Skip to content
‹ Back to IndustriesSoftware & Technology

And Back to the Edge: Why Edge Computing is Gaining Ground on the Cloud

It wasn’t so long ago that cloud computing was the trending topic as the growth of the wireless industry and new technology implementations led to rapid migration from on-premises data centers to cloud servers. According to a Gartner Forecast study, over a third of organizations consider cloud computing as one of their top three investment…

This story was produced through MarketScale. See how Software & Technology teams put it to work with Executive Thought Leadership.

By Software And Technology · · Edge ComputingStudiodoc
Share

Key takeaways

01

It wasn’t so long ago that cloud computing was the trending topic as the growth of the wireless industry and new technology implementations led to rapid migration from on-premises data centers to cloud servers.

02

According to a Gartner Forecast study, over a third of organizations consider cloud computing as one of their top three investment…

Free workspace

Turn your Software & Technology expertise into content.

Record interviews, organize footage, and write with AI on a free trial of the MarketScale platform for qualifying companies. No demo required, no credit card.

Try it Free

It wasn’t so long ago that cloud computing was the trending topic as the growth of the wireless industry and new technology implementations led to rapid migration from on-premises data centers to cloud servers. According to a Gartner Forecast study, over a third of organizations consider cloud computing as one of their top three investment priorities.

However, cloud computing isn’t without its limitations. It requires significant bandwidth and struggles with latency, making it challenging to use with sophisticated industrial IoT applications, which require real-time computation.

Enter: Edge Computing.

The next big solution in the computing space is the “edge.”

When you think of the word “edge,” thoughts of the end of an object or place immediately come to mind, like the blade of a knife or cliff of a mountain. In this application, however, the “end” actually means the start.

While cloud computing continues to serve its purpose of storing a computer’s system resources on-demand, its ease of use for performing and relaying data back involves much traversing.

That’s where edge computing comes in, bringing the power of the cloud closer to the customer. Edge computing can be used solo or in addition to cloud, and it provides customers with a boosted network performance, increase in reliability, and often a decrease in costs, thereby solving bandwidth and latency issues.

 IT professionals have realized that moving their computational power closer to the edge enables the kind of real-time delivery that is necessary for many industries such as oil and gas, retail, and manufacturing. But – going with cloud, edge, or both will depend on a customer’s needs.

Cloud vs. Edge Computing: Which makes sense?

Like any alternative solution or add on, cloud and edge computing have pros and cons.

For instance, when using wireless, cloud computing may require data, which can get costly, and this is where edge can help. Senior Director of Engineering for Digi International, Ken Bednasz, explained, “The cost of memory is going down; the amount of processing power is increasing tenfold.”

With edge computing significantly growing the last five years, customers can now look at their needs and determine which option makes most sense to help optimize their workflows and processes. Considering factors like data size, time sensitivity, innovation, extra security/privacy, and redundancy are all needs that may push a customer to choose or add on edge.

While some may waffle between the choices, many customers will easily be able to choose based on their compliance and regulatory requirements. Jessie LaCome, principal technical marketing engineer at Dell, explained, “You’ve got heavily regulated environments that will never see the cloud.” This is due to the cloud storing its data ‘out of immediate reach’ from customers, and the edge or more traditional data centers are seen as more secure because of their proximity.

Conversely, those with data intensive applications requiring a lot of storage will want to opt for — at minimum — utilizing the cloud. This could look like supply chain management systems or CRMs where customers or vendors need to interact with a company’s applications. However, CEO of Hivecell, Jeffrey Ricker, and LaCome both warned it could add up quickly due to things like vendor contract lock-ins, data storage, data sent, and time. “The only thing that’s constant in a cloud billing right now is that it goes up every month,” Ricker said.

Clearly, each computing holds its own set of perks, and edge is making data storage even more accessible. However, adding a new platform to the mix isn’t always that easy.

Barriers to Interoperability

Because the edge is relatively new, there will be some expected growing pains. For instance, most systems were built to work with either the cloud or edge, leaving customers with a lack of interoperability. “It tends to cost a lot of money and take a lot of time to actually reconfigure these applications,” said Vice President of Harbor Research, Harry Pascarella.

Clearly, this leads to concerns about variability of the applications being able to easily ‘talk’ to both computing options, which leaves customers wondering about the reliability of the platforms working together. Pascarella advised that knowing the application requirements before adopting a new solution is of utmost importance.

Thankfully, as more customers demand more solutions, the interoperability will inevitably catch up to fully optimize these applications — more devices will become connected and new processes will unfold to help decrease workloads and increase automation.

Why Edge and Why Now?

Much like the cloud before it, edge computing is expected to continue growing at a rapid pace. According to a study from marketsandmarkets, the edge computing market size is expected to grow from 36.5 billion dollars in 2021 to 87.3 billion dollars by 2026, at a compound annual growth rate of 19.0% during the forecast period.

For companies that want to use their IoT data to increase customer satisfaction and efficiency, deploying the edge at scale is necessary to properly work that information. “Raw internet data — IoT data — versus business-relevant data starts at about 400 to one. That means there’s at least 400 bytes of raw data for every byte of meaningful data that you should be pushing to the cloud,” Ricker explained. However, experts want industries who rely on or are looking for edge solutions to recognize that it isn’t a replacement for the cloud, merely a branch of the same tree.

For instance, when the machine learning models are configured properly, having the platform filter out the relevant data at the source and then pushing those figures to the cloud, is where current organizations are winning today in utilizing both computing solutions. Jason Shepherd, VP of Ecosystem at ZEDEDA, said, “The edge is not going to completely replace the cloud by any means… The edge is the last cloud to build. It’s extending the footprint to be more distributed.”

Ultimately, companies already utilizing the edge are seeing major cost savings, increased security, and quicker action.

The challenge for IT professionals moving forward will be to evaluate the strengths and weaknesses of the edge and the cloud and make an informed decision that best meets their particular needs. One thing is clear, though – we’re only on the precipice of growth for the edge.

Your experts belong here

Every story in MarketScale Software & Technology starts with a company putting its solutions engineers, product teams, and customer engineers on the record. Buyers are already reading this topic. The only question is whose experts they find.

Buyers ask AI engines who to consider, and published expert answers are what those engines cite.

Book DemoSee how it works15 minutes, straight to a calendar.

About the author

SA
Software And Technology
B2B Weekly

The week in Software & Technology, and sixteen other industries, every Monday.

Ten stories, one-line takes, five minutes. Free.

Software & Technology: are you visible to AI?

Before they reach out, Software & Technology buyers ask AI engines which vendors to trust. Explore how your experts, customers, and partners can become useful content for buyers and AI search.

Free Trial

You just read one Software & Technology expert. Your company is full of them.

This article was produced through MarketScale. The same platform turns your solutions engineers, product teams, and customer engineers into the articles, video, and social content Software & Technology buyers are searching for. Start a free trial and see it with your own people. For qualifying companies, no credit card, no demo required.

NPS +73 · 1,000+ creators · 38+ countries

What your free trial includes

Hands-on access to the MarketScale platform
Media requests to your crowd, remote recording, AI writing tools
No demo required. No credit card.
For qualifying companies. Company confirmation required.

More Software & Technology Insights

OpenAI wants its data centers called compute campuses as voter opposition hits 73%

OpenAI wants its data centers called compute campuses as voter opposition hits 73%

An OpenAI spokesperson confirmed to Business Insider on November 1 that the company now prefers the term "compute campuses" for its data centers, and Axios reported the label is part of a policy and public relations push planned for after the midterm elections. A Quinnipiac poll of registered voters found 73% would oppose an AI data center in their community, and Pew and Heatmap surveys show similar opposition. By The Verge's account, the term first appeared on OpenAI's site in the November 2 announcement of its Grid Protectors Program, which starts with a planned Effingham County, Georgia campus where OpenAI will pay full infrastructure costs and accept up to 1,000 megawatts of curtailment. Critics quoted by The Verge said a new name does not fix the underlying concerns.

  • 01OpenAI confirmed the term "compute campuses" to Business Insider on November 1, and Axios reported it as part of a post-midterm policy and public relations push.
  • 02Quinnipiac found 73% of registered voters oppose an AI data center in their community, Pew found 54% call data centers mostly bad for the environment, and Heatmap found 75% oppose one nearby.
  • 03The Georgia template behind the rebrand: OpenAI pays full infrastructure costs for a 3,200-megawatt Effingham County campus and accepts up to 1,000 megawatts of curtailment under a 25-year Georgia Power agreement.

Nov 3, 2026

IndiaMART moves B2B buying from search to decision with agentic AI

IndiaMART moves B2B buying from search to decision with agentic AI

IndiaMART CIO Nikhil Prabhakar says B2B buying is moving from a search journey to a decision journey, with agents shifting more work onto the platform. A seller-side agent that answers enquiries comes next.

  • 01When software builds the shortlist, a supplier’s response rate and catalogue completeness can shape whether it gets shortlisted.
  • 02IndiaMART's planned seller agent learns from past Lead Manager conversations, and each seller sets how much it may send without review, a workable autonomy model for anyone automating sales follow-up.
  • 03Standardized, repeat purchases are expected to move to agents first while complex procurement keeps human judgment central, which tells suppliers which product lines to structure first.

Nov 3, 2026

As AI Chips Near 4,000 Watts, Liquid Cooling Becomes the Backbone of Data Center Design

As AI Chips Near 4,000 Watts, Liquid Cooling Becomes the Backbone of Data Center Design

Rising AI power density is pushing data centers from air to liquid cooling, with racks trending toward megawatt scale.

  • 01Data center electricity demand rose 17% in 2025, with AI-specific demand projected to triple by 2030, as racks head toward the megawatt range.
  • 02Leading-edge GPUs will exceed 4,000 W thermal design power by 2029, pushing air cooling beyond practical limits and accelerating adoption of two-phase direct liquid cooling.
  • 03Accelsius says NeuCool can cool 4,500W+ per socket and that warmer facility water can deliver about 4% annual energy savings per °C.

Nov 2, 2026

Explore More Software & Technology Insights

Read more expert perspectives from across Software & Technology.

Browse Software & Technology Hub

About the Expert

SA
Software And Technology

For B2B teams

Your experts could be publishing here

Stories like this one run on content MarketScale captures from real practitioners. See how your team's expertise becomes coverage in Software & Technology and beyond.

Book a Demo

Or call us. No forms required. We pick up. 214-945-2512