Verizon this week expanded its 5G mobile edge computing (MEC) offering with Amazon Web Services (AWS) to target both a public edge for consumers and private edge for enterprises. The move signals a growing preference for AWS, but Verizon isn't admitting as much at this juncture.

The operator previously said it intended to use the world’s largest cloud provider for public edge use cases while it positioned Microsoft Azure for private enterprise deployments at the edge. However, that forked 5G edge strategy has evolved to a more blended offering that allows customers to stick with AWS for consumer or enterprise use. 

Verizon describes the broader use of AWS for its edge offering as an expansion, not a shift in strategy, but it’s also the only currently available option. “We are committed to building a MEC offering with Microsoft, but it’s not commercially available yet,” a Verizon spokesperson said. 

The operator declined to provide details about when its Azure-delivered edge will be commercially available, and reiterated that Ice Mobility, a supply chain logistics company, remains its only trial customer for private mobile edge on Microsoft’s cloud. Verizon also withheld details about potential plans to expand its use of Azure for both public and private edge.

Verizon’s AWS-centric edge is likely a preparation “for the rise of distributed clouds, where a business’ cloud strategy shifts from centralized clouds to a mix of centralized clouds, private clouds, and public or private edge locations,” Zeus Kerravala, founder and principal analyst at ZK Research, told SDxCentral.

Verizon Targets Consistent, Distributed Edge With AWS

“In theory, one could mix and match clouds and do something like use AWS for public clouds and Microsoft for private, but that’s never been the case as translating policies and configuration settings don’t work well between cloud providers,” he explained. “In the short term, it’s more likely that customers pick a single cloud provider for their distributed cloud needs.”

The branched use of AWS for Verizon’s edge also “ensures consistency of services across consumer and enterprise,” Kerravala explained. “While these have historically been distinct, consumer and enterprise experiences are coming together.”

Verizon first deployed AWS’ Wavelength edge computing platform in August 2020. The Wavelength-powered service is currently available in 10 U.S. markets, and Verizon said it will reach an additional 10 U.S. cities by the end of this year. The Outposts on-premises data center platform for private edge use cases will be deployed on a more custom and individualized basis. 

“We see public MEC as an opportunity for a multi-tenant situation where many developers can use public MEC in a given location and a given city, whereas private MEC is for a dedicated single customer deployment,” a Verizon spokesperson explained. 

The operator sees continued interest in public MEC, according to the spokesperson, but it isn’t providing details about adoption rates or usage.

AWS Remains Verizon’s Exclusively Available Edge Offer

Verizon’s intensified use of AWS, now for 5G edge in private enterprise environments, also follows a relatively broad industry expectation that the greater and more revenue-rich opportunity for MEC rides on private enterprise use cases. 

“The opportunity in general for disruptive 5G services is heavily weighted toward enterprise,” Will Townsend, senior analyst at Moor Insights & Strategy, wrote in response to questions. “Edge will supercharge those use cases by reducing latency and putting compute power close to data-creation points.”

Verizon is also forming its initial edge strategy around the more mature offerings provided by AWS, compared to Microsoft, according to Townsend. “This may signal a shift in emphasis to AWS.”

The operator last month said it expects the total addressable market for private edge computing to reach $1 billion by the end of 2022 and up to $10 billion by 2025.

Kerravala also views this week’s news as a “short-term negative for Verizon and Azure,” but he expects the companies to eventually make a similarly split framework available. “I do think it’s an admission by Verizon there is more interest in AWS from customers,” he said. 

“The simplest way for a customer to adopt edge is to embrace a single cloud provider,” Kerravala added. Verizon’s spokesperson also said the operator expects enterprises to build private MECs around their existing or preferred cloud vendor. 

“Verizon is investing heavily in edge relative to its competitors, and it could provide it a competitive advantage down the road,” Townsend said. 

Although the mobile edge market is young and Verizon does stand out as one of the first global operator’s with a commercial offering in the space, Kerravala is less complimentary with respect to Verizon’s accomplishments thus far. 

The operator has been slow, and “it’s use cases revolve around IoT, which is what most of the industry talks about,” he said. “I’d like to see Verizon bring some unique offerings to market with new use cases. We are in the early innings, but that’s when good companies tend to bring a lot of thought leadership. But then again, Verizon hasn’t been a thought leader in anything meaningful for decades.”