Centralised was yesterday – how edge computing is revolutionising IT

“Edge” refers to the network edge. In other words, the level at which the network connects with the end devices. If data is processed, analysed and stored directly near the place where it is generated, this is known as edge computing or fog computing – also referred to as edge processing. All these terms are considered synonymous and differ only in name. 

So, data processing no longer takes place centrally, but on an edge server at the edge of the network. This eliminates the long journey to and from the cloud, enabling faster communication between connected devices. Companies can therefore process data in real time, even without high-speed internet (5G / fibre optic).

Implementing edge computing offers several advantages for companies: 

• faster data transmission and lower latency
• higher data security during transmission
• improved network traffic management
• greater reliability in data transmission  

Edge computing operates via so-called edge devices (gateways). These small, energy-efficient devices are not located in a central data center somewhere within the company or with an external provider. Instead, they are placed close to the data source and connected via a network. Through this network, they communicate not only with each other, but also with the cloud.

The gateway collects all incoming data and stores it locally. Once stored, it filters the data and sends all relevant information either to a local server or to the cloud. It works significantly faster and uses less bandwidth than if all data were first sent to the cloud for processing (cloud computing). 

There are already several edge computing solutions from well-known providers: 

• Amazon (AWS IoT Greengrass / AWS Outposts)
• Microsoft (Azure IoT Edge / Azure Stack Edge)
• Google (Distributed Cloud Edge) 

Until now, cloud computing was the most widely used concept for this task. However, the Internet of Things (IoT) has fundamentally changed the way devices collaborate and communicate. With this technology, connected devices communicate with each other almost in real time.

These connected devices include, for example: 

• medical sensors
• point-of-sale terminals
• industrial PCs
• gateways
• intelligent cameras
• self-driving cars 

These devices generate a huge amount of data that can hardly be processed centrally anymore. That’s one reason why edge computing is so important! Edge computing is a key technology component of the IoT.

Cloud computing quickly reaches its limits, especially with regard to the following aspects: data storage, processing, and response speed. Of course, bandwidth or performance could be increased. However, this is often no longer sufficient to meet the high demands of rapid data processing by connected devices. These problems are ultimately solved by edge computing. 

It specifically targets the following issues: 

• Security: Suppose medical staff at a hospital send private patient data to a specialist within the same building via the internet. There is a risk that someone could intercept the data. However, if this data is stored at the network edge, security increases and the risk is reduced.
• Latency: The demands within individual industries are increasing rapidly. This is why more and more sectors are implementing solutions that require fast analysis and response. Cloud computing alone can no longer meet these demands – latency is simply too inefficient. This is due to the distance from the data source within the network. This causes delays, which can negatively impact workflows, for example. Cloud-edge networks operate much closer to the source, reducing latency.
• Artificial Intelligence (AI): With regard to artificial intelligence (AI), companies need data exactly where it is generated. This allows them to receive information faster and use data that previously remained untapped. A necessary step to gain valuable insights more quickly.
• Connectivity: Cloud computing cannot function without a continuously active high-speed internet connection. Edge computing, meanwhile, uses various network options, such as 5G. A network that offers companies low latency and fast internet connectivity. This allows data to be transmitted seamlessly beyond the network edge. A permanent internet connection would be essential, for example, for intelligent security solutions like CloudEdge. Without a reliable connection, security gaps could occur. But what exactly is CloudEdge? CloudEdge is an intelligent security solution by Hangzhou Meari Technology Co. Ltd. Through this system, a company can monitor its premises using smart cameras.
• Bandwidth: In the future, the number of edge devices and data transmissions within companies will increase. This could lead to latency problems with cloud computing, which could be compensated by increasing bandwidth. However, this would result in immense additional costs that companies can avoid with edge computing. If data can be transmitted, stored and analyzed directly at the network edge, companies do not need to provide additional bandwidth. 

Edge computing does not aim to completely replace cloud computing. At least not yet. Instead, it is designed to solve the previously mentioned problems – for example, to enable autonomous driving or to improve corporate security through smart cameras. 

It achieves this by bringing the computing power and storage capacity of the cloud closer to the devices or machines. This allows systems to communicate with each other much faster and more easily. This, in turn, enhances the functionality of the cloud and creates a seamless hybrid computing environment. So, edge and cloud computing work much more hand in hand.