Oct 26, 2020

Capgemini: Synergy needed for 5G rollout

Janet Brice
4 min
Industrial companies could apply for private licences if telcom operators are slow at rolling out 5G, reveals a new report from Capgemini...

A clearly defined road map and synergy is needed for industrial companies and telcos to pave the way and benefit from a 5G rollout, according to a new report from think tank, Capgemini.

Although industrial companies are keen to adopt the latest standard of cellular networks within two years to boost their connectivity the report highlights a disparity with the timeframe given by the telco players who will need much longer to rollout out their 5G features.

“Telecom operators believe that it will take at least five years for large-scale adoption of features such as guaranteed quality of service or network slicing,” reports Capgemini.

“These are the areas that hold rich potential for enterprise applications. This slow progress, as well as an appetite for greater autonomy and security, are creating a situation where industrial companies are considering applying for their own private licenses.

Call for more collaboration

The report calls on industrial companies and telcos to collaborate to exploit the potential of digital transformation in the future. Experts believe 5G has the potential to solve many of the connectivity issues faced in a range of industries. A total of 75% of Industrial companies polled considered 5G to be the key enabler of their digital transformation.

“They need to identify the areas where 5G can add value, both in the immediate and longer term, and design the right implementation road map. By working closely, the two sides can avail the full potential of this transformative technology,” highlights the report titled: 5G in industrial operations.  

Consultants Capgemini surveyed 806 executives from industrial companies with revenue greater than $500 million in FY 2017 for their research paper.

According to their findings one third of industrial companies are planning to apply for 5G licences. A total of 47% of these organisations revealed they are planning to have a dedicated network and would consider applying for a private license. 

The report shows larger organisations believe private networks will offer more autonomy, security and speed. However, Capgemini points out that not all countries will offer a regulatory environment in which this is possible and telcos will still have a role in building and operating dedicated 5G networks.

“We need our own 5G frequencies so that we can determine the security and availability of the networks,” said BASF’s Matthias Fankhänel. “We want to set the rules of the game and be able to control the 5G network ourselves.” 

BASF has placed a bid for a private 5G licence for its 10-kilometer square plant in Ludwigshafen, Germany. It aims to leverage the speed and reliability of ultra-fast 5G to increase the number of automated guided vehicles in use and make those vehicles faster.

Transformative potential of 5G

“Our research shows that industrial companies believe in the transformative potential of this technology and are willing to quickly adopt it once it becomes available,” say Capgemini.

The 5G technology will offer a wide variety of use cases for organisations ranging from shop floor to supply chain to product and service management. “It will support the reliable, secure, real-time, high-speed transmission of data, transforming the potential of a multitude of applications.”

The aim of this research was to help industrial companies identify the potential use cases for 5G and the optimum path to deliver. 

The research report looks at four key areas:

  • Industrial companies’ appetite for speedy 5G adoption 
  • Why potential delays in 5G deployment are leading companies to consider applying for 5G licenses and how this might affect telecom players
  • Potential manufacturing use cases that 5G offers 
  • Key recommendations for industrial companies as well as telecom players

According to Capgemini, companies should think carefully before proceeding down a path and need to consider the following factors: 

  • Strategic fit: Flexibility to develop customised solutions, control over the network and security. For a public network, the value lies in the flexibility to scale up the capacity and minimal capital expenditure. 
  • Capabilities: To run a private network, you will need to be able to operate and maintain networks – either by outsourcing or in house. 
  • Total cost: Organisations need to carefully evaluate the total cost of both implementation models. Initial capital expenditure is required to set up private networks. However, the accumulated, multi-year cost of industrial solutions over public networks might be even higher than establishing a small-scale private network.

One key conclusion from the research reveals that although there are still uncertainties around 5G, companies are willing to pay a premium for the benefit of this technology. 

“This is something that telcos underestimate. For example, 72% of industrial companies say they would be willing to pay a premium for Enhanced mobile broadband speed and increased capacity but only 54% of telcos think there is an appetite for paying a premium,” outlines the report.

For more information on business topics in Europe, Middle East and Africa please take a look at the latest edition of Business Chief EMEA.

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Jun 18, 2021

GfK and VMware: Innovating together on hybrid cloud

3 min
VMware has been walking GfK along its path through digital transformation to the cloud for over a decade.

GfK has been the global leader in data and analytics for more than 85 years, supplying its clients with optimised decision inputs.  

In its capacity as a strategic and technical partner, VMware has been walking GfK along its digital transformation path for over a decade. 

“We are a demanding and singularly dynamic customer, which is why a close partnership with VMware is integral to the success of everyone involved,” said Joerg Hesselink, Global Head of Infrastructure, GfK IT Services.

Four years ago, the Nuremberg-based researcher expanded its on-premises infrastructure by introducing VMware vRealize Automation. In doing so, it laid a solid foundation, resulting in a self-service hybrid-cloud environment.

By expanding on the basis of VMware Cloud on AWS and VMware Cloud Foundation with vRealize Cloud Management, GfK has given itself a secure infrastructure and reliable operations by efficiently operating processes, policies, people and tools in both private and public cloud environments.

One important step for GfK involved migrating from multiple cloud providers to just a single one. The team chose VMware.

“VMware is the market leader for on-premises virtualisation and hybrid-cloud solutions, so it was only logical to tackle the next project for the future together,” says Hesselink.

Migration to the VMware-based environment was integrated into existing hardware simply and smoothly in April 2020. Going forward, GfK’s new hybrid cloud model will establish a harmonised core system complete with VMware Cloud on AWS, VMware Cloud Foundation with vRealize Cloud Management and a volume rising from an initial 500 VMs to a total of 4,000 VMs. 

“We are modernising, protecting and scaling our applications with the world’s leading hybrid cloud solution: VMware Cloud on AWS, following VMware on Google Cloud Platform,” adds Hesselink.

The hybrid cloud-based infrastructure also empowers GfK to respond to new and future projects with astonishing agility: Resources can now be shifted quickly and easily from the private to the public cloud – without modifying the nature of interaction with the environment. 

The gfknewron project is a good example – the company’s latest AI-powered product is based exclusively on public cloud technology. The consistency guaranteed by VMware Cloud on AWS eases the burden on both regular staff and the IT team. Better still, since the teams are already familiar with the VMware environment, the learning curve for upskilling is short.

One very important factor for the GfK was that VMware Cloud on AWS constituted an investment in future-proof technology that will stay relevant.

“The new cloud-based infrastructure comprising VMware Cloud on AWS and VMware Cloud Foundation forges a successful link between on-premises and cloud-based solutions,” says Hesselink. “That in turn enables GfK to efficiently develop its own modern applications and solutions.

“In market research, everything is data-driven. So, we need the best technological basis to efficiently process large volumes of data and consistently distill them into logical insights that genuinely benefit the client. 

“We transform data and information into actionable knowledge that serves as a sustainable driver of business growth. VMware Cloud on AWS is an investment in a platform that helps us be well prepared for whatever the future may hold.”

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