In today's competitive landscape, the right technology is critical for growth and efficiency. For years, cloud computing has offered businesses robust tools for data processing and storage. However, the very centralization that makes the cloud so valuable can also create challenges, including rising costs, latency issues and a dependency on constant connectivity. 

As a result, business and IT leaders are increasingly exploring edge computing. Consider the benefits, challenges and key considerations that help leaders determine if it’s the right fit for their business.

Understanding Edge Computing 

Cloud computing offers unparalleled storage, processing power and a suite of advanced services. However, as businesses become more reliant on the cloud, they also face the challenge of rising costs and the limitations of a centralized model. For many, the monthly bills for these services are a major expense, especially for organizations that handle large volumes of data.

This is where edge computing comes in. It is a decentralized computing paradigm that brings computation and data storage closer to where the information is created. Instead of sending it all to a centralized cloud for processing, edge computing performs most of that work on-site, at “the edge” of the network. 

The Advantages of Edge Computing 

By moving processing from a central cloud to the local edge, businesses can expect to gain the following benefits:

• Reduced cloud costs: Some organizations pay over $1,000 per month for cloud computing. By processing data locally, organizations can decrease the amount of information they need to send to the cloud, leading to substantial savings on storage and bandwidth.
• Higher speeds: Since data is processed closer to its source, organizations receive insights more quickly. For use cases that require real-time responses, such as Internet of Things (IoT) devices or autonomous vehicles, fast processing is essential.
• Improved reliability: Edge computing’s robustness and stable internet connection can be a game-changer for industries, like oil and gas, that operate in remote locations or environments with spotty connectivity.
• Increased portability: Modern edge computing hardware is smaller and lighter. High-performance computing can be deployed in the back of a truck or even carried in a backpack.

Edge computing handles immediate, time-sensitive tasks, creating a more balanced and efficient IT ecosystem.

The Challenges of Edge Computing 

Edge computing is not a fix-all for every business. Understanding possible hurdles is the first step toward making a well-informed decision. These are the challenges that leaders must weigh.

Increased Security Risks

Centralized cloud environments allow for a concentrated security effort. In an edge computing model, the security perimeter is dissolved and expanded. Every device becomes a potential entry point for malicious actors. Securing hundreds or thousands of distributed devices is more complex than securing a single data center. A cybercriminal could use a compromised item to feed inaccurate data into the system or provide a backdoor into the core business network.

Incomplete Data

Local data processing is a key feature of edge computing, but it can also be a drawback. When information is processed and analyzed at the edge, it may not always be sent back to a central repository. This can lead to data silos, where information remains isolated on individual devices. An organization may be left with an incomplete understanding of its overall operations, which can hinder large-scale analytics and decision-making.

Hardware and Maintenance Costs

While edge computing can reduce ongoing cloud costs, it often requires a greater up-front investment in hardware. The devices at the edge need to be powerful enough to perform meaningful computation and have sufficient storage. This capital expenditure for hardware can be a significant consideration. Furthermore, managing, maintaining and updating a distributed fleet of devices can be more costly than managing a centralized cloud infrastructure.

These challenges demonstrate the importance of strategic implementation. Businesses must invest in robust security protocols and design a data strategy that avoids silos, while also accounting for the total cost of ownership of their edge infrastructure.

Questions to Help Business Leaders Decide if Edge Computing Is Right for Them 

Implementing edge computing is a strategic choice that depends on a business's needs. To decide if it's the right path, consider the following questions.

1. How Important Is Real-Time Data Processing to Operations? 

If an organization depends on instantaneous feedback and decision-making to stand out, edge computing is a strong option. Processes where even a small delay could impact efficiency, customer satisfaction or safety include real-time inventory tracking, responsive point-of-sale systems and IoT-enabled equipment that monitors machinery to predict maintenance needs. If speed is a differentiator for a business, the reduced delay of edge computing is a big advantage.

2. Does the Business Deal With Unreliable or Slow Internet Connectivity?

One of the best benefits of edge computing is its ability to operate even when internet connectivity is poor or unavailable. It offers resilience for operations in remote environments or businesses that cannot afford downtime. For example, an edge-enabled system can process customer transactions, ensuring business continuity, regardless of the internet connection.

3. Is the Organization Prepared for the Costs and Management Required for Edge Computing?

Edge computing typically shifts spending from operational expenses, like monthly cloud bills, to up-front capital expenses for hardware. Beyond the initial purchase, this distributed hardware needs to be managed, maintained and updated. Businesses should determine if they have the budget for this initial investment and whether to manage the new infrastructure in-house or with external experts.

4. Does the Business Have a Strategy for Securing the Edge? 

Businesses need a robust cybersecurity plan to prevent expanding their potential attack surface. This includes securing each device, protecting the data it processes and ensuring the integrity of the network. Consider whether the company has the necessary security protocols and expertise to manage these new risks. 

5. How Will Edge Computing Scale With the Company?  

As a business expands, its edge infrastructure will also need to scale. Adding more devices can increase complexity, so consider whether a decentralized model will support growth or become too complex to manage effectively. Planning for scalability from the beginning is key to ensuring the edge computing investment remains valuable in the long run.

Considering the Impact of Decentralized Computing 

Ultimately, professionals should decide whether to adopt edge computing by carefully analyzing its potential benefits and inherent challenges in relation to their company’s needs and affordances. If a business relies on localized processing, speed and reliability, it should explore implementation by consulting a trusted technology adviser.