Enterprises should actively be establishing their Edge partnerships right now so they can accelerate Digital Transformation and open new revenue streams, says Simon Michie, CTO, Pulsant. He discusses the potential of Edge Computing technology and why enterprises should be making the most of it.
The relocation of computing power close to where data is generated and used is a major advance for everyone. Attempts to underplay the significance of Edge Computing does nobody any favours. Enterprises buying this line of argument risk decelerating Digital Transformation, missing out on innovation while losing commercial opportunities to competitors.
Edge Computing means businesses outside the main urban areas where the hyperscalers are situated have access to low latency digital services, regardless of their location, enabling them to use a vast array of new SaaS applications. The establishment of Edge data centre networks and the rollout of 5G connectivity makes this possible. Companies providing online services or building applications will have access to new markets and a platform for higher levels of performance and innovation. The range of use cases and business opportunities is almost limitless.
Statista estimates the worldwide Edge market will grow to US$250.6 billion as soon as 2024, accelerating Industrial Internet of Things (IoT) and meeting demand for hybrid models of working in every size of organisation. By 2030, the number of devices connected to the Internet could reach 125 billion according to IHS Markit.
Edge-enabled applications
This dramatic geographical growth on the IoT, Artificial Intelligence (AI)-driven automation and analytics, real-time multi-person gaming, remote health technologies and automated trading depends on low latency. Augmented Reality, Virtual Reality and most Industry 4.0 IoT implementations require latency as low as 1ms to 10ms.
Similarly, the need for low latency and processing of high volumes of data in AI and Machine Learning applications excluded many regional locations from their immense benefits before the Edge. Now, however, once AI models are trained on the data, businesses deploying AI applications can process large amounts in an Edge data centre close to their location, reducing the costs of backhaul to the main hyperscalers’ hubs.
This, for example, opens the door to Industrial IoT applications such as digital twin technologies that reshape oil, gas and mineral extraction processes, logistics operations and manufacturing.
The need for a nationwide Edge platform
However, the success of this major shift in computing capability depends on certain key elements. These include a functioning ecosystem that encompasses the telcos and communications service providers, along with the public cloud companies and specialists in microservices, containerisation, virtualisation and related fields. Above all, it requires a scalable national network of Edge data centres to ensure every end-user, regardless of location, has low latency, high-bandwidth connections to their Edge workloads and their data in the public or private cloud.
Situated between the on-ramp to the public cloud and network-to-network interfaces with the telecoms providers, Edge data centres enable the hyperscalers to expand coverage. They are also well-equipped to facilitate the trend for hybrid and multi-cloud models that many enterprise customers deploy to gain flexible access to the cost, performance and security advantages of different providers and environments.
The bottom line is that through Edge data centres, businesses can easily employ hyperscale cloud vendors to power their growth, their entry into new markets and delivery of new services to almost anywhere on the planet. Simultaneously they fully benefit from global advances in analytics, AI, Machine Learning and business application innovation.
How the Edge ecosystem is taking shape
We can see how the Edge is developing with telecoms and hyperscalers starting to form partnerships with existing Edge Computing platforms. Last year, for example, Telefonica Germany entered partnerships with AWS and Ericsson to virtualise its 5G core network. The purpose is to enable fast integration of new applications, removing the need for time-consuming hardware setups and reducing cost. Customers need only a 5G radio network with antennae.
For the public cloud vendors, it has become vital to partner with current Edge platform providers who have ubiquitous low latency coverage and high-speed fibre connections between centres. The more advanced Edge platforms achieve sub 5ms latency, regardless of location. The Edge networking approach employed by these platforms spreads the load across several regional data centres, not only processing data closer to each end-user but also reducing the congestion in backhaul that undermines performance.
What enterprises should look for
Enterprises looking seriously at the Edge need to ensure they partner with a national platform that has a good geographical spread of sites that are purpose-built, and which maximise coverage in any area. Edge data centre networks must have high-speed connectivity to cloud services so transfers of data to the central hub are seamless, with route diversity to ensure resilience. And as more enterprises use Edge-reliant applications, there must be sufficient capacity to meet future demand for bandwidth. Partnering with one provider with a nationwide network of cloud and data centres, rather than a collection of multiple providers will also deliver benefits in terms of security and remove the headache of integrating complex IT services for enterprises.
The full range of Edge opportunities
For service providers and solution-builders, the advent of Edge Computing is the doorway to new markets and the ability to create new products and deliver higher levels of service that increase revenues substantially. Independent software vendors all around the world will have millions more customers and adopt new subscription and delivery models. They can orchestrate the network functions and computational infrastructure needed for secure delivery to their end consumers. Content providers will be able to offload from their central servers, transforming access and efficiency.
We can already see the exciting enterprise use cases supported by 5G-enabled Edge Computing. Remote monitoring and diagnostics in healthcare along with 3D medical imaging will be possible, while the availability of low-cost, easily-deployed sensors will extend the IoT. In manufacturing, automated, short-run, high-precision customisation of high complexity will be possible in new locations. In port management and logistics, Edge Computing stands to deliver far higher levels of automation and efficiency across expansive campuses and entire supply chains.
This vast potential of Edge Computing is available to enterprises if they form the right partnerships with dedicated Edge providers that have the right technology and the right ecosystems in place. With a network of strategically-sited data centres and seamless, high-bandwidth, high-speed connectivity, the right Edge Computing platform will transform the fortunes of its enterprise customers.
