Part of a presentation to the World Bank's investment teams regarding institutional investment in ICT for emerging countries.

1. {Core Analysis} BREAK THE SURFACE
Patrick Lopez
{Core Analysis}
Q3 2020
World Bank - IFC
{Core Analysis} All rights reserved © 2020 - Public for World Bank - IFC

2. {Core Analysis}
Telco
Edge
Cloud
DISCLAIMER
{Core Analysis} All rights reserved © 2020 - Public for World Bank - IFC
This report has been prepared specifically for World Bank - IFC by {Core Analysis}. All rights of distribution and license of this
report as well as the content and intellectual property herein are reserved by {Core Analysis}. This report is public, but its content
cannot be reproduced partially or in its integrality without written approval from {Core Analysis}.
Inputs to these analyses and financial models can and do change frequently. While every attempt has been made by {Core Analysis} to
minimize such occurrences, information contained in these materials is not guaranteed for its timeliness, reliability or accuracy.
Figures, text and graphical representations should be considered directional prior to World Bank - IFC analysis and/or investment.
All figures herein are U.S. dollars (USD) unless otherwise noted.
2

3. {Core Analysis}
Telco
Edge
Cloud
SELECT CUSTOMERS & PARTNERS (80+)
3
{Core Analysis} All rights reserved © 2011 - 2020 Public
Start ups
Network Operators Advisory
Large vendorsMid size

4. {Core Analysis}
Telco
Edge
Cloud
EXPERIENCE
EXPERTISE
{Core Analysis} is the leading telco & cloud analyst and strategy consultant.
EXPERIENCE
Innovation programmes setup and management
Continuous integration, development product
management
Market category creation
Value proposition
Corporate strategy and positioning
Product strategy
Corporate development (M&A, strategic
partnership, VAR agreements)
Vendor evaluation and selection
RECENT ACCOMPLISHMENTS
Cloud and telco products, technology designs &
launches
Due Diligence
Acquisitions
Turn around
Financing
Engineered and executed a multi 100’s of million $ joint
venture between Facebook and Telefonica
Launched world’s first OpenRAN implementation
Launched world’s first multi access edge
computing infrastructure
Exclusive advisor to Opera Software in its acquisition
of Skyfire for $155m.
Evaluation of Edge Computing, AWS Outpost,
Google Anthos, Microsoft Azure Stack, Nvidia Ge
force now, MobiledgeX...
4{Core Analysis} All rights reserved © 2020 - Public for World Bank - IFC

5. {Core Analysis}
Telco
Edge
Cloud
LAST MILE CONNECTIVITY AND EDGE COMPUTING
5{Core Analysis} All rights reserved © 2020 - Public for World Bank - IFC
Developers Consumers
Fixed networks Mobile networks
Last mile connectivity
The cloud
Cloud provider owned
Intra zone latency low
Inter zone latency controlled
Inter cloud connectivity managed
Network Operator owned
Best effort latency
Speed controlled
>1ms
~ 3 – 8 ms
~ 3 – 8 ms
~ 20 – 80 ms
~ 10 – 200 ms~ 10 – 200 ms
Latency impact of boundaries
on connectivity

6. {Core Analysis}
Telco
Edge
Cloud
WHERE THE CLOUD MEETS THE NETWORK
Edge computing is the deployment of continuous cloud infrastructure closer to
where the services are developed or consumed than in a centralized cloud.
It allows to deliver localized, low latency, better than cloud performance
6{Core Analysis} All rights reserved © 2020 - Public for World Bank - IFC
For telco carriers, it can mean
• Deploying telco cloud in regions
• Converting central office as mini data centers
• Deploying third party software in your own telco
cloud and sell SaaS, PaaS, IaaS
• Deploying telco mobile edge computing in base
station…
For public cloud providers, it can mean
• Deploying country data centers in a region
• Deploying PoPs in a country
• Deploying PoP in a telco networks
• Deploying appliances on premise
• Deploying apps on devices…

7. {Core Analysis}
Telco
Edge
Cloud
EVOLUTION OF CLOUD
Grid Utility Centralized Decentralized
Virtualized and
software defined
aaS Edge
7{Core Analysis} All rights reserved © 2020 - Public for World Bank - IFC
Cloud
•Pay as you go
model
•On demand
compute
•Infinite scalability
On premise /
device
•Immediacy
•Control and
security
•Always available
•Performance
Edge
Computing

8. {Core Analysis}
Telco
Edge
Cloud
EDGE COMPUTING AS INNOVATION VECTOR
8{Core Analysis} All rights reserved © 2020 - Public for World Bank - IFC
Privacy
Data sovereignty
Collaboration tools
Microsoft online
Storage
Gaming
Video facial
recognition
Real time traffic
congestion
Camera as a sensor
Video surveillance
Augmented reality
Autonomous
vehicles
Drones
Remote surgery
Industry 4.0
Autonomous cars
Robots
AI augmented device
Drones
Connected screens
Dumb Smart Phones
Portable retinal AR
Holograms
Nano machines
B2Bx
Platform
Wholesale, IaaS, PaaS, SaaS
Local cloud
Latency based pricing
Better cloud services New services
New devices New business models

9. {Core Analysis}
Telco
Edge
Cloud
SOME LATENCY EXAMPLES
9{Core Analysis} All rights reserved © 2020 - Public for World Bank - IFC
Less than 2ms
Remote surgery
Industry 4.0
Collaborative robots
Less than 5ms Less than 10ms Less than 20ms
Hologram
MMO Gaming
Augmented Reality
Cloud assisted Autonomous driving
Single player
Cloud gaming

10. {Core Analysis}
Telco
Edge
Cloud
USE CASES TYPOLOGY
10{Core Analysis} All rights reserved © 2020 - Public for World Bank - IFC
Caching high concurrence
content unicast live TV
Filter upstream content before it
reaches the core or the internet
(surveillance videos, bodycams,
early DDOS detection…)
Deploy third party cloud
services at the edge
Multi access services (mobile,
fixed, residential, enterprise)
Private networks, CRBC, local
breakout
Geo specific and localized
services, private, local cloud
Low latency, high compute,
inference

11. {Core Analysis}
Telco
Edge
Cloud
• Hyperscaler sells edge computing
infrastructure to operators who is
integrating it as part of their private
cloud
1
• Hyperscaler sells premium cloud
computing deployed at Telco’s edge to
its worldwide developer base using its
marketplace
2
POSSIBLE MODELS (HYPERSCALER VIEW)
11{Core Analysis} All rights reserved © 2020 - Public for World Bank - IFC

12. {Core Analysis}
Telco
Edge
Cloud
POSSIBLE MODELS (TELCO VIEW)
12{Core Analysis} All rights reserved © 2020 - Public for World Bank - IFC
Colocation Colocation
Hyperscaler products
Configuration
Operation
COTS dedicated hardware
Space
Power
Connectivity
Security
Space
Power
Connectivity
Security
Hyperscaler
products
Hardware
Configuration
Operation
$
IaaS
Hyperscaler products
Operation
Configuration
Operation
COTS multitenant hardware
Space
Power
Connectivity
Security
PaaS
Hyperscaler products
Operation
Configuration
Operation
COTS multitenant hardware
Space
Power
Connectivity
Security
$ $$ $$$
Operator
stack
Operator
revenue
Hyperscaler
stack

13. {Core Analysis}
Telco
Edge
Cloud
COMPETITIVE DYNAMICS
Telco Hyperscalers
Risk Opportunity Risk Opportunity
Hyperscalers to
disintermediate telcos from
their consumer and
enterprise customer base
Offer a better than public
cloud performance
A federated telco edge
computing offering rivalling
global public clouds
Telco edge computing
buildout deploying
hyperscaler infrastructure
Not being able to offer global
services between all operators
in every country
Create a global marketplace
for mobile computing services
See the emergence of new
local / edge cloud competitors
Extend traditional cloud
services with improved
performance
Not being able to execute as
fast as hyperscalers
Create new low latency hyper
localized service offering
Have to deploy and invest
massively for edge
deployment buildout
Create new low latency hyper
localized service offering
13
{Core Analysis} All rights reserved © 2020 - Public for World
Bank - IFC
13
Build private edge faster than
hyperscalers
Have telcos buy hyperscaler edge infrastructure by
promising access to marketplace and developer
community