Analyst Applauds Intel's 5G Strategy With Platforms That Build Out Core Networks

Intel’s announcement Monday of its Xeon Scalable platform for 5G networks (see 2002240035), and other core network infrastructure products, positions the company “as a premium supplier of compute platforms that need to be upgraded to make 5G a reality,” wrote Jack Gold, principal of J. Gold Associates, Tuesday. Intel “has wisely chosen to refocus its 5G efforts” away from making high-volume low-margin modems “that ultimately lose money” and instead toward high-power computing platforms that can power the build-out of core networks that will be enabled by 5G connections, said Gold. The analyst expects a surge in workloads deployed at the edge of the network as operators look to host solutions to reduce latency, increase performance and offload the "networking bottleneck of sending everything into the cloud" -- while boosting revenue with new service offerings. Intel expects to have a 40% share of the millions of next-gen base stations running on Intel Architecture in the next 1-2 years, he said, noting “Intel needs to have partners that produce systems built on top of their components to make this a winning strategy.” The company has solid partnerships with most cellular infrastructure players that have been developing equipment based on the Intel Architecture for years, he noted. As networks move to more mobile edge computing, “there is no doubt that compute power will be a key component of network operators and their equipment providers.” Citing expected “massive growth” from edge computing in the next few years, Gold said “Intel will be playing a significant role in 5G -- just not in the area many thought it should be in."