Today we’re going to explore what happens when Edge Computing meets 3 distinct industries. This is “The Future of”. But think about how many different products you look at in a supermarket. All those things are not really captured. So, you can use smart devices in different areas of a store and collect those touchpoints and understand more deeply your customer behavior. So, really, the benefit of Edge Computing in the future of retail is really going to come from the power of personalization. Yeah, I totally agree. Personalization is going to be so important.
You need to sell to everybody, but with a very different and specific customer experience. So, what do you find most exciting about this emerging world of Edge Computing in the retail industry? Well, I believe there are 3 things that are super exciting. The first one could be a fully automated store. The second one is the ability to leverage data that is not generated in the store. And the third one is a completely immersive experience, characterized by virtual reality, or augmented reality.
Which kind of brings us back to, then, the other part of the equation for the retailers, and the pressure that they’re under economically is how to do so, how to introduce these capabilities at a lower cost. So, Edge also has the great advantage of the Cloud, of being flexible and scalable. These really help the cost-effectiveness of integrating and deploying an Edge network. Also, the maintenance costs are very limited, because you can still manage them centrally, but you are able to deploy different software according to the different situation.
It’s going to be exciting, and I’m glad to have you here on board with us, to take us through that journey. Val, Thank you for bringing your expertise in the area of Financial Services. What does Edge Computing mean to the financial services industry? With Edge Computing we’re able to go that next step of engagement with consumers anywhere, anytime. So, we have ATMs. In the ATM environment currently today there are cameras.
We want to make sure it’s a safe environment. But also, in the situation where there is a fraud, they have the data collected to be able to, you know, look at the log files and see what happens. That’s all post-event, though. So, what we can do now is, in real-time, identify that we have a risk, either to human safety or to fraudulent behavior. And, with that, alert within financial markets, for example, and trading. Your decisions have to be made so rapidly in that environment.
And, you know, the latency, network bandwidth, and sending things to the Cloud to make it such – it’s just, it’s prohibitive to the ability to bring those analytics right down to the Edge, where the data’s created at the network, and then alert for decision-making in milliseconds, can be a huge differentiator in gains. To me, it’s a very exciting time in our industry.
So let’s talk a little bit about the distinction between 5G and Edge, because we use them interchangeably sometimes, but in fact, they’re quite different, aren’t they? Absolutely. So, Edge use-case can also be done in 4G. Edge is independent of 5G. But 5G will provide a whole new set of opportunities or use-cases that never existed in a 4G environment. A classic example would be a use-case that existed in 4G.
but it may not have those latency, may not have those network slicing features, may not have those bandwidths, and so its ability to be powerful, or impactful, would be limited. 5G will transform it. 5G is the fuel for Edge computing. Absolutely. That’s the right way of putting it. If I’m a CIO for a telco (telecommunications company), what should I be thinking about in terms of my future and where I need to be taking the business? We talk about their industry in 3 strategic imperatives.
The first one is digital customer engagement. How do you improve the experience for the end-user? The second one is network and Cloud agility. How do you leverage Cloud, virtualize networks, et cetera? And then the third one is enterprise transformation. And so it really kind of comes down to accelerating the delivery of value, reducing operating costs and then increasing efficiency, and getting a deeper return on investment.
It’s been predicted that the edge market is headed for strong growth over the next few years. For example, the global revenue for edge devices and edge networks deployed for AI will reach $827.6 billion by 2025, up from $127.5 billion in 2019, with revenue expanding at a compound annual growth rate (CAGR) of approximately 37 percent (Omdia, 2020).
One of the reasons for this is the sheer amount of data that we around the world are producing.
Edge computing as a field exploits computing at local and edge locations before typically connecting and communicating with the cloud. Often this has to do with the sheer volume of data generated at the edge and which would not be feasible or sensible to send to the cloud when it can be first processed at source before sending select data to the cloud (Omdia, 2019). Thus, as the amount of data grows, so too does the edge computing market.
But where does the future of this market lie? The new decade has been earmarked as a key turning point for edge computing and those already in the know are anticipating an explosion of edge interest, deployments, and solutions, but what does this mean for those in the industry?
Enterprises, telcos, and data center operators alike are looking to define their place in this evolving ecosystem.
Edge computing offers enormous promise – some say it may even supplant cloud computing. Certainly, this emerging technology, in which sensors across the Web provide a torrent of data, is growing rapidly. A research report in August 2019 forecast a blistering 32% CAGR yearly increase between now and 2023, meaning the edge market will double in size.
Edge computing fuels many of the tech trends that are getting buzz today, including smart factories, smart grids, connected vehicles, and more. While IoT has driven edge computing, the technology-fueled by 5G – will play an ever-greater role in many sectors beyond IoT.