Skip to content
MarketScale
‹ 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

Get featured

Want MarketScale to feature Engineering & Construction?

Book a 15-minute demo and we'll map your Engineering & Construction expertise to the content buyers are searching for.

Book a demo

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.

Get your team featuredSee how it works15 minutes, straight to a calendar.

Follow Engineering & Construction Insights

Get new expert content in your inbox.

Engineering & Construction: are you visible to AI?

Before they reach out, Engineering & Construction buyers ask AI engines which vendors to trust. See how AI describes your company today, and where competitors show up instead.

Free workspace

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. Create a free workspace and see it with your own people. No credit card, no demo required.

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

What you get, free

Your own MarketScale Studio workspace
One video edit a month, on us
AI writing, editing, and publishing tools
In-platform coaching to learn the system

More Engineering & Construction Insights

Procore acquires DroneDeploy for $845M, giving construction teams a direct line from drone data to project management

Procore acquires DroneDeploy for $845M, giving construction teams a direct line from drone data to project management

Procore has acquired DroneDeploy for $845 million, enhancing its construction project management capabilities. This acquisition integrates drone-based reality capture data with Procore's project management tools, streamlining the workflow between site data capture and management. The integration aims to improve efficiency and reduce gaps in construction project workflows.

  • 01Procore acquired DroneDeploy for $845 million.
  • 02The acquisition integrates drone data directly into construction project management.
  • 03This integration is expected to improve construction project efficiency and reduce data workflow gaps.

Aug 7, 2026

What Challenges Are Manufacturers Facing Under Annex 1?

What Challenges Are Manufacturers Facing Under Annex 1?

Manufacturers are facing significant challenges under Annex 1, which regulates sterile production processes. Compliance with these regulations is critical for maintaining product safety and quality. Identifying potential risks and implementing effective control measures are key aspects for manufacturers to address.

  • 01Annex 1 presents challenges in maintaining sterile production processes for manufacturers.
  • 02Compliance with Annex 1 regulations is crucial for product safety and quality.
  • 03Manufacturers must identify risks and implement effective control measures.

Aug 3, 2026

What Are the Biggest Challenges Pharmaceutical Manufacturers Are Facing Today?

What Are the Biggest Challenges Pharmaceutical Manufacturers Are Facing Today?

Pharmaceutical manufacturers face significant challenges such as ensuring quality control, navigating regulatory requirements, and managing supply chain disruptions. These issues are intensified by the need for innovation and rapid response to market demands. Companies must balance these factors to remain competitive in the industry.

  • 01Quality control is a major challenge for pharmaceutical manufacturers.
  • 02Regulatory compliance is essential but can be complex and time-consuming.
  • 03Supply chain disruptions require strategic management and contingency planning.

Aug 3, 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 15-minute demo

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