5 Things Business Must Know About 5G

According to analysts, by 2020 there will be about 30 billion smart devices connected directly to each other in the world. All these plug-in devices – mobile phones, wearable gadgets, smart home appliances and everything else that includes plug-in sensors, actuators or microprocessors – will provoke an unprecedented increase in the amount of data transferred. By 2020, the predicted amount of such data will be 14 zettabytes. To compare the scales, we note that in 2009 the entire World Wide Web contained only a half-zetabyte of data.

One of the main “producers” of data will be connected cars. According to approximate calculations, they will generate up to 40 terabytes of data daily, which is equivalent to the amount of data transmitted when watching the movie “Jurassic Park” over and over more than 12,000 times. Such a volume of data will place an incredible strain on existing telecommunications networks. And since, according to forecasts, network traffic will increase by 400% in the next 5 years, the bandwidth of channels will have to grow by the same five times in the same five years, to cope with the increased load.

Here on the stage and goes 5G. The fifth-generation of mobile networks is usually described as the basis of this connected world, as they are able to provide a higher capacity for data transfer and support the operation of more connected devices at higher speeds, with less delay, and greater reliability.

However, the 5G technology is not just “another G”. The new technology is so significant and useful that the research firm IHS Markit describes 5G as a general-purpose technology (GPT). The number of technologies classed as GPT, as it is known, includes the technologies of book printing, internet, electricity, steam engine and airplane systems. All these discoveries and inventions had an intersectoral socio-economic impact and usually triggered the processes of large-scale changes in those industries on which they had an impact.

How will 5G change the way of life and work in different spheres? Let’s understand together.

5G Will Make Possible The Emergence Of The IoT

For many years now, we’ve only heard about plug-in devices that have the ability to exchange information, or about the so-called “Internet of Things“. 5G will be the technology that will allow billions of connected devices to gain in functionality. We at JeraSoft also call it “Intelligence of Things” to describe how smart nodes that provide connectivity and data exchange can improve performance, inter-machine communication (called the critical condition for the existence of future production technologies), resource optimization, and business predictability. Ultimately, this will help provide support for cognitive computing and artificial intelligence, through the widespread adoption of these technologies.

New Information Technologies

Information technology is already experiencing a period of large-scale changes. An analogy of it we have not seen since the acceleration of the work changes made possible through the introduction of personal computers in the 1980s. In infrastructure, convergence is increasing: servers, storage, and networks are combined with software solutions in one “box”. We are witnessing the accelerated adoption of cloud technologies and the appearance of stunning computing at extreme points of the network. They provide analytics in real time at the point where the data is generated. Because cloud technologies alone make mobile and the connected world possible, 5G will only accelerate and deepen their adoption. It is projected that by 2020, 88% of all data in the world will be stored in the clouds, and 60% of all consumer data (2.3 billion people) will also be stored there.

However, clouds will be more than just a store of information. They will become a home for complex analytical software that will allow people to receive new information and intelligence from data as it is generated. The cloud will also be protected by a specialized software security system, which minimizes the risk of data leakage.

Industries Transformation

The telecommunications industry is already feeling the 5G effect. In part, this is due to the amount of investment that is required to create an infrastructure for 5G networksю. In part due to how telecommunications companies benefit from their investments. Relevant debates about network neutrality have shown that customers of telecommunications companies can now opt to pay for traffic on high-speed networks.

Another sector – the health sector – will benefit from the incredible reliability of this connection. In particular for the needs of home monitoring of patients. The use of connectable portable devices to monitor patients will help hospitals save up to 40% of their funds. Companies providing utility services will be able to use smart networks for better balancing of energy resources in real time. And the automotive industry will be able to improve the performance of various systems in such areas as driver information, passenger entertainment, and general security.

The low latency inherent in 5G technology will provide real-time connectivity between vehicles and infrastructure. A reliable and permanent connection will open up the possibility of creating fully autonomous vehicles. 5G technology will contribute to a faster penetration of the augmented and virtual reality systems. It will happen because of the low degree of network latency inherent in this technology. It is a necessary requirement for turning these systems into practical tools for business.

Increased Competition

The arrival of new technologies also entails the arrival of new opportunities. The Internet has spawned internet publishers, bookstores have become virtual. The video consumed in the network has bypassed the television of the younger generation. And each of these new business models had a devastating effect on their traditional competitors. We can observe a new trend of the appearance of new players who actively uses the advantages of new technologies. And they drive out “traditional” competitors from the market.  For example, in the arrival of Uber in the taxi market, Coursera in education, Airbnb in hotel services.

Currently, business models have become less stable than in the past. They have become the subject of rapid changes, regular revision, and in a number of cases – direct destruction. Thus, the 5G technology, with its ultra-high speeds, low latency, and real-time connectivity, will stimulate industry. We are talking about the development of new business models and new types of competition.

New Communication Technology

Organizations will be able to use 5G technology to find new industry solutions and ways to improve the user experience. However, this will require harmonization of skills, know-how, and technology. Cooperation will be a key factor for the development of innovative projects. We can say that the cooperation between different companies will reach new horizons. For example, an e-health service provider with remote monitoring software wants to connect home patients to hospitals and health centers. It is likely to work closely with chip manufacturers to optimize software. Also, with a security company to ensure integrity and compliance with requirements. On the other hand, with telecommunication companies to search for network solutions. Finally, with integrators who have the experience to connect all of the above to a single whole package and solution.

As the pace of change accelerates to revolutionary proportions. New technologies like 5G are increasingly trying to change the rules of the game. So it’s time to evaluate, plan and prepare the future. To paraphrase Jack Welch, the retired CEO of General Electric, we can say that if the pace of changes occurring outside exceeds the speed of the changes that take place within you, you may be in trouble.