5G and the edge: the key trends shaping computing in 2022

 In McKinsey's annual analysis of the trends shaping computing in 2022, two key technologies stand out: 5G and edge technology. The report's authors examine the technologies that promise to be most influential in delivering greater innovation Process automation and virtualization were ranked as the most important enterprise computing forces for the coming year. 5G networks and computing follow as global forces driving new innovations and business types. "By 2030, high-band or low- or medium-band 5G will cover 80 percent of the world's population, and enhanced coverage and long- and short-range connection speeds will enable new services such as autonomous driving, business models such as connected services and next-generation customer experiences such as real-time virtual reality," said McKinsey analysts. Vertical markets at the edge According to analysts, the implementation of the most promising use cases in just four industries (mobile, healthcare, manufacturing and retail) could add $1.2 trillion to $2 trillion to global GDP by 2030. This next-generation wireless connectivity "supports a 100-fold increase in the number of simultaneous connections while increasing speed (100 times faster than LTE/4G) and reducing latency and reliability (99.99 percent improvement from 20 milliseconds to less than 1 millisecond)." The analyst added that the rise of 5G enhancements represents the convergence of 5G networks and the Internet of Things "to enable faster connections over longer distances, with exponentially faster download speeds and near-zero latency." "Greater network availability and capabilities will drive a wide range of transformations in business, from the digitization of manufacturing - through wireless control of mobile tools, machines and robots - to decentralized energy delivery and remote patient monitoring. " The ultra-high-speed connectivity enabled by 5G also "supports the creation of new services and business models associated with sensor-smart products, resulting in new value chain offerings - such as predictive services, augmented intelligence services," the analysts said. This enhanced connectivity also "creates the potential for enterprises to personalize products more seamlessly across channels and create a higher customer experience. For example, in terms of mobility, IoT sensors and near-global coverage can help manufacturers capture vehicle signals, monitor the condition of every system in the vehicle and notify owners to schedule repairs before a failure occurs, thereby improving vehicle durability and longevity. " Related to 5G, edge computing represents the next force shaping enterprise computing in the coming year. This is particularly relevant to new applications such as artificial intelligence, according to McKinsey analysts. "The growing computing power of edge devices - often defined as hardware that controls the flow of data between two networks - will allow artificial intelligence to run locally," they noted. "For example, when it automates processes and tasks or optimizes warehouse and logistics networks, it can achieve low latency in these applications while maintaining central control when the edge device is connected to a central cloud-based node." Cloud and edge will converge "to help enterprises move computing power further to the edge of their networks - enabling them to access devices that require large amounts of data in more and more remote locations with less latency, and accelerate decision-making for advanced analytics on demand. This trend will help companies increase speed and agility, reduce complexity, save costs and strengthen cybersecurity defenses."