Increasing the Ubiquity of Edge Compute Infrastructure to Deliver Edge-Enabled Services

FedEx is planning to transform its existing package distribution warehouses by equipping them with edge compute infrastructure. FedEx, alongside Dell Technologies and Switch, is planning to convert its distribution warehouses to edge computing facilities to enhance its operational efficiencies (i.e., facilitating automation, robotics, and RFID for package tracking). This venture into the edge computing space is oriented on exploiting the respective strengths of FedEx, Dell, and Switch. Mini edge computing data centers, supplied by Switch and running software provided by Dell, will be situated in FedEx distribution centers. 

Looking forward, FedEx is also aiming to lease its edge compute data centers to private enterprises and Mobile Network Operators (MNOs) for their usage of FedEx edge infrastructure to run applications closer to end users and improve network latency. In order for MNOs to deliver more value-added, higher-throughput, and lower latency use cases to businesses and consumers, they would need to eventually situate network computing functions nearer to their cell sites. The transformation of FedEx distribution centers with edge capabilities and FedEx’s eventual plan to lease edge computing services is a great opportunity for MNOs to extend their networks and provide higher Quality of Service (QoS) to their customers.

The progressing developments of placing computing capabilities at the network edge to serve the variety of low-latency, high-bandwidth use cases of end users have placed an increased emphasis on two considerations. First, MNOs would need to secure more real estate assets for edge sites that are in closer proximity to said end users. Second, these edge sites would need to be equipped with compute capabilities that can cater to the different service types.

The main pillar that supports FedEx’s plan to position itself as “lessor” of edge sites to MNOs is how its distribution centers are located nearer to urban, suburban, and metro localities. Distribution centers are strategically located near to customers to a) minimize transportation costs, and b) improve services from the reduced average distance to customers. Therefore, FedEx’s eventual plan in putting MNO edge compute functions in its distribution centers would exploit the strategic locations of said distribution centers because their closer proximity to city centers/suburban areas equates to a closer proximity to cell sites serving these localities. The concerted efforts of FedEx, Dell, and Switch is intended to increase the supply of distributed edge compute infrastructure to MNOs that are intending on providing more value-added network services, specifically:

• FedEx leasing its edge data centers (located in its strategically placed distribution centers) will enhance content delivery through lower latencies. MNO-centric services such as content streaming through Content Delivery Networks (CDN), Internet of Things (IoT), or live television streams (services that MNOs can use for brand differentiation) will stand to benefit from edge networks. Content streaming would be augmented when the content is delivered closer to the end user. Placing edge computing functions closer to end users would allow MNOs to also deliver highly customized business services that ensure Service Level Agreements (SLAs) to specific vertical markets as well.
• FedEx’s edge data centers can help facilitate the distributed core and RAN architectures of 5G. Edge compute sites can function as infrastructure in which virtualized/decomposed network functions can run (i.e., virtual radio access networks (vRAN), cloud RAN). Ensuring robust bandwidth and latency standards (falling between 1 and 100 microseconds, depending on the use case) calls for the positioning of virtualized Distributed Units (vDU) and Radio Units (RU) to edge data centers, while the Centralized Units (CU) can be located in central or regional edge sites. The decomposed mobile core, aka Control and User Plane Separation (CUPS), architecture will also be realized through more distributed edge architectures due to the closer positioning of the user plane relative to the end users. The control plane function can be located in more centralized sites and would not require collocation with the user plane function. FedEx’s leasing of edge infrastructure residing in its distribution centers provides more options for MNOs to provision distributed disaggregated RAN and decomposed core functions closer to end users.

The need to have an expanded distribution of edge compute infrastructure will provide the foundation on which these aforementioned services can be deployed in the near future. The demands of edge computing will only continue to increase, and given the already demanding Capital Expenditure (CAPEX) requirements of 5G, MNOs will be hard-pressed to effectively proliferate edge capabilities across more sites by themselves.

In order to successfully roll out edge services, MNOs and service providers will need to leverage on edge-ready real estate from other companies that have deep real estate resources and edge compute/data center proficiencies. Aside from FedEx, American Tower has deployed six edge data centers in the United States in its American Tower Edge Data Center initiative and is planning to eventually lease its edge data centers for MNOs’ 5G deployments. American Tower is capitalizing on its experience with MNOs and existing foundation of infrastructure to facilitate the transition of its cell towers to edge-ready sites.