Last Updated on January 10, 2025 by Ash
Technology is changing faster than ever before. This is to be expected with the rise of AI. The evolution of technology in the workplace means businesses must work harder to keep up. If they don’t, they will lag behind the competition.
Fortunately, there are several ways for businesses to stay ahead and grow. For example, edge computing is rising in popularity quite steadily. This networking technology makes it easier for companies to process data quickly and efficiently.
But is this technology right for your business? Keep reading to discover the benefits and challenges of edge computing in 2025. By the end, you will clearly understand where edge computing fits into your business.
What Does Edge Computing Mean?
Edge computing means your business processes data close to where it is created. You do not have to send the data to a distant cloud server. Instead, you can manage it near the original source. This option reduces delays and makes it easier for your business to speed up responses.
For instance, think of a security camera that watches over your department store. With edge computing, you do not have to send the footage to a distant cloud server. The technology allows the camera to process all footage locally. Edge computing makes the security system (camera footage) faster and more reliable.
If your business relies on real-time data processing, edge computing will benefit you. It is one of the most popular network technologies for massive manufacturing, retail, healthcare, and transportation industries.
Instead of waiting for data to be sent back and forth from a remote service, you have the information to make important business decisions.
How Does Edge Computing Work?
The focus of edge computing is location. The technology uses ‘edge devices’ to analyze and process data, sending only necessary information to the cloud. This process reduces the amount of data that travels long distances.
Edge devices include smart sensors, smart cameras, local services, and IoT devices.
For example, you can use IoT sensors to detect machine temperature changes if you run a factory. Traditionally, all data would have been sent to the cloud. With edge computing, only important alerts are sent. This saves you bandwidth and allows you to maintain the machines faster, preventing a breakdown.
Benefits of Edge Computing
There are several benefits to using edge computing in your business. These include:
- Extremely fast speeds. It is logical that processing data locally means faster results. Edge computing is necessary if your business is in a critical industry that needs instant decisions.
For instance, edge computing in a hospital means real-time monitoring of vital signs. This allows doctors to make urgent decisions without delay, which could save lives. - Less internet traffic. The internet is crammed full of traffic (considering the number of people that use it. If your business relies on edge computing, it sends less data to the cloud. This means less network congestion.
With less internet traffic comes lower costs and smoother operations. If your business relies on video surveillance, you will know how much it benefits from edge computing. You will not have to continue streaming high-quality video since only important footage is uploaded to the cloud. - Improved security. If you keep your business data close to its source, you reduce the risk of cyberattacks. The further data has to travel, the more vulnerable it becomes to cyber threats.
So, if you have a financial company, it is usually best to process transactions locally. Doing this will better protect your customers’ data than constantly sending it to a cloud server.
- Better Reliability. Edge computing technology works even if the internet connection goes down. It is a valuable tool for remote locations, hospitals, factories, etc.
For instance, if a power plant uses edge computing, it can continue functioning if the cloud server goes off. - Cost savings. Whether you have a small or large business, cost savings will always be at the top of your to-do list. By sending less data to the cloud, edge computing can save your business money. The less data sent, the less you pay for storage and bandwidth.
The Downside of Edge Computing
Unfortunately, edge computing technology is not perfect. If you are introducing it in your business for the first time, there are some challenges to be aware of.
- Potentially high upfront cost. You will have to invest in hardware and software to use edge computing. This means buying edge devices and setting up local servers. If you have a small business, this could be outside of your budget.
- Maintenance. The more edge devices you implement, the more maintenance is required. Over time, this can become complicated and expensive. With a cloud-based solution, the provider takes care of maintenance. Edge computing will require you to manage and maintain the hardware at your own cost.
- Security risks. Edge computing improves security in some ways but can also create risks. For instance, if you have a lot of devices, you create more entry points for sophisticated hackers.
You must have several impenetrable security measures to curb cybercrime in your business. These should include encryption and secure access controls. - Limited storage. Edge devices generally offer less storage than cloud servers. It will be up to you to decide what data to keep and what to delete. If you have a large facility or plant, you must clear unnecessary data regularly to keep operations running smoothly.
Is Edge Computing Right for You?
Ultimately, it is up to you whether you want to implement edge computing in your business. If you need real-time data processing and want to reduce cloud storage costs, edge computing could work for you.
The same applies if you regularly work with sensitive data that is put at risk because of an unreliable internet connection.
Edge computing may be a good choice if you can cover the upfront costs without harming your business.
Edge Computing Can Help Your Business Thrive
As noted above, there are benefits and risks to implementing edge computing in your business. It is important to weigh the pros and cons before investing in this technology.
However, it is also important to consider the competitive advantage your business could gain by using edge computing correctly.
If the pros outweigh the cons, you hardly have anything to lose by investing in edge computing.