There’s no question that over the next decade, edge computing is going to be at the heart of technology strategy for many industries.
In fact, the network edge is going to pay the bills for a lot of businesses. And there’s a good reason for this; Gartner has shown the explosion we’ll see in new locations for data creation:
“Currently, around 10% of enterprise-generated data is created and processed outside a traditional centralized data center or cloud. By 2022, Gartner predicts this figure will reach 50%.”
Adapting for the network edge
Companies of all shapes and sizes are going to need to adapt their commercial model to address the shifting geography of data creation. In fact, it underpins the facilitation of the whole future vision of the future. Gartner has articulated the need for immersive technologies and AI to rapidly adopt the network edge as part of their core strategy. So, this vision will be reliant on smart and connected devices that cannot afford the latency of a traditional, centralised data centre model.
For colocation providers, this accentuates the need to have a comprehensive edge computing offering to serve as the go-to for the emerging tech stars of the future. But it’s also in helping the traditional enterprise of today evolve, that colo leadership of the network edge is going to be so important. Beyond the opportunity to service the future-gazing technologies, there may be broader models that are facilitated by smart delivery of edge IT infrastructures.
Edge Computing as a premium
For enterprises, the capability to reduce latency to an extreme degree could enable more premium service delivery to customers. Certain types of application experience or data delivery model could enable higher value subscriptions to target customers for whom that need for speed is insatiable. And so, for colocation providers looking to win business from these enterprises, an edge computing strategy becomes very commercially appealing. In other words, colos that get their edge strategy right can become the gatekeeper for premium data experiences.
In fact, there are a wide array of business models that could shift with a successful edge computing strategy. One hypothesis is of a reduction in the required processing power within devices such as smartphones and tablets. Today we rely on devices that can handle lots of processing by the device within the application, as the noticeable latency on pulling back a request from a distant server would negate a high-quality user experience. But if you can bypass the latency barrier by delivering outcomes from the network edge, rather than the hub, it could free up devices to serve more as a terminal than a full computing device. A whole new era of application services could emerge to support this.
Finding the funding for the network edge
The network edge clearly spells a huge commercial opportunity for the colocation market. But for many colos, the strategic decision to target the edge will require a significant capital investment in attaining premises and building new edge micro data centres. Unsurprisingly this will necessitate conversations with banks and the investor community, as colocation providers seek to underpin ambitious growth strategies. In turn the organisations guarding the purse strings will want to understand the viability of this new model, particularly regarding addressing concerns around security and availability.
So, if colocation providers can’t make their edge computing strategy resilient, it might not even get off the ground. Thinking is going to have to change to encompass a more intricate approach to physical security. IT infrastructure is going to be more widely dispersed, with reliability in servers and racks, switches and PDUs, power and cooling all key to constant availability. And the potential for cyber-attacks, using a network edge location of a point of weakness, will ensure that cybersecurity moves to the top of the edge agenda.
None of this is going to quick or easy to solve. But colocation has become the model of choice for a vast number of enterprises seeking a more innovative IT infrastructure model. The challenge is now on for colocation providers to stay at the leading edge of innovation.
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