Edge computing has been promising so far, but it is still evolving. By 2021, new business models will emerge that will facilitate the use of edge in production.
The new business models that will take edge computing “from science project to real value” in 2021 will be based on two factors, Cloud platforms must compete with artificial intelligence, and the widespread adoption of 5G will make edge computing use cases more practical.
With these two drivers in mind, we can have predictions about how the evolution of the technology world will directly impact edge computing in 2021.
Edge hosting will become a mature market
Content delivery networks are beginning to meet the need for edge computing, prompting them to turn to host companies to find small, widely distributed data centers where applications can be hosted closer to the people to serve them as fast as possible.
Even large hosting companies lack the local presence needed to meet the demands of edge computing, and that the small local businesses needed to complete edge services are often overshadowed by these larger companies.
By 2021, hosting market aggregators will be attractive options for CDNs and world-leading hosting providers that meet the needs of businesses (including those in rural areas).
Artificial intelligence is leaving the data center to the limit
The use of AI in edge computing will change dramatically by 2021: Learning will begin at the edge instead of training machine learning models in the data center.
This shift will be possible thanks to new chips from Intel and Nvidia and new machine learning technologies such as augmented and federated learning. By 2021, applied intelligence will thrive at the frontier to accelerate digital transformation, especially in industries where the physical and digital worlds need to be connected in real-time.
Dedicated 5G networks will be widely deployed
5G, which is offered nationwide by major telecommunications networks, will not be enough to meet the demand for edge computing. Instead, there will be dedicated 5G networks provided and developed by manufacturers such as Ericsson, Huawei, and Nokia.
By 2021, dedicated 5G networks will be used for factory floor automation, AR/VR, and other scenarios for remote inspection, monitoring, quality assurance, remote monitoring, preventive maintenance, and employee security.
The growth of the public cloud will slow down while Edge spending increases
The public cloud market will grow from 42% in 2018 to 24% in 2022 as the market matures. Instead, there will be an explosion in edge computing growth, which means growth will be even greater for companies that have already invested in cloud-like edge computing and content delivery solutions (as opposed to centralized data centers).
Public cloud units will not disappear, but they will not dominate the future of distributed computing. “Their culture is based on massive data centers and tight control over the architecture, which is the opposite of what companies need to provide on-site services to their customers. Providers with a winning formula will do better with it”.