Introduction
In the fast-moving digital sphere, SMEs are always looking for new ways to improve efficiency and stay competitive, and needing to improve the speed and portability of data is certainly becoming one way to do so. One emerging tech, edge computing, can process data closer to the origin of the data, unlike the traditional centralized model that routes all data to a cloud server. This allows speed, security and operational improvement. In this article, we discuss how SMEs can utilize edge computing to support business growth, as well as benefits, common use cases, and impact on the future.
What is Edge Computing?
Edge computing is a distributed computing model that processes data closer to the source rather than transferring data to cloud data centers far away, improving speed. Better speed enables better real-time decision-making for businesses while decreasing costs associated with bandwidth. Edge computing prevents the lag time in processing data encountered with cloud data processing.
Contrary to cloud-based data centers, the computing function is fully or partially distributed with edge computing so that processing and analyzing data happens much closer to the source as IoT devices, local servers, or on-premise systems, which minimizes the need for cloud storage or analysis and reduces operational costs for SMEs. With the ease of edge computing, it is not so important, or at least not at the top of the priority list, that data always be processed remotely or through the cloud, allowing for less dependency on the internet and potentially lowering costs for SMEs.
Why should SMEs consider Edge Computing
1.Reducing Latency and Getting Quicker Decisions
There are times when SMEs need timely information to respond, especially in retail, logistics, and manufacturing. Edge computing, by virtue of executing or processing data closer to its origin, reduces lag time compared to centralized processing, and businesses can receive timely, real-time feedback and make business decisions based on data faster than relying on a cloud system. Faster processing also enhances customer experience and increases productivity on time-sensitive jobs, e.g. real-time inventory and fleet management.
2.Heightened Security and Safekeeping of Data
Because information is processed in-place, SMEs can minimize threats associated with sending items containing sensitive information across a network. This process enhances cybersecurity and makes it more difficult for cybersecurity breaches to access a business’s data. In addition, because the data is being processed closer to the business, it puts adding on additional protection regulations easier to navigate.
3.Cost Efficient Operations
With less need for a centralized cloud storage option, SMEs can save substantial costs on data transfer and data processing and storage. By processing information from an edge, these firms do not need the same level of bandwidth usage, which means only the computing that is needed is their rate of payment. Additionally, where digital infrastructure may be sparse, access to the same information does not depend on constant connectivity – it optimizes use and without an excessive cost.
4.Reliability and Continuity of Business Operations
Internet outages and downtimes of the cloud service can substantially impact the operational capacity of the SME. Processing at the edge allows for critical processes to continue to run when the connection is down, therefore maintaining the operational capacity of the business. Relying solely on digital cloud-based services for their business processes means that if access to the internet is lost, business processes cease as well.
5.Scalability and Flexibility
SME’s benefit by being able to slice their processing needs easily on edge infrastructure. Whether increasing retail outlets or improving logistics, processing edges offer the scalability that isn’t dependent on central processing. Business needing to function out of multiple branches can utilize the process at each of their local establishments, which creates a limited reliance on centralized processing.
Future Trends in Edge Computing for SMEs
The shift towards edge computing in SMEs is anticipated to continue expanding, as organizations increasingly depend upon data insights to optimize efficiencies. Here are some important trends to follow:
1.Use of Edge Computing with Artificial Intelligence (AI) and Machine Learning (ML): Edge computing has the capability to process data from AI and ML in real-time, allowing organizations to gain insights from their data, without sending all data to the centralized cloud server. This is utilized for real-time fraud detection, automated customer engagement, and personalized marketing.
2.5G and Edge Computing Convergence: With the expansion of 5G networks, edge computing can be further leveraged. The ensuing faster data share and lower latency would allow small and medium enterprises (SMEs) to deploy more advanced applications, such as augmented reality (AR), real-time remote collaboration, and smart cities initiatives.
3.Edge as a Service (EaaS): With technology providers continuing to develop less complicated edge computing methodologies, SMEs will be able engage in managed edge computing services that will remove barriers of costs and overly complicated deployment.
4.Increased adoption of IoT devices: The continued proliferation of IoT devices into SMEs would drive increased adoption of edge devices. Businesses want to process data locally to manage all connected devices at the SME site – including security cameras and smart thermostats.
Challenges and considerations for understanding how to make edge computing work
While there are many benefits, SMEs must continue to explore challenges in adopting edge computing.
1.Initial investment costs: Even though edge computing is purported to lower costs over the long haul, the initial investment in hardware and software may still be considerable for SMEs. It will now be essential to validate use case needs and to scope out cost-effective hardware and software solutions that fit any teams’ budgets.
2.Integration with legacy systems: Many SMEs may operate part, or sometimes full, legacy systems may not “fit” well with edge computing systems. Smooth integration must take place without having to interrupt or re-design existing business processes.
3.Data secured managed: Even though edge computing may be secure, SMEs will want to implement enough secured degrees of security processes to protect data collected and processed to avoid breaches and follow cyber roadmaps.
4.Skill gap and training: SMEs may not have enough technical skills required to manage and sustain an edge computing systems infrastructure, and or send notifications to support help, or requirements. Companies may invest in training for your employees or outsource the management of this infrastructure to attract more suitable talent.
Final thoughts
Edge computing may be transforming and improving how small and medium enterprises may collect, process, store, and protect data, while at the same time, allowing the business to rely less on precious human intervention, especially if data is analyzed in real-time, or some form of intelligence (AI, ML) allows for learning-based or predictive outcomes or behaviors. As mechanization continues to alter work and human behavior, this workforce may make edge computing possible in small and medium enterprise operations. Since edge computing is evolving and is a possible competitive advantage may be pursued by small and medium enterprises (SMEs), many factors may “stack” in favor of using edge computing at enterprise-level businesses.
As more edge computing is being factored in with an AI, and 5G cellular networks, with more IoTs becoming available, “theoretically” creates more scenarios (potential) for more uses of SME edge capabilities. Nevertheless, these challenges will likely still remain, but pushing for solutions will provide long-term outcomes that follow on the initial investments for edge computing use for higher performance and/or scalable engagements or applications. Each of the previous discussed considerations may become strategic advantages for any enterprise over time, given the inertia created, with edge computing increasingly used.
