Edge computing refers to processing and computing data as close to the point of origin as feasible, enabling near-real-time decisions and insights to drive better outcomes. It is computing that moves intelligence, processing, analytics, and communication capabilities closer to the data source. The goal is to reduce latency while ensuring highly efficient networks, operations, service delivery, and user experience.
Edge data centers are ideal for workloads that require low latency, high performance, and real-time processing. It is a preferred choice for content and media companies and enterprises looking for real-time analytics, low-latency, and experience-driven applications.
Edge data centers are strategically distributed across Tier II locations to address emerging local workloads. In these locations, edge data centers address regulatory compliance and data sovereignty concerns by keeping specific data within geographical boundaries and provide greater control and security.
This report highlights the key trends creating opportunities in the edge data center space. It covers a strategic imperative, detailed overview of edge computing, technological shifts accelerating the need for edge data centers, service provider initiatives, ways forward, and growth opportunities.
Author: Kriti Yadav
The Impact of the Top 3 Strategic Imperatives on the Data Center (DC) Industry
Disruptive Technologies
Why
Increased Internet of Things (IoT) adoption and emerging new use cases leveraging 5G and AI technologies across industries will result in large volumes of data that will require processing with minimal latency to enable business outcomes.
Frost Perspective
Niche DC service providers will focus on edge DC development to meet mission-crucial applications that have low latency and high-performance requirements with widespread IoT adoption by billions of devices, 5G networks, and AI technology.
Innovative Business Models
Why
Edge DCs are an important part of the increasingly distributed architectures and digital infrastructure. Bringing processing and storage capabilities closer to the data source (or where the need for them lies) is imperative for new business models.
Frost Perspective
Edge DCs will become a core decentralized architecture component in the next 2 years, as service providers explore edge computing-driven use cases.
Transformative Mega Trends
Why
Environmental sustainability and renewable energy use are becoming decisive DC design and strategy factors. DC service providers are developing energy-efficient green DC solutions to lower their carbon footprint and operational costs.
Frost Perspective
Service providers have increased their focus on renewable energy use, DC design that supports waterless cooling, carbon neutrality, and alliances and partnerships to gain sustainable development expertise.
Why Is It Increasingly Difficult to Grow?
The Strategic Imperative 8™
The Impact of the Top 3 Strategic Imperatives on the Data Center (DC) Industry
Growth Opportunities Fuel the Growth Pipeline Engine™
Defining the Digital Edge
Defining the Digital Edge (continued)
Transformational Levers Driving the Need for a New Architecture
Market Overview: Edge DCs
Edge DC Workload Measures
Low-latency Use Cases Accelerating a Decentralized Digital Infrastructure Landscape
Low-latency Use Cases Accelerating a Decentralized Digital Infrastructure Landscape (continued)
AI Workload and Real-time Processing Edge Infrastructure
AI Workload and Real-time Processing Edge Infrastructure (continued)
5G Creating Greater Consumption of Edge Digital Technologies
5G Creating Greater Consumption of Edge Digital Technologies (continued)
More IoT Devices Requiring a High Volume of Data Processing Closer to a Low Bandwidth Source
More IoT Devices Requiring a High Volume of Data Processing Closer to a Low Bandwidth Source (continued)
Edge DCs and the New Architecture
Existing and Planned Edge Infrastructure Use
Enterprise Priorities for Choosing Edge Location
Pillars of Edge DC Strategy
The DC Ecosystem
Service Provider Segments Focusing on Edge
Hyperscalers and Carrier-neutral Colocation Service Providers
Niche Edge DC Providers
Recent Edge Developments, 2022–2023
Recent Edge Developments, 2022–2023 (continued)
Recent Edge Developments, 2022–2023 (continued)
Telecom Service Providers
The Hybrid Strategy
The Shift Toward Edge Architecture
Key Questions to Consider
Building New Capabilities
Growth Opportunity 1: Edge DC for Colocation Services
Growth Opportunity 1: Edge DC for Colocation Services (continued)
Growth Opportunity 2: Edge Advisory Services for Enterprise Architecture
Growth Opportunity 2: Edge Advisory Services for Enterprise Architecture (continued)
List of Exhibits
Legal Disclaimer
List of Figures- Edge DC by Workload, Global, 2023
- Main AI Deployment Models, Global, 2023
- 5G Network Attributes, Global, 2023
- Business Objective: Edge Infrastructure, Global, 2023
- Enterprise Reasons for Choosing Edge Location, Global, 2023
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| Deliverable Type | Market Research |
|---|---|
| Author | Kriti Yadav |
| Industries | Information Technology |
| No Index | No |
| Is Prebook | No |
| Keyword 1 | Edge Data Center Analysis |
| Keyword 2 | Data Center Industry Trends |
| Keyword 3 | Edge Infrastructure Trends |
| List of Charts and Figures | Edge DC by Workload, Global, 2023~ Main AI Deployment Models, Global, 2023~ 5G Network Attributes, Global, 2023~ Business Objective: Edge Infrastructure, Global, 2023~ Enterprise Reasons for Choosing Edge Location, Global, 2023~ |
| Podcast | No |
| WIP Number | PFD5-01-00-00-00 |
Edge Data Center Growth Opportunities
Technological Shifts and Low-latency Use Cases Unlock Future Growth Potential
16-Jan-2024
Global
Market Research
