Data center Frontier special report: ecosystem & the edge

Edge computing is an expansion of cloud infrastructure that moves data collection, processing and services closer to the point at which data is created or used. It is the fastest-growing segment of the cloud category with the total market expected to expand 37% annually through 2027, according to Grand View Research.

The Linux Foundation estimates that the global power footprint for infrastructure edge deployment will grow from 1 GW in 2019 to over 40 GW by 2028.

Edge computing is also the subject of many misconceptions, however, led by the belief that its principal value is to manage intelligent devices like cameras and sensors. That is only one scenario; the potential to fuel digital transformation is much greater.

The bigger picture sees edge as an extension of cloud hubs and corporate data centers into regions and applications that can’t be served adequately by today’s cloud infrastructure. That opens up a host of new business opportunities.

A new breed of Transaction

Distributed cloud infrastructure enables new types of transactions that are impractical today. Most of these center on partner ecosystems that develop around edge data centers. A few examples are:

• Streaming video services in the cloud can interconnect with content delivery networks near the edge for caching and last-mile delivery. Streaming video can be delivered that’s customized to the device level.
• E-retailers will tap into local networks of suppliers, order fulfillment companies, warehouses and delivery networks to enable just-in-time delivery and tracking.
• Healthcare insurers entering a new region will use interconnection to link up to local care providers, transportation networks, equipment providers and pharmacies to guarantee quality service delivery.
• Package delivery services will enter new markets by interconnecting with regional logistics firms and transportation fleets.
• Green energy providers will find contractors, local generation facilities and even drone operators to install, inspect and maintain equipment.
• Real-time ad brokers will customize messages to local languages and cultural preferences.
• Sensor-enabled predictive maintenance of equipment in the field will enable businesses to identify problems based on sensor readings and dispatch repair crews before equipment fails.