NTT’s Edge Advantage Report: Enterprises are accelerating edge adoption

Edge Computing is an increasingly attractive option for deploying applications and services for a variety of reasons, according to the 2023 NTT Edge Advantage Report.

The report found that a staggering 93% of respondents recognize the edge as a competitive advantage for their businesses. The majority of respondents, 88%, recognize the importance of 5G as a key enabler in driving technological advances.

In particular, organizations leveraging private 5G networks in combination with edge computing report the highest level of benefits.

NTTbenefit of 5G implementation

The main reasons behind investing in edge infrastructure are to enable automation and artificial intelligence, facilitate access to real-time data, improve operational efficiency, and accommodate the growing number of Internet of Things (IoT) devices. ). Industries at the forefront of using edge computing include manufacturing, healthcare, transportation and logistics, energy and utilities, and financial services.

The main reasons to implement edge solutions are:

  • Increase employee safety, experience and efficiency (79%)
  • Simplification/digitalization of business processes (76%)
  • Improve customer experience/anticipate customer needs (74%)
  • Increase use of data insights for decision making (72%)

As organizations see the potential at the edge, there are also concerns.

“What struck us was that while enterprises recognize the transformative power of edge technology, nearly 40% of those planning edge deployments are concerned that their current infrastructure won’t be able to support their deployments. future,” Parm Sandhu, vice president of 5G Enterprise Products and Services at NTT, told ITPro today.

Barriers to edge computing adoption remain

There are a number of things that need to change if more organizations are to benefit from the edge.

Management of computing, connectivity and IoT devices must become more unified and seamless, according to Sandhu. Otherwise, they’re a hindrance in terms of achieving the full potential of the edge. He added that the performance of secure and consistent edge applications is critically dependent on an organization’s network connectivity. Therefore, moving data will require a low latency environment and future edge deployments will be strongly correlated with a campus network overhaul.

A key trend that Sandhu says could help overcome some of the challenges is the rise of edge-as-a-service (EaaS), with eight out of 10 organizations indicating their reliance on third-party edge services is set to grow in the next two years. Specifically, 91% of organizations said they are partnering on edge skills through a managed services model to protect their organizations from infrastructure obsolescence.

Edge vs. Cloud Computing

Edge computing is not necessarily about replacing cloud computing, but rather about extending it.

“Edge computing places the processing power of the cloud at the edge of the corporate network, improving a wide range of use cases,” said Sandhu.

Such use cases can include vertical industries such as manufacturing, transportation, and healthcare organizations. Sandhu noted that where organizations see the true value of edge applications is in their ability to leverage low latency, predictability and high bandwidth for real-time data collection to be performed based on specific industry needs . For example, she noted that among manufacturing companies, operational efficiency was listed as the top driver of edge investment, with data security a close second.

“Through edge processing, the organization is not only able to reconcile the actual and expected shipping weight of packed goods, but also alert teams to errors and stolen goods through real-time data,” said Sandhu.

About the author

    Headshot of Sean Michael KernerSean Michael Kerner is an IT consultant, tech enthusiast, and tinkerer. He advises industry and media organizations on technology issues.

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