What Is Edge Computing? Why Is It an Important Trend in 2020?

Understanding the next evolutionary step in cloud-edge computing mitigates some of the weaknesses of cloud computing in the modern business environment.

Edge computing is a cloud computing offshoot. It runs on the principle that data is processed through mobile devices that are connected to the main computer. The practice of utilizing the “edge” of the cloud computing network reduces the bandwidth and processing requirements used by the central warehouse. As a result, user experience is enhanced and lag time is decreased, if not eliminated.

Cloud computing virtual centralization of IT infrastructure, assets, and data has opened up a whole new world. It has turned every smart device into a corporate endpoint ushering in a new era of digitization. As the world uses cloud computing to transact business, play games, do schoolwork, and socialize with each other, a few weaknesses have appeared: centralization has reduced the reliance on local area networks while increasing the traffic and bandwidth requirements on the internet.

A time-tested concept

Cloud computing virtualizes a lot of human interaction, including in business and related financial transactions. Online banking is a good example; using a mobile app, a myriad of routine bank transactions is possible using a phone or computer connected to the internet.

In the not-so-distant past, how did the senior bank management solve the problem of congestion in the bank? How did they resolve the management of too many accounts? One solution was to open branch offices. Having different branches spread across a geographic area makes it convenient for clients to access their accounts, while reducing the number of customers and their foot traffic in the main office. It also increased the speed of transactions as more branches allowed more concurrent transactions processed. The shortened distance customers now travel between the bank branch and their home or place of business also increased customer satisfaction.

Think of the virtualized cloud infrastructure as the central bank office feeling the strain of too many depositors  — with data taking its place in the virtual world. Bandwidth and processing speed are dependent on hardware. Cloud computing is set up in such a way that adding more resources has become a breeze. But one thing it can’t change (yet) is the speed an electronic signal travels over physical connections. The signal has breathtaking speed:  it can go around the world in half a second. But if only half a second delay on a computer occurs, a discernable lag can happen. This lag then reduces productivity and user experience.

This is where edge computing comes in – it configures the infrastructure to allow the end-user to interface with the nearest physical hardware or cluster. It creates a virtual branch office as a solution to network limitations.

How edge computing can affect the bottomline

Edge computing is a simple change in the way cloud computing handles data processing. Processing data at the “edge” of the cloud network physically reduces the distance travelled by the electronic signal to the user, and mitigates the limitations of a centralized virtual network. Similar to what happens to a branch office, it is no longer necessary for the electronic signal, e.g. data, to travel to the central warehouse to complete digital transactions. 

Other than the technical benefit of reducing network congestion, one of the main advantages of edge computing is an increase in user experience. 

According to designadvisor.com, intentional and strategic user experience has the potential to conversion rates by as much as 400%. It even claims that 52% of online shoppers are more likely to be loyal to a site if the page loads quickly.

Impactbnd claims that 90% of users, and 86% of them deleted it.

The statistics make sense, given the overwhelming desire of today’s consumers to finish all their digital processes ASAP. A laggy website or mobile app negatively impacts their impression of the brand. The customer will feel they have not been served well and can change providers, resulting in lost business and decreased market share.

Edge computing helps improve the performance of a business service. It speeds up the process by which digital natives do business, shop, or interact with their friends. It sharpens the competitive edge of the company that uses it, making an investment in it something worthwhile for the business owner to consider.