Decentralising Digital Infrastructure: Enabling Digital Transformation Through Edge Data Centers

By: Vartul Mittal, Technology & Innovation Specialist

Due to societal trends, technology trends, or market trends, the demand for agility, speed, and localised computing is quickly rising in this digital era. The centralised data centers can be considered very useful as they are reliable, however, the concept of real-time processing has risen to such levels that the traditional methods are found inadequate.

As organisations take their first step towards digital change, the use of edge data centers in the decentralisation of digital infrastructure proves to be an essential feature in this development. It is essential to analyse the meaning of edge data centers, their relevance in the decentralisation of digital infrastructure, and their ability to assist businesses in the conduct of effortless digital transformation.

What are edge data centers?

Edge nodes are small distribution data centers that move the computation and storage of information physically closer to the origin of, or point of consumption, of the data. While traditional data centers are designed to be at certain major geographic locations, edge data centers are positioned at various geographic locations and relatively closer to the devices and users they serve. This enables data to be processed in the exact location where it’s used to minimise the time taken in processing thus reducing lag and enhancing the effectiveness of services, which has become part of the current trends.

The role of edge data centers in digital transformation

The digital transformation is primarily concerned with the effective and efficient use of information and communication technologies in the creation of new business paradigms, or the enhancement of existing ones to adapt to new business and market demands. Edge data centers can be regarded as an important dimension to facilitate this transformation in a number of ways:

Real-time data processing: Real-time information at every stage of an operation is critical for any industry – be it healthcare, manufacturing or autonomous vehicles. Edge data centers help achieve this containment by facilitating real-time operation processing due to reduced latency. Such capabilities are very important for remote surgeries, active management of production processes, and navigation of autonomous vehicles where decisions have to be taken in real-time.

Enhanced user experience: Edge data centers enhance user experience by bridging the gap in content delivery as internet users keep growing. Edge data centers, which focuses more on offloading caching and computing tasks to the edge of the network, lead to better user satisfaction through quicker load times, better streaming, and thus smoother overall application performance, especially on computer gaming and online video applications.

Scalability and flexibility: The growth of all businesses is accompanied by an extended presence in the digital space, for which infrastructure has to be both scalable and flexible. Edge data centers offer the scalability necessary to increase the data volume being handled whilst contending with performance. In addition to that, the distributed nature of these centres makes it easy for organisations to integrate new edge sites during installations as per the requirement of the business changing.

Data sovereignty and compliance: Edge data centers come as a way for organisations with operations in different geographical regions to remain compliant with data privacy requirements. As edge data centers serve as localised servers, this saves organisations from breaching data sovereignty requirements which impose restrictions on the geographical location of data storage.

Reduced network congestion: This has been because of the skyrocketing number of IoT devices as well as the rise of applications that require a lot of data. Subsequently, edge data centers reduce network traffic by delegating the processing of data from the central network to the outer edge. This not only enhances the efficiency of the network but also lessens the chances of congestion and breakdowns.

The strategic benefits of decentralised digital infrastructure

By decentralising digital infrastructure using edge data centers, organisations get to enhance their strategic posture in several ways. Redundancy is an important aspect of a recovery plan. Hence network infrastructure with edge data centers can be regarded as better compared to traditional models infrastructure that is centralised. When a single edge location fails in the network, the loss sustained by the system at large is limited, since other edge locations are still capable to function. This redundancy is very important where systems cannot afford to go down and lose large sums of money or worse, lose lives.

Though the location of the data centres is close to the edge of the networks, substantial cost savings can be made by eliminating expensive long-haul data transmission and improving resource allocation. Because less data needs to be sent to centralised cloud servers and it is processed close to its source. There are significant cost savings in telecommunication expenses as well.

Speed is the order of the day in any industry. Speed in business is a requisite due to intense competition. Edge data centers reduce reliance on conventional infrastructures making it possible to roll out new applications and services faster than before. They encourage and make it possible to launch new products and services quicker than rivals in the market.

Considering the climate change impact and environment damage due to industrialisation, it important for organisations to have the responsibility to promote energy efficiency by cutting down energy usage for transmitting data. Since edge data centers are relatively closer to users, there is no need for strenuous long-distance transfer of data which contributes carbon dioxide to digital initiatives.

Challenges and considerations in implementing edge data centers

While edge data centers offer numerous benefits, their implementation comes with its own set of challenges and considerations.

The distributed nature of edge data centers carries with it additional security vulnerabilities because all edge sites can serve as new attack vectors. In this regard, organisations have to ensure that there is enough security on their edges since they are vulnerable to sabotage. In addition, there is also the issue of operating a distributed structure of edge data centers which can be very demanding in terms of monitoring, managing, and upgrading a number of sites. Organisations are required to deploy new management tools and plans to keep the edge operations functioning effectively.

Interoperability is another factor to be considered between edge data centers and existing centralised infrastructure is crucial for a seamless digital transformation. In the strategic planning of edge data center, considering the potential link with the current centralised infrastructure is vital for the effective transition. It is essential for organisations to strategise on their edge deployments so as to allow the seamless transition of data between edge and core systems. In addition, there is a lot of money required when it comes to creating and establishing edge data center. Organisations need to assess the profitability and the benefits of edge computing in the long run to make sure that the initial costs are worth it.

The future of edge data centers in digital transformation

Looking into the next phase of the digital transformation journey, edge data centers are likely to become increasingly critical. Further, the 5G growth, increasing number of IoT devices, and the need to process information as it comes will only accelerate the edge computing adoption. In the future, more organisations will use edge data centers in building flexible and reliable digital ecosystem that will help in the achievement of their transformation objectives.

Furthermore, new developments in edge computing including edge AI and edge analytics would help every organisation gain maximum satisfaction and benefit from their data. These technologies soon will facilitate extensive data handling and evaluation on the edge, further enhancing the capabilities of edge data centers.

Conclusion

Decentralising digital infrastructure through edge data centers represents a significant shift that enables organisations to address the challenges of the digital age. By situating computing resources nearer to data generation sites, edge data centers facilitate real-time data processing, enhance user experiences, and bolster resilience. As organisations advance in their digital transformation efforts, edge data centers will be vital in helping them fulfill strategic goals, promote innovation, and maintain a competitive edge. The future of digital transformation is centered on the edge, and those who embrace this change will be well-equipped to excel in the digital landscape.

[Disclaimer: “The views expressed in this article are mine and my employer does not subscribe to the substance or veracity of my views.”]

About the Author

Vartul Mittal is a 40 Under 40 Distinguished Digital Transformation Expert and is ranked in the Top 100 Innovative CIOs.