As companies accelerate their digital transformation journeys, many discover that the cloud, on its own, isn’t the right fit for every business case. There are still instances where it makes sense to deploy computing power closer to the point where data is gathered and business processes are executed. With smarter companies deploying cutting-edge Internet of Things (IoT), artificial intelligence (AI), and analytics applications, more of these use cases are coming into focus.
These trends will drive significant growth in the edge computing market in 2023 and beyond. One recent market report forecasts that the global edge computing market will be worth $155.90 billion by 2030, growing at a compounded annual rate up until then. Cutting-edge AI integration into the edge environment is catalysing growth, according to the authors of the report. Here are four reasons to believe that 2023 will be a year of significant edge-computing adoption:
- Internet of Things use cases are maturing
Smarter devices and sensors are proliferating at the edge of company networks in environments as diverse as manufacturing, mining, retail, and even agriculture. We’re seeing companies innovate across IoT use cases such as precision agriculture, predictive maintenance, security, and more. As cars, factories, homes, farms, schools, offices, and other environments become smarter, there is a growing need to crunch rapidly through the data the devices gather and produce. It makes sense to process the data on the edge to avoid the latency and cost issues of sending it back to the cloud.
- AI breakthroughs
All the data companies collect from sensors, cameras, smartphones, and other IoT devices at the edge only become useful when we can harness it to drive automated business processes or to make smarter decisions. Hardware innovators and cloud providers have made substantial progress in creating machine learning and AI solutions for the edge that enable companies to make sense of data at an enormous scale. This means that companies can leverage sophisticated AI even in settings and applications where it would not be practical to use the cloud to process data.
- Compliance concerns are growing all the time
Knowledgeable companies understand that regulators, customers, and other stakeholders want to be assured that they are mindful of privacy, security, and regulatory concerns. With edge computing, companies can simplify compliance by anonymising and processing data in a secure environment, then deleting it when it is no longer needed. However, it is important to leverage solutions that can manage data holistically from creation to deletion across the edge and the cloud.
- 5G deployments are ramping up
With network operators continuing to accelerate the rollout of 5G networks, companies will be able to harness edge computing for a growing list of applications. The high-speed mobile networking technology promises better reliability and speed for handling large amounts of data collected from rapidly multiplying endpoint devices.
Balancing on the edge
Edge computing’s decentralised nature will add more complexity to companies’ digital transformation journeys. Working with a trusted partner with deep experience in DevOps, FinOps, and Cloud Security and Networking can help companies to navigate the risks and unlock the opportunities. Our knowledgeable team has years of experience in helping businesses to simplify cloud operations. Contact us to learn more about how we can guide your digital transformation programme.