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Telefonica's (TEF) VDC-Edge Solution Powers Edge Nodes in Seville

Zacks Equity Research
·4 min read

In an effort to bolster the advancement of new-age technologies, Telefonica, S.A. TEF recently unveiled an avant-garde solution, Virtual Data Centre Edge (VDC-Edge) service. This innovative platform is responsible for deploying an edge node infrastructure in the largest city of the Spanish autonomous community of Andalusia, Seville.

Backed by edge computing, the service accelerates data processing capabilities at low latencies, thereby facilitating customers with a streamlined edge networking infrastructure. Notably, the latest evolution comes as a boon to the Andalusian economy as the VDC-Edge service can be leveraged to not only create differentiated solutions but also boost competitiveness in various industry verticals, such as aeronautics and tourism.

It is worth mentioning that factors like cost optimization and automation are aiding the growing adoption of cloud and edge computing. Telefonica’s Virtual Data Centre (VDC) is one such solution that addresses these issues and eliminates the complexity of a traditional data centre. It creates a modernized infrastructure, which helps optimizing businesses with best-in-class virtualization technology.

The technology enables its users to make a seamless transition to the cloud environment with minimum risks. Precisely, the VDC-Edge is an enhanced version of the VDC. Courtesy of the proximity of VDC-Edge nodes to its end users, driven by Telefonica’s extensive fibre network, the future-proof infrastructure enables optical fibre to directly connect to mobile base stations. This results in reducing network delays, thereby providing reliable and ultra-fast access to the customers.  

Markedly, the revolutionary element behind this breakthrough solution, which is Edge Computing, coupled with Telefonica’s fast-tracked 5G deployments is likely to be the key catalyst for the fourth industrial revolution. Apart from catering to certain strategic sectors, VDC-Edge can be harnessed for real-time decision making on the basis of AI algorithm and medical imaging with augmented and mixed reality solutions among others.

The VDC-Edge does not require massive IT investments and therefore emerges as a cost-effective solution among its end users. That said, the deployment seems a strategic fit for not only enhancing Telefonica’s VDC services but also extending its infrastructure-as-a-service model for the betterment of Andalusian’s evolving business scenario.

Telefonica provides a comprehensive suite of service platforms for fast go-to-market launches. Its IoT connectivity platform is designed to address dynamic business requirements and enable an economical solution to improve business productivity. Over the past years, it invested heavily in the deployment and transformation of its network to provide seamless connectivity with enhanced capacity, speed, coverage and security.

With operations across 17 countries, the Spanish telecom company is capitalizing on the opportunities in the digital world through several growth strategies to enhance long-term prospects while experiencing a healthy traction in the smartphone market.

Telefonica currently has a Zacks Rank #3 (Hold). Shares of the company have plunged 40.1% compared with the industry’s decline of 13.3% in the past year.

Some better-ranked stocks in the broader industry are Cincinnati Bell Inc. CBB, Pinnacle West Capital Corporation PNW and Otter Tail Corporation OTTR, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Cincinnati Bell delivered a trailing four-quarter earnings surprise of 18%, on average.

Pinnacle West Capital delivered a trailing four-quarter earnings surprise of 27.2%, on average.

Otter Tail delivered a trailing four-quarter earnings surprise of 9.9%, on average.

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