In our previous blog post, we highlighted the different types of edge centers. But, one of the more important points to the discussion is understanding what edge data centers are and what pain point they are addressing in the broader market.

So, let’s take a look as to why everyone is talking about them and why there will be a growing need in the years to come.

Edge data centers are named so because they live on the periphery or “edge” of a larger network away from the traditional hubs or interconnects we are accustomed to. The objective of having these data centers at the “edge” is to -

1. Reduce the latency issues that stem from the transmission distance associated with communicating to servers in distant data centers 
2. Move the processing of time-sensitive data as close to the end user as possible

Making this move to the edge and minimizing the amount of data that needs to be transmitted back and forth between centralized data centers - or hosted cloud instances - is one of the best ways to address the problem of latency.

Why is there so much focus and talk about latency now? A big reason is just the sheer number of devices and end users that are either consuming or transmitting data.

The Internet of Things (IoT) is expected to grow in the number of connected devices by 9% in 2021 and more than double by 2025.

This growth of IoT devices isn’t limited to personal electronics like cell phones and laptops – industrial IoT for manufacturing and agriculture (drones, AI-drive automation, etc.) are also rapidly on the rise. The growth of IoT will only further accelerate with the roll out of 5G cellular services giving more users access to high bandwidth internet connections wherever they go.

With all of these now-connected users, online services, such as streaming, mobile gaming, and shopping are all vying for this customer base. One thing they are looking at to make sure they capture and use to retain these customers is in the experience they provide.

Even brick-and-mortar retailers will benefit from reducing latency as they look to enhance their customers experience by implementing new ideas. Innovations, such as checkout-less shopping or augmented reality-based display systems will generate a massive amount of data that needs to be processed quickly to give the customer a seamless experience.

Solving the latency issue is also going to be a vital piece to many emerging technologies or industries where real time data processing can have a direct effect on the safety of individuals.