By 2035, 5G is expected to add over $13 trillion to the global economy and nearly 23 million new jobs (Qualcomm Study: ‘What is 5G’). Businesses need to prepare for the possibilities this next-generation connectivity will offer.
Why it matters: The fastest to embrace these changes will gain a competitive advantage over their competition. This next-generation network connectivity will reinvent the world of business, automation, telecommunication, gaming, and a host of other industries.
Who will be affected: The transformative power of 5G is so great that virtually no industry will go unaffected. A February 2021 study by Accenture, titled, “The Economic Impact of 5G in the United States Economy” cited 5G's impact by industry:
- 30% cost savings in transition to remote-home based models
- 50% increases in sales growth combined with human-focused processes and XR visualizations due to 5G’s in-store video streaming experiences
- 20%-30% overall productivity gains
- 50% improvement in assembly efficiency
- 20% increase asset life
- 90% defect detection
- 80% reduction of vehicle accidents
- $3.6 billion savings in repair costs
- 25% reduction in traffic
A Target Rich Environment
Be part of the success platform: Cloud, edge, IoT, and cybersecurity - to name just a few- are the new frontiers that fulfill the 5G mission. The IT ecosystem is ground zero for the order of magnitude change 5G promises. OEMs, resellers, managed service providers, and cybersecurity vendors and experts are shifting the focus of their products and strategies to maximize the potential 5G offers.
Coordinating the partnerships and resources to take advantage of this $13 trillion global economic benefit is significant work. Tech Data is at the heart of the technology ecosystem with a dedicated approach to uniting IT solutions that deliver business outcomes today and unlock growth for tomorrow.
“5G” refers to the fifth generation of cellular communications. 1G technology began in the early 1980s, launching the mobile communications revolution. Despite 1G’s poor coverage, low quality sound and the phone’s hefty price tag, millions subscribed; for the first time, consumers had real-time mobile connectivity at their fingertips. Speed, accessibility and features increased with each new generation, as the gap between 1G and 5G has become exponential.
- Analog, operated at a speed of 2.4Kbps
- Limited to domestic calls only
- Easily hacked
- 10Gbps, 5G is 20x faster than 4G (peak) and 10x faster than 4G (average)
- 5G latency rate = 1 millisecond
5G’s most notable features are speed, bandwidth and low latency. For example, downloading a high-definition film over a 4G network takes 50 minutes on average – on 5G, it takes just nine. Speed references can be misleading as connectivity results are subject to the limitations of the device and network.
5G’s bandwidth is ‘partitioned’ to serve specific use cases within three main categories. By dedicating bandwidth based on usage criteria, speed and latency are improved by removing competition from other processes.
Three main types of connectivity services:
Enhanced Mobile Broadband (eMBB): Supports stable connections with very high peak data rates, to make smartphones better, enabling users to experience new immersive technologies, such as VR & AR.
Mission-Critical Communications (URLLC): For industries requiring ultra-reliable, low latency links for ‘can’t fail’ services such as remote control of critical infrastructure, vehicles, medical procedures, factory automation.
- Massive Internet of Things (mMTC): For connecting low-power, low-complexity devices such as smart meters and environment sensors.
Illustration by Ana Schafer, Qualcomm Network Developer Blog, “Enhanced Mobile Broadband — 5G Innovation for consumers?”
When you think about the marketplace advantages of 5G, think eMBB. Compared to the current generation of wireless, it’s a vision of 100x traffic capacity and 10x experienced throughput, with 1/10th the latency (*).
(*) Latency is the delay between sending and receiving information. 4G latency is 200 milliseconds, not far off the 250 milliseconds it takes for humans to react to visual stimuli. The 5G latency rate is significantly lower: at just 1 millisecond.
- Autonomous vehicles
- Remote surgeries
- Remote “touch” using haptic capabilities
- Enhanced VR and gaming experiences
- Precision drone control and high-definition video
While 5G promises to deliver new levels of performance connecting people, places, and ‘things,’ the transition to a fully native 5G experience still has some hurdles to overcome. Infrastructure cost, 5G-ready devices, and the security of 5G networks are currently the most pressing. A 2019 report by AT&T on the state of 5G security readiness found that enterprises are significantly behind on expanding their virtualization and software-defined networking capabilities, and security.
Below are a few concluding near-term milestones predicted by the growth of 5G. Included are links for additional information from Tech Data – resources to help you plan your success journey along the 5G superhighway.
The Internet of Things is quickly becoming the Internet of Everything– including behaviors. The collection and use of data to drive behaviors is called the Internet of Behavior (IoB). As organizations increase the amount of data they capture and how they combine and use it, the IoB will continue to affect how organizations interact with people. Click here to learn about Tech Data’s IoT solutions and how they can simplify IoT for your team and your clients.
By 2025, edge computing is expected to comprise 75 percent of all enterprise-generated data (Gartner).This expansion –at just 10% in 2018– underscores the changing nature of work, and the changing nature of the workplace. Tech Data’s Edge solutions team can help your customers reduce costs, digitize their workplace and manage the cultural shift. Click here to find out more.
5G technology will bring substantial improvements to the cloud computing world. The future of mobile cloud applications -from healthcare to banking and beyond- will see it become more efficient and widely used with the widespread rollout of 5G technology. Tech Data has the tools, resources and people to simplify the delivery of cloud solutions to IT solution providers. Click here to explore the company’s suite of cloud enablement solutions.
Data centers will require significant changes to accommodate and enable 5G. Because AI and machine learning are table stakes for the vast amount of data being processed on the edge, there will be a shift from cloud-scale data centers towards localized, low-latency services (Datacenterdynamics.com). With more than 5o years of solutions expertise, Tech Data helps channel partners deliver a broad range of proven and efficient data center technologies to their clients. Click here to find out more.
A survey of 704 cybersecurity professionals from around the globe revealed that only 16% have started preparing for the mainstream wave of 5G deployments (AT&T 2019 Cybersecurity Report). With so many seemingly unprepared, Tech Data’s resources can help partners step up with solutions to thwart attacks and keep customers safe. Tech Data’s technology, services and enablement solutions, along with its security portfolio and world class Cyber Range, helps customers understand the growing threat from bad actors looking to steal information and cause harm. Click here to find out how Tech Data can help.
To be part of 5G’s success tomorrow, start preparing today
Every aspect of life, from medical to manufacturing, to gaming and travel will be infused with 5G-enabled functionality. The steady proliferation of virtual reality, augmented reality, AI, and machine learning, will educate, enable, transport and support us. 5G’s infrastructure is still in its infancy and some of this is underway, but the revolutionary impact is something we have yet to realize.
As the saying goes, “preparation is the key to success.” Tech Data’s leadership in the IT ecosystem and its end-to-end portfolio of solution, help partners prepare and unlock growth for the future. Contact us at techdata.com or click on any of the links above for more information.
About the Author
Steven Kelley is a senior marketing specialist for Tech Data in Tempe, Arizona. In his role, Steve authors and contributes articles about next-gen technologies and market trends to Tech Data’s corporate blog, Authority, as well as the company’s partner newsletter, The Power of Partnership. Prior to joining Tech Data, Steve managed the marketing, communication and PR duties for a range of businesses in the aviation, defense, energy, hi-tech, and healthcare industries. Steve’s background and profile can found on LinkedIn