver, Colorado, CoBank serves clients from regional banking centers across the United States and also has an international representative office in Singapore.