Monday, January 10, 2022

Edge Computing Matters as Cloud Architectures Shift

Nobody ever is surprised about cloud spending growth, either public, private or hybrid. Soon we’ll add edge computing to that list, though “edge computing” service revenues will remain a fraction of total cloud computing volume. 


As always, though, edge computing matters because it is a new revenue growth driver of some size, even if it initially represents less sales volume than does cloud computing. Also, if, as expected, edge becomes an integral part of the cloud computing fabric, there are strategic reasons for cloud computing services providers to incorporate edge capabilities. 


That is almost certainly the case if new use cases based on ultra-low latency and high computing requirements become popular. Even when the goal is ultra-low latency processing, the additional impact is to reduce data network transit. 


source: Researchgate 


That might be a corollary benefit of edge computing: reducing hairpinning. 


Right now, it is difficult to estimate actual retail value from edge computing services, as forecasts combine sales of infrastructure (hardware, software) with the value of edge computing services actually bought by customers, which distorts our understanding of the service provider market. 


Software as a service and infrastructure as a service generally lead in terms of end user sales volume, for cloud computing as a whole. At least for the moment, it seems that will be the likely pattern for edge computing as well. 


source: Gartner, ZDnet  


source: I-Scoop, Gartner 


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