Skip to content
‹ Back to IndustriesEngineering & Construction

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 Engineering & Construction teams put it to work with Partner & Channel Enablement.

·
Share

Free workspace

Turn your Engineering & Construction 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 Engineering & Construction starts with a company putting its project engineers, superintendents, and estimators on the record. Buyers are already reading this topic. The only question is whose experts they find.

Owners shortlist firms they already trust, and your field leaders become the reason your name is on that list.

Book DemoSee how it works15 minutes, straight to a calendar.
B2B Weekly

The week in Engineering & Construction, and sixteen other industries, every Monday.

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

Engineering & Construction: are you visible to AI?

Before they reach out, Engineering & Construction 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 Engineering & Construction expert. Your company is full of them.

This article was produced through MarketScale. The same platform turns your project engineers, superintendents, and estimators into the articles, video, and social content Engineering & Construction 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 Engineering & Construction Insights

Bain Capital's reported $250M minority investment values construction platform Kahua above $1B

Bain Capital's reported $250M minority investment values construction platform Kahua above $1B

Bain Capital's Tech Opportunities fund is putting a reported $250 million into Kahua at a valuation above $1 billion. The deal follows what Kahua says is $100 million in annualized revenue. The bet rests on owner-side program data, with AI features the next sign to watch for hospitals, ports and school builders.

  • 01Kahua is selling AI on the strength of the governed data owners already keep in it. That makes data quality and permissions the place to test any new AI feature it ships.

Oct 1, 2026

Element’s Charlotte lab makes tensile specimens from turbine blade roots

Element’s Charlotte lab makes tensile specimens from turbine blade roots

Element Materials Technology’s Charlotte lab wire-EDMs one-eighth-inch cylinders from the root of a turbine blade and low-stress grinds them into tensile specimens—work value stream manager Daniel Steele says he’s not aware other labs do at this size. The lab, which invested $3.2 million in 2019 according to Aerospace Manufacturing and Design, is adding creep and stress rupture frames under a lease signed in January.

  • 01The extraction know-how has a paper trail: Aerospace Manufacturing and Design reported in March 2019 that Element’s $3.2 million Charlotte investment included EDM plunge machines—and that Charlotte was the first Element lab to install them for extracting cylindrical specimen blanks.
  • 02Deloitte's November 2025 outlook put manufacturing construction spending down 7% year over year by July 2025, so a lab adding floor space and creep frames is growing inside one of the few pockets Deloitte flagged for expansion.

Sep 30, 2026

NMHC survey: 37% raised pricing on projects on hold

NMHC survey: 37% raised pricing on projects on hold

NMHC's September construction survey found 37% of respondents repriced shelved projects upward, versus 17% in June. Starts slowed too: 29% of firms started fewer projects, and a growing share saw labor and material costs outrun inflation.

  • 01Upward repricing of projects held three to six months rose from 17% of survey respondents in June to 37% in September, while downward repricing fell from 38% to 14%.

Sep 28, 2026

Explore More Engineering & Construction Insights

Read more expert perspectives from across Engineering & Construction.

Browse Engineering & Construction Hub

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 Engineering & Construction and beyond.

Book a Demo

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