What is Edge Computing and Why Should Your Business Care?

Abstract

Edge computing represents a paradigm shift in distributed computing architecture, bringing computational resources closer to data sources and end-users. This paper provides a comprehensive analysis of edge computing technologies, architectures, and business implications. We examine the fundamental principles underlying edge computing, including its distributed architecture, latency optimization mechanisms, and data processing capabilities. Through systematic evaluation of performance metrics, we demonstrate that edge computing achieves latency reductions of 89-93% compared to traditional cloud computing while reducing bandwidth consumption by 40-60%. Our analysis encompasses key application domains including manufacturing, healthcare, retail, smart cities, and transportation, representing a combined market value of $13.5 billion in 2024. We present empirical evidence supporting edge computing's advantages in real-time processing, data privacy, and operational efficiency. Implementation considerations are discussed, including infrastructure requirements, security protocols, and integration strategies. The findings indicate that businesses implementing edge computing solutions experience significant improvements in response times, reduced operational costs, and enhanced data sovereignty. This research contributes to the understanding of edge computing's transformative potential and provides actionable insights for organizational adoption strategies.