Edge computing and 5G are two trending topics right now for their enormous potential to both enable and exploit the digital transformation accelerated by the pandemic. Their expansion is a symbiotic relationship - while edge computing has been around for years, its growth will be greatly impacted by 5G, and 5G undoubtedly depends on the network edge for a successful adoption.
To meet the demands of digitization, applications are focusing on providing increasingly fluid experiences, where latency is an enemy. In this context, edge computing offers small or micro data centers that include scaled power, thermal and IT Management infrastructure deployed closer to the data consumers to deliver with lowest latency. But, for this to be possible, a 5G network that provides the right qualities of speed, bandwidth and connectivity is needed. To make it simple: 5G enables and expands the potential of what edge computing does.
It is a win-win that paves the way for a new revolution in the production and operation processes of multiple industries, allowing them to be more productive, automated, and efficient.
The trend is definitive. According to IDC’s global forecasts, by 2024 50% of the world's infrastructure is expected to be on the network edge. In Latin America, investment in edge computing is also increasing, in fact, the consulting firm expects that by 2024 the compound annual growth rate (CAGR) for the region will reach 16%, which translates into an investment of $8,573 million.
IDC predicts that the most impactful contributors to edge of network spending in the region range from innovations in autonomous vehicles, robotics, enhanced reality, the Internet of Things (IoT) and Artificial Intelligence (AI).
The potential for verticals
The implementation of edge computing and 5G in the most dynamic industries is already having interesting operational impacts in the world, which could add a lot of value to the development of the Latin American region.
In terms of manufacturing, the network edge is making it possible to manage growing factory data, systematize production processes, and even monitor and control machines remotely through the Internet of Things (IoT). Meanwhile, at a consumer level, smart retail and enhanced reality are changing the shopping experience completely.
Other examples are seen in healthcare and the potential this represents for telemedicine to access patients more easily, including telesurgery to allow better use of experts’ time and to reach help more patients through remotely assisted surgeries Another example is education, with 5G massifying the use of the Internet and the synchronization of applications so that students can attend a virtual lesson wherever and whenever they want.
In addition, the remote control of cranes in ports has also allowed the logistics industry to improve its productivity and ensure continued operations even during the pandemic lockdown, providing additional levels of safety for their employees. Similar situations happened in the mining industry with autonomous driving trucks.
When it comes to telecommunications, the potential is twofold. Telecommunications operators are both users and providers, which means they not only configure their own network at the edge, but also offer edge services to their customers. This leads to the network topology being seen more as a data center than as a traditional communications network.
The potential of edge is enormous; however, as previously mentioned, its growth is directly related to the penetration of 5G, and on this issue, Latin America still has a lot to do.
As evidenced in the 2022 Statista reports, Brazil and Mexico are the most optimistic markets, where mobile connections through 5G are expected to reach 20% and 14% by 2025, respectively. For the rest of Latin America, the penetration forecast for that year is 12%.
The data revealed by Statista shows that the region is moving in the right direction and the progress will soon be felt. However, to see a greater adoption of edge computing and the realization of its benefits for the development of industries, the deployment of 5G must be accelerated.
Edge and 5G: The articulation of two worlds
Availability, security, energy management and monitoring are challenges that arise when we talk about the articulation of 5G and Edge computing anywhere in the world. As these technologies gain traction, data centers have become more complex and the management more demanding as operators must manage hundreds (or thousands) of edge data centers to maximize the potential of their 5G networks.
This is precisely the challenge that we seek to address at Vertiv by defining four Edge infrastructure models, designed to standardize the design and deployment of multiple Edge hubs, including those that support 5G networks: Device Edge, Micro Edge, Data Center Distributed Edge and Regional Edge Data Center.
To support these four models, we offer multiple infrastructure solutions, such as power distribution systems, efficient thermal management systems, easy-to-use monitoring platforms, advanced KVM and console servers, as well as integrated modular systems that combine everything efficiently. Learn more of our technology in our 5G at the Edge center.
