Friday, March 29, 2019

Edge Computing Economics Driven, in Part, by Sheer Processing Volume

Sometimes quantity becomes qualitative change. Perhaps the classic example is the change of state of water as it is heated or cooled. At some point, a small accretion of temperature changes results in a quantum change of structure.

In the same way, the sheer volume of internet of things data to be analyzed will create new imperatives for analysis and bandwidth.

By 2022, 75 percent of enterprise-generated data will be created and processed outside the traditional centralized data center or cloud, up from less than 10 percent in 2018, according to Gartner.

Even when speed of response is not an issue, it will make more sense to process data locally   rather than sending it across the wide area network, as it will save operating expense.

IDC research predicts 45 percent of IoT-created data will be stored, processed, analyzed, and acted upon close to, or at the edge of, the network within three years (2022 or so)  and over six billion devices will be connected to edge computing solutions.


The point is that the increase in IoT sensor data, especially bandwidth-intensive data, will create new economics for local processing and analysis, compared to shipping data out to the cloud for analysis.   

The business case for local processing (on-site enterprise or edge data centers) will get better as the volume of data to be analyzed grows exponentially. So even if ultra-low latency remains the unique driver for edge computing, the practical concerns of WAN bandwidth charges will create equally-strong financial drivers for local processing.



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