Companies in Germany are Turning to the Cloud
“There have never been more cloud applications in German companies than today,” reports Jerome Evans, founder and CEO of firstcolo GmbH based in Frankfurt. Numbers support his statement: According to the Cloud Monitor 2021 by bitkom research and KPMG, 82 percent of the 556 companies surveyed use cloud computing. Another 15 percent plan to do so in the near future. However, it will not remain the only option in the data processing market for long.
In recent years, other computing systems such as edge have emerged. Experts mainly attribute this boom to the increase in “Internet of Things” or IoT devices in recent times. The IoT refers to a network of devices equipped with sensors that are interconnected and exchange data over the internet. But what does edge computing mean, what are the differences from cloud data processing, and will it replace it in the future?
Edge Computing Means Local Instead of Central
While the cloud is increasingly becoming the standard in information technology, edge computing is an area where many companies have recently focused their investment interest. It involves decentralized data processing at the edge of a network, with a possible or limited connection to a large data center.
“Edge computing consists of a network of many micro data centers that process locally generated data directly at the source,” explains Evans. This usually happens directly in the end device. A distinction is made between thick-edge and thin-edge devices. The former offer little storage capacity or computing power and can therefore only handle tasks with low IT resources. In contrast, thick-edge devices have extensive IT capacity and also take on tasks of the cloud.
Advantages and Disadvantages of Cloud and Edge Computing
One argument for processing data at the edge is the low latency. “This is a crucial factor for many IoT devices, such as self-driving cars, which require real-time data transmission,” explains Evans. It offers an efficient and cost-effective solution to process large amounts of data locally without forwarding sensitive company data. However, there are also some significant disadvantages compared to cloud computing. For example, the setup usually incurs higher costs or greater effort.
Additionally, the reliability of the connection can fluctuate significantly if a single device fails. Ensuring security at the edge of the network remains particularly challenging. “Cloud computing systems offer a protective central structure where operators securely process data in a data center against cyberattacks,” explains Evans. Ensuring security is more difficult with edge devices due to the spatial distribution and number of devices. Specially trained personnel must protect the devices through regular maintenance, updates, and restricted access. These tasks are often taken over by external colocation service providers.
Weighing the Decision for Edge or Cloud
Many companies today are responsible for managing an ever-growing stream of data, which they must process and store securely. In the near future, they will have to choose the right strategy from the various options available. “In this context, the edge alternative does not naturally displace cloud computing from the data processing market. Both offer different solutions for various challenges of modern society,” says Evans.
In particular, edge computing is interesting for companies that need real-time data processing: It thus provides an important tool for IoT devices. “For all other businesses, the cloud usually remains the most reliable partner, as it scores with its security, global scalability, and lower costs,” concludes the expert.
