What is Edge computing and the future of Cloud computing

Businesses need smarter, faster ways to manage data and provide real-time experiences to users.

Enter edge computing—a technology that shifts data processing closer to where it’s generated.

This blog explores what edge computing is, how it differs from traditional cloud models, its symbiotic relationship with cloud computing, and why Microsoft’s Azure Edge services are setting the standard for businesses embracing this new paradigm.

Here’s the bottom line: Edge computing doesn’t replace cloud computing; it enhances it. By decentralising processing, it helps businesses conquer latency and bandwidth challenges while still taking full advantage of the cloud’s scalability.

Statistic to consider: The global edge computing market is expected to grow to $155.9 billion by 2030, driven by the explosion of IoT devices and demand for low-latency processing, according to Grand View Research.

What is Edge computing?

So, what exactly is edge computing?

It’s the practice of moving data storage and processing closer to the “edge” of the network—near the devices generating the data, like IoT sensors, smartphones, or autonomous vehicles. Unlike traditional cloud computing, which relies on centralised data centres, edge computing handles data locally or in nearby micro data centres, enabling faster and more efficient processing.

In short, edge computing brings data processing closer to the data source.

“Organisations that have embarked on a digital business journey have realised that a more decentralised approach is required to address digital business infrastructure requirements,” says Santhosh Rao, senior research director at Gartner. “As the volume and velocity of data increases, so too does the inefficiency of streaming all this information to a cloud or data centre for processing.”

Why is it important?

One of the most significant advantages of edge computing is its ability to reduce latency. By minimising the distance data must travel, edge computing enables faster response times, a key requirement for industries relying on instant insights.

Additionally, this localised approach alleviates bandwidth usage by processing and filtering data at the source, sending only essential information to central cloud systems.

Security is another critical factor. Edge computing helps mitigate risks by keeping sensitive data closer to its origin, reducing exposure during transit to centralised data centres. Furthermore, as the number of IoT devices continues to grow exponentially, edge computing provides a scalable way to manage the massive volumes of data they generate without overloading traditional cloud systems.

Three reasons why Edge computing is critical:

• Real-time analytics: Reduces latency for time-sensitive applications like autonomous driving or medical imaging.
• Bandwidth optimisation: Minimises the need to transmit large volumes of data over long distances.
• IoT expansion: Essential for the seamless operation of billions of IoT devices expected to be online by 2030.

Cloud and Edge computing: A dynamic duo

Think of cloud computing and edge computing as complementary cousins working together seamlessly. Cloud computing is the dependable, resourceful cousin—handling centralised data processing, massive storage needs, and large-scale scalability. It’s the powerhouse that enables businesses to store vast datasets, run applications globally, and collaborate effortlessly.

Edge computing, meanwhile, is the agile, hands-on cousin. It operates closer to the action, processing data locally where it’s generated—whether that’s on IoT devices, autonomous vehicles, or within a smart factory. This proximity ensures lightning-fast response times, reduced latency, and optimised bandwidth.

Together, they’re a powerhouse team. In essence, cloud computing provides the robust backbone for extensive operations, while edge computing enables real-time, location-specific processing for time-sensitive tasks. By working hand in hand, they empower businesses to deliver faster, smarter, and more efficient data-driven strategies in today’s hyper-connected world.

Edge computing vs. Traditional cloud computing

Here’s how it looks in a visual breakdown:

Benefits of Edge computing

Notably, edge computing is transforming how businesses handle data, bringing significant advantages across various applications. By processing data closer to its source, edge computing offers critical benefits in the realms of IoT, real-time analytics, and low-latency applications.

Let’s examine it more closely:

Empowering IoT ecosystems

The explosive growth of IoT devices demands efficient ways to manage the vast volumes of data they generate. Edge computing provides a scalable solution by processing data locally, reducing the need to send everything to a central cloud. This not only optimises bandwidth, but also ensures seamless operation of connected devices—from smart homes to industrial sensors—allowing businesses to unlock the full potential of IoT.

Accelerating real-time analytics

In industries where split-second decisions matter, such as autonomous vehicles, healthcare, or financial trading, real-time insights are non-negotiable. Edge computing minimises the delay associated with data transmission by enabling immediate analysis at the source. This localised processing ensures faster decision-making and more responsive systems, enhancing operational efficiency and outcomes.

Enabling low-latency applications

Latency can be a critical barrier in applications like augmented reality, gaming, or remote surgery, where even milliseconds of delay can impact user experience or safety. Edge computing tackles this challenge by shortening the distance data travels, drastically reducing latency. As a result, businesses can deliver smoother, more reliable services that meet the demands of modern users.

Cloud and edge computing – How they work together

As discussed, edge computing and cloud computing form a powerful duo. While edge handles real-time, localised tasks, the cloud manages large-scale data storage and machine learning models. Together, they enable hybrid computing models that:

• Enhance operational efficiency.
• Ensure data security by keeping sensitive data local.
• Provide scalability for global operations.

For example, a smart factory may use edge computing for instant equipment monitoring and cloud computing to analyse production trends globally.

Edge computing by Microsoft – A great option

Microsoft’s edge computing model offers a seamless and powerful approach for businesses looking to harness the power of real-time data processing while leveraging cloud scalability.

At the heart of Microsoft’s edge computing offering is Azure Edge Services, a set of solutions that integrate local data processing with the expansive capabilities of Azure’s cloud platform. This hybrid approach combines the best of both worlds, providing businesses with the flexibility, speed, and security they need to stay competitive in an increasingly connected world.

Microsoft’s edge model: An integrated approach

So, how does it work?

Microsoft’s strategy focuses on enabling businesses to process data at the edge—closer to where it’s generated—while maintaining the seamless connection and scalability offered by Azure cloud solutions. Through services like Azure Stack Edge and Azure Edge Zones, Microsoft makes it easier for organisations to deploy edge solutions that meet their specific needs without sacrificing performance or security.

Key features of Microsoft’s edge services

Azure stack edge:

This service brings compute, storage, and intelligence to the edge, enabling real-time analytics and data processing with minimal latency. It’s ideal for industries like healthcare, manufacturing, and retail that rely on instant insights.

Azure edge zones:

These zones extend Azure’s cloud capabilities to deliver low-latency, high-bandwidth experiences by processing data locally or at the nearest data centre, adapting to growing data demands.

Azure Edge Zones are available in Australia and are part of Microsoft’s strategy to support low-latency, edge computing for high-demand applications, including those leveraging 5G technology. These Edge Zones are integrated with Azure regions and allow enterprises to deploy resources closer to end users, enhancing performance and enabling real-time processing.

Seamless Cloud integration:

Microsoft’s edge computing integrates smoothly with Azure, allowing businesses to process time-sensitive data on the edge while using the cloud for deeper analytics and scalability.

Security and compliance:

Azure’s edge solutions ensure data protection and compliance with local regulations, maintaining control over sensitive information while meeting security requirements.

Future of Edge computing

The future of edge computing is poised to reshape how data is processed, stored, and analysed. As more industries embrace hybrid models, edge computing is becoming an essential component for cloud providers. By combining local data processing with centralised cloud services, these hybrid models offer the best of both worlds—low-latency processing at the edge and the vast scalability and computing power of the cloud.

• For cloud providers, this means evolving their offerings to support distributed computing environments, ensuring seamless integration between edge and cloud infrastructures.
• For users, the benefits are clear: faster speeds, real-time analytics, and greater control over their data.

Edge computing allows businesses to process time-sensitive data locally while sending only relevant information to the cloud, ensuring better performance, reduced costs, and enhanced security. As this trend grows, edge computing will be a critical enabler for businesses looking to stay competitive in an increasingly connected world.

How Interactive can help transform your business with Azure edge

At Interactive, we understand the transformative potential of edge computing. As an end-to-end IT services provider, we help businesses leverage Azure Edge solutions to unlock new possibilities, enhance efficiency, and stay competitive.

By integrating Microsoft’s Azure Edge Services with your existing infrastructure, we enable organisations to process data closer to its source, ensuring faster response times and reduced latency. Our expertise in deploying Azure Stack Edge and Azure Edge Zones ensures that businesses can harness the power of hybrid cloud environments—processing critical data locally at the edge while maintaining the flexibility and scalability of Azure’s cloud capabilities.

Ready to embrace the edge revolution? Learn more about Interactive.

Explore our Cloud Services and discover how Azure Edge can propel your business forward.