5G and the Edge are two technologies that naturally synergize to produce faster data processing for industrial applications. 5G needs edge computing capabilities, as the on-site processing enabled by Edge Computing is really the only way for 5G to meet its goals of millisecond latency while also enabling the deployment of 5G in chunks. Telefonica Tech, a Spanish telecommunications company, knows the importance of the edge and announced on May 11, 2021 that it would partner with Microsoft to bring its model of private 5G networks to factories.
Telefonica is no stranger to partnering for edge computing capabilities. In 2020, it partnered with Google Cloud to bring 5G services to businesses in the Madrid area. Now, they have tapped Microsoft to expand their mission. Looking at Microsoft’s patent portfolio (21 patent assets in 5 years) in the Edge Computing Patent Forecast®, one might be perplexed as to why it was chosen for this venture, but the partnership makes sense. The two most prominent American 5G providers, Verizon and AT&T, both have their own patent coverage in the space, with 32 and 20 patent assets respectively. Therefore, Microsoft was likely looking internationally for 5G providers without a strong edge computing patent portfolio, like Telefonica. Telefonica, for its part, was looking to leverage Microsoft’s Azure platform and integrate into it. Azure has more name recognition than the platforms of the top assignees in the space (such as Intel and Cisco) and a more developed platform. Plus, Telefonica has a long standing relationship with Microsoft, having already partnered with their Azure platform in 2019 for developing artificial intelligence.
Microsoft has 21 patent assets since 2016
What can this partnership tell us going forward? Well, telecom companies without strong patent portfolios will likely be looking for edge computing partnerships and Microsoft’s competitors will want to make an entrance. Intel, having 106 patent assets in the sector, likely feels particularly burned by this deal, as it has stressed industrial applications of its edge technology in the past. Looking at top telecommunications companies, Softbank, America Movil, and NTT are all potential targets, and Intel, Cisco, and Akamai will all be competing with Microsoft to gain a 5G partnership.
To keep up with latest developments in Edge Computing technology, check out the Edge Computing Patent Forecast®.
