One of the interesting consequences of the rise of the Internet of Things is the way it is driving network edge computing.

By this we mean the placement of computing and data analytics equipment as close as possible to where the data is originating. Data processing can be done faster – achieving what we call lower latency – and more cost effectively by keeping the computing process local.

Chorus has about 600 telephone exchanges located around the country and they have the best possible location for data transmission given they tap directly into the fibre network. Small cell sites, for example, could share network processing capability by locating one piece of equipment in a nearby exchange.

With so many exchanges, we can provide widespread options to ensure greater data protection and resiliency.

Several years ago we set up our first ‘data centre’ in our Mt Eden exchange to test this concept. Pre-built cabinets were fitted into a room and they’ve since been filled with computing equipment. The demand is also evolving and we are seeing a diverse mix of wholesale aggregators and IT service innovators begin to emerge. That’s given us the confidence to expand the data centre concept to several more exchanges in Auckland and Christchurch.

An extension of this data centre concept is fibre-to-the-desktop.

The traditional method of delivering network services to institutions like offices, or even schools, has been to install office electronics and servers in communications rooms on site.

But when you have a reliable, high capacity transmission service like fibre, perhaps that equipment no longer needs to be on site. It could, for example, be located in a nearby exchange building and a third-party wholesaler might share the cost of that equipment across a range of users. All you need is a reliable fibre connection from the exchange-based equipment to the screen on your desk.

This concept is just starting to emerge, but the potential business benefits seem clear and we are expecting fibre-to-the-desktop solutions to gain momentum as fibre becomes more widespread in other developed economies.