Edge computing is rapidly emerging as one of the most transformative technology trends for enterprise organizations managing distributed networks and real-time data demands. Learn more about telecom expense management and how emerging infrastructure technologies like edge computing directly impact how organizations manage and optimize their technology costs. Organizations use cloud computing to process stored data. Edge computing, by contrast, gives companies access to data in real-time. Real-time may be a relative term since latency continues to be a challenge that edge computing developers contend with. In remote areas, edge computing is a bonus because there is limited or no centralized repository for connectivity.
Why Edge Computing Is Challenging Cloud Dominance
Cloud computing, once a disruptive technology, has become the standard approach for most organizations. Major players include Microsoft Azure, AWS (Amazon Web Services), and Google Cloud Platform. Companies around the globe are still working to adopt cloud computing technology to keep up with the competition. However, it’s a well-established technology and edge computing has become the new disruptor on the block.
Every day, organizations accumulate larger quantities of data, and this has revealed shortcomings in the cloud computing model. Edge computing helps developers work around latency issues and problems with processing data through a centralized data center. Data remains “on the edge” — meaning closer to where the information is needed — with the ability to process information in locations with little or no link to a centralized repository.
According to Gartner, the global edge computing market is projected to reach $61.1 billion by 2028, growing at a compound annual rate exceeding 38% — driven by the proliferation of IoT devices, the rollout of 5G networks, and the increasing demand for real-time data processing at the device level. Understanding how use new information technology transform your business models applies directly to evaluating whether edge computing belongs in your organization’s technology roadmap.
What Is Helping Edge Computing Gain the Edge?
Edge computing handles workloads closer to endpoints instead of the data center. The market is forecast to grow substantially as a significant majority of all businesses adopt this technology within the next few years.
There are several elements that will drive this growth. The fact that edge computing maintains data closer to devices can save on bandwidth — meaning improved latency for delay-sensitive applications as systems grow independent of corporate networks.
According to Deloitte, the intelligent edge can benefit organizations that manage networks, clouds, infrastructure, and data centers that connect to actuators, sensors, and devices. Networking companies are likely to be the biggest consumers of edge computing technology. Edge can also help manage the networks of service providers, telecom companies, and CDNs. For example, smart diagnostic tools can analyze data and correct problems without connecting to a data center.
However, supply chain challenges have created pricing pressures for edge hardware, and some businesses currently view edge computing as a longer-term investment rather than an immediate operational deployment — particularly given the complexity of integrating new infrastructure with existing systems. The value business values framework applies here — organizations that make technology investment decisions grounded in clear operational principles consistently navigate emerging tech adoption more successfully than those driven purely by market momentum.
OpenRAN: The Open Standard Enabling Edge Computing at Scale
5G deployment poses a significant infrastructure challenge for carriers. Traditionally, carriers have relied on proprietary hardware and software stacks. Conversely, edge computing demands numerous base stations compared to previous wireless generations.
To keep costs down, carriers are shifting towards open standards such as Open RAN — a standards-based, virtualized architecture that carriers use for radio access networks. This technology allows them to modify access points quickly and cost-effectively.
Carriers can use different hardware components, as long as they comply with standards, which increases price competition and facilitates maintenance and configuration. Challenges include the need for large-scale testing and the persistence of competing proprietary standards among vendors — both of which slow the pace of interoperable deployment. The convergence of edge computing and Open RAN is accelerating, however, and organizations that build awareness of these developments into their technology planning cycles will be better positioned to capture the efficiency and cost benefits as the standards mature. Monitoring how new broadband offerings could change enterprise connectivity economics is an important parallel track for organizations evaluating edge computing investments.
How Edge Computing Impacts Telecom and Technology Expense Management
The proliferation of edge computing infrastructure creates both opportunities and challenges for organizations managing technology expenses. On one hand, edge deployments can reduce cloud bandwidth costs by processing data locally — delivering direct savings on data transfer and cloud service fees. On the other hand, the distributed nature of edge infrastructure adds new layers of complexity to inventory management, contract tracking, and cost allocation.
Organizations that implement edge computing without a corresponding upgrade to their technology expense management capabilities often find that the savings generated at the network layer are partially offset by new cost visibility challenges at the management layer. Tracking devices, contracts, and service costs across a distributed edge environment requires exactly the kind of centralized inventory and invoice management that a capable TEM platform provides.
Valicom Cloud and Edge Expense Management
The experts at Valicom continue to follow edge computing and other technology that can help organizations save money and run their telecom operations more efficiently.
As part of its service offering, Valicom offers Cloud Expense Management as well as tracking telecom, technology, servers, and utility assets and expenses. We can help your organization manage cloud and edge-related expenses with mature software tools that are intuitive and proactive when it comes to identifying opportunities for savings and catching billing errors before they impact your bottom line.
As edge computing continues to mature and enterprise adoption accelerates, having a TEM partner with the expertise and tools to manage the resulting cost complexity will become an increasingly important competitive advantage. The organizations that combine smart infrastructure investment decisions with disciplined technology expense management are the ones that will capture the full financial benefit of edge computing — rather than watching new infrastructure savings get absorbed by new management costs.
Ready to build a more cost-efficient technology environment as edge computing reshapes your infrastructure? Contact Valicom today and let our team help you manage every aspect of your cloud and edge expense landscape.