Web-Scale MEC or DIY MEC: Which is Cheaper?

Cost model shows the best business model for each scenario

While many folks have spent their time in quarantine learning to DIY some historical skills like baking bread, some folks have another, future-minded type of DIY on their minds: successful edge computing for critical industrial applications.

In a new report, Mobile Experts presents the Total Cost of Ownership for building home-grown multi-access edge computing (MEC) servers on-premises for industrial application. The report compares the DIY cost to the use of hyperscaler-based MEC servers, using Amazon Web Services (AWS) Outpost as an example. In the analysis, Mobile Experts are able to make some crucial conclusions about the cost comparison of Cloud Computing vs. Edge Computing. (Hint: it costs about 35-55% more to access a hyperscaler's cloud for a heavy industrial workload at the Edge over three years.)

The report then moves on to its main point: Comparing the cost of Edge Computing based on a hyperscale platform to a DIY version, where the enterprise builds its own platform and maintains everything itself. Here, Mobile Experts is able to illustrate exactly how and why the AWS Outpost approach is less expensive than a DIY solution, as well as other cases where the difference can be much smaller.

"We've talked with large industrial enterprises such as oil companies, that build their own Edge Computing solutions and implement them in the field.", commented Joe Madden, Chief Analyst. "This is considered a normal pattern in many industrial markets, but new platforms are now available that provide local computing and data control with the lower costs associated with large-scale computing."

"To thoroughly address the connectivity and computing capacity required for low-latency industrial operations in a manufacturing setting, we built a scenario with a typical industrial facility and average traffic profiles for a smart factory. We referenced a predefined hyperscaler's MEC server configuration to define the computing requirements at the edge," commented Principal Analyst Kyung Mun. "Using this specific baseline, we built up a multi-year Total Cost of Ownership calculation, which we have been able to validate with leading companies in this market." 

This report highlights the total cost of ownership over three years of hyperscale MEC running on-premise, and each CAPEX and OPEX expense is broken down into the gritty details.

"As technology advances at break-neck speed, computing requirements will have many people looking to move from cloud computing to edge computing. In this report, we've calculated the true costs at a detailed level. We did the grunt work so businesses can make enlightened decisions about their next step in computing solutions."

There are circumstances, according to the Mobile Experts report, where owned MEC may have an advantage over time. In order to discern the best choice, the report lays out this scenario in great detail. Plus, the analysts behind the report are always available to subscribers for clarification.

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