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What Is Edge Computing, And How Does It Help Companies Save More ?

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Fonada, a trusted CPaaS & cloud telephony solution provider in India, is popularly known for revolutionizing communication with Cutting-Edge Technology. Our advanced customer engagement solutions,...Read more


Fonada, a trusted CPaaS & cloud telephony solution provider in India, is popularly known for revolutionizing communication with Cutting-Edge Technology. Our advanced customer engagement solutions,...Read more

Edge computing is a powerful distributed computing architecture that brings enterprise applications closer to the data sources like IoT devices or local edge servers. This proximity to the data source can result in several added benefits for businesses, like quicker insights, better response times, and improved bandwidth availability. 

Powered by the cloud, edge computing technology enables business enterprises to reimagine experiences for purpose, people, and profitability, keeping the factors of speed and scale in mind. Edge computing solutions allow businesses to merge the digital and physical worlds by integrating online data and algorithms that improve experiences. This content sheds light on information about ‘what is edge computing’ and how edge computing solutions help business enterprises get better outcomes with little effort and investment.

Introduction (Edge Computing)

Global research firm Gartner predicts that 75% of data will be processed outside the cloud or traditional data center by 2025. The potential of cloud, mobile, or 5g edge computing makes it highly useful for transforming businesses across every function and industry. IoT devices’ growth and computing power have led to an unprecedented surge in data volumes, which will continue to rise with the increase in connected mobile devices through 5G networks. 

In the past, cloud and AI promised to automate and speed innovation by providing actionable insights from data. However, the scale and complexity of data generated by connected devices have surpassed network and infrastructure capabilities.

Sending all the device-generated data to a centralized data center or the cloud causes issues with bandwidth and latency. Edge computing provides a more efficient alternative by processing and analyzing data closer to the point of creation. It reduces latency significantly, as data does not need to traverse over a network to reach a cloud or data center for processing. Edge computing and mobile edge computing together on 5G networks permit faster and more comprehensive data analysis, providing opportunities for deeper insights, faster response times, and better customer experiences.

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When Was Edge Computing Invented?

Edge computing was invented in the 1990s. The inception of edge computing dates back to the 1990s when Akamai introduced its content delivery network (CDN). At that time, the concept was to introduce nodes closer to the end-user’s location to deliver cached content, such as videos and images. The right answer to the question of what is edge in cloud computing lies in the benefits of edge. 

Possible Components Of Edge Computing 

Components Of Edge Computing

The advantages of edge computing differ from traditional models where computing power is centralized at an on-premise data center. By deploying compute resources at the edge, companies can enhance their management of physical assets and create new interactive experiences. For instance, edge computing is useful in various use cases such as self-driving cars, smart equipment data, automated retail, and autonomous robots. The following are the possible components of edge computing. 

Edge Devices 

Edge computing comprises different components such as edge devices, including smart speakers, watches, and phones. These devices collect and process data locally while interacting with the physical world. Similarly, other devices such as point of sales (POS) systems, robots, sensors, and vehicles can also serve as edge devices if they compute locally and connect to the cloud.

Network Edge

Another component of edge computing is the network edge. Unlike edge devices, it does not require a separate edge network. For instance, it can be located on an individual edge device or a router. 5G technology offers powerful wireless connectivity to edge computing, bringing low latency and high cellular speed, which is particularly useful in cases where high responsiveness is required, and it is too costly and complicated to deploy compute resources on-premises. 5G offers exciting opportunities such as remote telesurgery, autonomous drones, smart city projects, and more.

On-Premise Infrastructure

Lastly, on-premises infrastructure, which includes servers, routers, containers, hubs, or bridges, manages local systems and connects to the network.

Edge Computing Vs. Cloud Computing

What is Edge Computing vs Cloud Computing

The difference between edge and cloud computing helps you better understand the utility and relevance of computing for various purposes. It is essential to recognize that cloud computing and edge computing are two distinct and separate technologies that cannot substitute for each other. Edge computing is employed to handle time-sensitive data, whereas cloud computing is used for processing data that is not time-critical.

Apart from addressing latency, edge computing is favored over cloud computing in distant locations where there is restricted or no connectivity to a centralized location. These areas require local storage that functions like a miniature data center, with edge computing being the perfect solution for it.

Edge computing is also advantageous for specialized and intelligent devices. Although these devices resemble PCs, they are not general-purpose computing devices designed to perform various functions. These specialized computing devices are gifted and respond to specific machines in a particular way. However, this specialization can be a disadvantage for edge computing in a few industries that require immediate responses.

Thus, we have discussed the differences between edge computing and cloud computing. In the following sections, you will delve into the future of these platforms in greater detail.

How Does Edge Computing Reduce Latency ?

Edge computing owns the capability to decrease latency by lowering the gap between the network’s edge and processing power. This edge technology smartly creates edge devices like IoT sensors.

Latency As A Significant Challenge For End-Users

While some users of smart devices may not be bothered by latency, it can have severe consequences for other devices. For example, autonomous cars depend on regular communication with the cloud to operate their self-driving and machine vision algorithms, and even slight latency can significantly affect their performance. It can result in inconsistent behavior and glitches, leading to dangerous driving or accidents.

Surgery robots, which enable telesurgery, also require a near-real-time connection to the cloud. These robots can help make surgery more accessible and minimize pain, but latency can cause delays in processing, resulting in unusual behavior that can make surgery with robotics more difficult. Even for devices where latency is not a matter of life or death, it can still negatively affect their performance.

How Does Edge Computing Lessen Latency For End Users?

Latency, or delay in data processing, can significantly reduce the performance of smart devices that rely on the cloud for useful data storage and analysis. These devices typically don’t have enough processing power or storage to perform all the necessary analysis on-device, so they send some of the work to the cloud. However, the cloud can be far away from the devices on the “edge” of the network, resulting in delays in data processing and analysis.

Edge computing reduces latency by moving some of the work that stereotypically takes place in the cloud to the “edge” of the network, which is closer to end-users and their devices. Edge nodes, decentralized data centers, can handle some of the work normally done on the cloud, and edge devices themselves can also handle some computing work.

Edge computing systems determine which information needs cloud processing and which information can be handled locally to reduce latency. Tasks requiring greater processing power or storage or work that isn’t a top priority are sent to the cloud for processing. Higher-priority work is kept local to reduce latency on important analyses.

As responsive or real-time data processing becomes more important, businesses are turning to edge computing as a solution for the problem of latency in internet-connected edge devices. According to Gartner, the fraction of enterprise-generated data processed outside an old-style centralized data center or cloud will grow from 10% to 75% by 2025.

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Edge Computing Advantages

Edge Computing Advantages

Energy reduction by Chicago Smart City Lighting, reduced dependence on centralized cloud servers by Walmart and repurposed existing real estate by FedEx, Dell, and Switch are the best examples of edge computing in the real world. 

How Can Edge Computing Be Used To Improve Sustainability ?

Edge computing can improve device speed and performance by keeping processing close to the device, which helps to reduce costs and increase efficiency. However, there are other reasons why companies should consider using edge computing to reduce environmental impacts.

One of the unique benefits of edge computing is that it reduces networking traffic going in and out of centralized servers, which reduces bandwidth and energy consumption. This frees up bandwidth at the data center and for any centralized servers on-premises. Furthermore, data that requires processing in the cloud tends to be more useful data, which is limited by the constraints of the edge device. The device handles what it can and sends only the critical data (if any) to the cloud. These natural limitations prevent unnecessary processing or sprawl.

Many companies can use existing devices rather than invest in new equipment when moving to the cloud. With edge computing, many companies already have sensors and devices that are currently underutilized. By processing data locally instead of sending everything to the cloud, companies can reduce their dependence on the central cloud and their contributions to energy consumption.

Edge computing is designed for efficiency, as the device’s hardware naturally restricts resources on edge devices. Every aspect of an edge stack is optimized to work efficiently. Additionally, many devices can run even without a continuous internet connection, allowing processing to continue offline and further reducing overall energy consumption.

Advantages Of Edge Computing

Edge computing offers several benefits, making it a valuable tool for enterprises. Firstly, edge computing reduces latency, which can be critical in situations such as autonomous vehicles or digital factories where milliseconds matter. By processing data at the edge, enterprises can improve response times and make their data more relevant and actionable. Additionally, edge computing can improve security by distributing data analysis tools across the enterprise, reducing the impact of a potential DDoS attack. This also helps companies comply with local privacy and data sovereignty regulations.

Edge computing can also lead to cost savings by allowing enterprises to categorize data based on value and retain critical data at the edge to reduce the need for costly bandwidth. By reducing redundant storage, enterprises can also reduce redundant costs. Edge computing can also improve reliability, particularly in remote areas with limited connectivity, by allowing devices to store and process data locally. Finally, edge computing can offer scalability advantages by enabling IoT devices to be deployed with processing and data management tools at the edge rather than waiting for coordination efforts from multiple sites.

Overall, edge computing can help enterprises save more, optimize their data flow and improve efficiency, security, reliability, and scalability. While it may not eliminate the need for the cloud, edge computing can complement it to provide a more comprehensive and effective solution.

Types Of Edge Computing

Edge computing has become essential for companies seeking to enhance their performance, reduce latency, and power new use cases such as artificial intelligence, automation, and machine learning applications. By leveraging edge computing, organizations can create new business models, software service models, revenue streams, and technological use cases. With its ability to offer faster processing times and improve overall performance, edge computing has become a valuable resource for companies seeking to innovate and stay ahead in today’s competitive business landscape.

Edge computing solutions are a popular choice for companies because they enable computing to take place closer to the end-user devices, resulting in quicker processing and response times for data. From cloud and edge computing to 5g and edge computing to edge computing solutions, a variety of edge matters the most. These include: 

Edge Types The Technology 

  • Device edge
  • Cloud edge
  • Compute edge 
  • Sensor edge 

Edge Types By Location

  • Enterprise edge
  • Branch edge
  • Mobile edge

To ensure the effective implementation of edge computing, it is essential to separate it into multiple layers based on factors such as physical location, latency, security requirements, scalability, data locality, connectivity management, on-premises requirements, end-user proximity, real-time communication needs, and service capabilities. These factors significantly influence the design, architecture, and deployment decisions for practical application. Therefore, evaluating your requirements and needs first before upgrading your current infrastructure is crucial to ensure a successful deployment of edge computing technology.


Edge computing technology is an innovative technology that enables companies to process data closer to end-user devices, reducing latency and improving response times. The benefits of edge computing solutions go beyond just speed and latency, as it also offers improved security, cost savings, greater reliability, and scalability. However, deploying an edge computing solution requires careful consideration of various factors such as physical location, security requirements, scale needs, and connectivity management. When you need to know what edge computing is, experienced and competent edge solution providers in India can help you with quality computing solutions.

Despite the challenges, edge computing has proven to be a game-changer for many companies seeking to optimize their business operations and stay ahead of the competition. By leveraging the power of edge computing, companies can make their data more relevant, useful, and actionable, ultimately saving them more time, money, and resources. As the world becomes increasingly connected and data-driven, edge computing will play a vital role in helping companies extract value from their data and gain a competitive edge in the marketplace.


Fonada, a trusted CPaaS & cloud telephony solution provider in India, is popularly known for revolutionizing communication with Cutting-Edge Technology. Our advanced customer engagement solutions, including Voice, Messaging (SMS & RCS), WhatsApp Business, and Conversational AI tools are designed to empower individuals and businesses to communicate effortlessly and efficiently. Embark on a journey into the future of communication with Fonada, and unlock a world of seamless connectivity and productivity.

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