Most discussions about technology transformation are dominated by the cloud. Until recently, transformation meant moving to decentralized platforms to handle the vast amounts of data generated by the business. However, computing needs are evolving beyond the cloud, and the next leap in software innovation is towards edge computing.

It is expected that by 2028, the majority of enterprises will use edge computing, and by 2025, more than 50% of enterprises will process data outside of traditional platforms. Hyperscalers have already reported declines in their cloud businesses in the first half of 2023. In other words, change is already here, and it's accelerating.

Why edge computing matters

Industry 4.0 has always been about automation, connectivity and robotics. These technologies are exponentially expanding possibilities across industries (including traditional industries such as manufacturing) and bringing huge improvements to the quality of daily life. What is less talked about, however, is the massive amount of power required to run the processing units behind these technologies.

As environmental damage reaches critical proportions, there is an urgent need to shift to sustainable industry practices, and the power centers we currently use are not efficient enough to process the data required for Industry 4.0.

It is estimated that by the end of the century, unless more efficient solutions are found, up to 20% of the world's electricity may be used for computing. This is where edge computing comes in. In fact, building an artificial intelligence and machine learning compatible market, edge computing will be worth $76 billion by 2031.

The business case for edge computing

(1) Real-time data processing

To succeed in today's competitive space, taking action on real-time data insights is critical, and cloud-based data processing is no longer fast enough. There is a growing need to perform computations at the exact point in time when the data was created, and this is where edge computing comes into play. Even a few seconds can make a difference when it comes to the results that AI/machine learning algorithms give us.

(2) Cost efficiency

Moving data to a cloud hosting center can incur significant operational costs, and the more data is generated, the higher these costs become. Edge computing eliminates the need for data movement, and it uses far less power and network resources than the cloud. Therefore, after the initial setup cost, it becomes a more affordable computing option.

(3) Enhanced security and controls

Edge computing marks the return of “on-machine” computing rather than the decentralization of the cloud. While this may come as a surprise to some, businesses are increasingly seeing the benefits of retaining full control of their data and establishing their own security systems. As cyberattacks continue to proliferate, having to move data to the cloud creates vulnerabilities, and edge computing eliminates this risk.

(4) Unleash the potential of remote devices

Edge computing enables devices and computers to process data at the "edge" of the network. The load on the network is thus reduced, so edge computing can work even in remote locations where connectivity may not be very good. As a result, businesses can gain timely insights from their devices to make smarter decisions, no matter where they are.

Manufacturing, in particular, can benefit greatly from edge computing. Modernization of the industry is long overdue, although artificial intelligence and robotics are

The key to the solution, but edge computing provides the foundation for it all to happen. With edge computing, manufacturers can build smart factories that receive data insights on the factory floor without having to wait for data to be returned from external facilities.

As a result, AI and machine learning can be deployed safely and quickly to complement human labor and decision-making. For example, in automotive manufacturing, robots can be trained to detect problems and respond in real time rather than waiting for commands. Of course, this will speed up manufacturing timelines and ensure accuracy every step of the way, allowing manufacturers to meet growing customer demand.

Summarize

Technology is advancing faster than ever before. The amount of data generated is already exceeding the capacity of current business networks, and edge computing will become a necessity sooner than anyone imagines. Businesses of all sizes should invest in edge computing facilities now and start enjoying the benefits of faster processing times, lower costs, and greater data security and autonomy. It’s an exciting time for the industry and the coming years may change the face of how things work.