A distributed and decentralized IT architecture. This is how it presents itself edge computing, the technology that promises new opportunities for providers in the development and offering of network services 5G and IoT.

What is edge computing used for? In simple terms, it is a technology that allows to decentralize the cloud. It achieves this by making some applications free from remote data centers, allowing them to rely on local computers.

Edge computing leverages electronic components and systems known as SFF, an acronym for "small form factor," thus bringing the basic data processing and storage components closer to the sources that generate them.

In this article, we reveal three aspects you absolutely need to know to leverage the advantages and seize the opportunities of technology.

The death of the cloud?

"Edge computing will mean the end of the cloud." This is the opinion of a key player in the global innovation ecosystem, Peter Levine, venture capital partner Andreessen Horowitz.

According to Levin, in a future where devices like drones, self-driving vehicles, and robots they will become increasingly widespread in companies and homes, very rapid processes will be needed: sending data to the cloud might still be too slow a solution.

Levin does not claim that the cloud will disappear entirely from the scene, but its role will be significantly reduced.

Here is the full video of his speech on the topic

The marriage of edge computing with IoT

Who implements solutions in the field ofIoT knows what problems it often faces by using the conventional cloud model: from latency issues to lack of bandwidth.

Edge computing is one of the technologies that helps solve many of these problems because it reduces the amount of data to be sent to the cloud: the data most critical for latency, in fact, are processed at the point of origin, thanks to smart devices.

The increase in network-connected objects received a significant boost in 2019. According to data collected by the Research of the2020 Internet of Things Observatory of the School of Management of the Politecnico di Milano, the Internet of Things market has reached a value of 1.2 billion, with an increase of +24% compared to 2018.

Edge computing, in the maturity phase it is about to reach, promises to further increase these numbers, focusing on the business world, industry, and especially in the Healthcare sector.

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Opportunities for telcos

Of the opportunities of edge computing for Telcos, the report "Telcos and Edge Computing: opportunities, threat or distraction, released by the company Vertiv.

The document states that the growth of Edge offers providers the opportunity to develop services related to 5G and IoT networks, thanks especially to prefabricated modular data centers, the so-called PFM.

PFMs will enable providers to supply the edge infrastructures of the future, in a market that, according to Vertiv estimates, will reach a value of 4.3 billion in 2023.

Going into more detail, there are many possible applications that can be developed by providers. Consider, for example, solutions that require low latency (such as autonomous driving car services) or high bandwidth services (such as video surveillance systems). Providers could offer these services as Iaas (acronym for infrastructure as a service) or as Paas (platform as a service).

Another scenario involves the possibility of distributing sites oedge computing in companies, in order to provide private 5G services and connectivity, without the need to create LAN networks, or rely on traditional wifi.

But these are just a few examples of many markets to keep an eye on in fields such as virtual reality and augmented reality, or mobile gaming.