World Wide Technology reveals Cloud as the top 5G investment
New Research commissioned by World Wide Technology (WWT), a global technology solutions provider with US$14.5bn in annual revenue, revealed cloud computing as the top category for 5G investment by 72% of VCs and investors. The next highest sectors for 5G investment came out as smart mobility at (70%), media and entertainment (56%) gaming (44%) and AR/VR (42%).
From the 100 VCs and investors interviewed, 92% of respondents are invested or planning to invest in 5G dependent companies.
When asked ‘What sector is most likely to be disrupted as a result of 5G technology?', one investor from the report was quoted as saying: "Cloud computing will reduce the need for storage hardware, creating thin clients, which outsources the burden of storing and even computing intensive tasks to companies providing cloud computing services. 5G will be the facilitator for fast access to the cloud service providers.”
Spending on 5G to accelerate in 2022
According to WWT estimates, the overall 5G investment figure will end up being substantial. Funds of those participating in the latest research will see their spending hit US$59bn on 5G this year, with expectation to see their investment grow to US$94bn within five years.
There is confidence that the investment will pay off, with 76% predicting an above average return on their 5G investments over the next 6-10 years, according to WTT.
Victor Holmin, Director of Discovery and Innovation at World Wide Technology, stated that: “Now is the time to invest in the foundational technologies of 5G. Our research has clearly shown that there is clear excitement in 5G among investors - and that these five sectors in particular are ripe for growth. Each of these sectors will require high-speed, secure infrastructure with significant processing capability at the edge of the network in order to thrive.”
“Service providers need to make the investment in foundational technologies, such as Edge, and look to build a platform that will enable them to deploy services which can build the promise of 5G into a reality,” said Holmin.
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