What is edge computing in IoT?

What is IoT at the edge?

IoT at the edge is a solution where computing is conducted close to IoT assets and equipment. IoT at the edge offers a data processing solution when IoT devices are located in places with limited connectivity, they produce too much data to send to the cloud cost-effectively, or need millisecond response times from analytics.

Figure 1: Overview of IoT at the edge.

Example of edge computing in IoT

Edge computing in IoT enables fast analytics, no matter where your asset is located.

For example, wind turbines located in harsh, remote environments are susceptible to damage, resulting in customers being deprived of reliable power. Turbine manufacturers need access to crucial sensor data being generated from these turbines to ensure they are functioning correctly.

In this case, when IoT data needs to be processed fast, it’s impractical to connect hundreds or thousands of these sensors to the cloud for data collecting and analyzing. Instead, by processing data on the edge, the performance of the wind turbines can be monitored in real time.

Nordex, one of the world’s largest wind turbine manufacturers, uses IoT remote monitoring at the edge to improve real-time operations at its wind farms. Using the Cumulocity platform, Nordex manages up to 5,000 real-time parameters to monitor, gather, and process real-time data.

Why is IoT at the edge important?

Processing all your IoT data in the cloud limits what you can do with IoT data, and factors like extreme weather or overburdened networks can make even cloud connectivity difficult to maintain.

IoT at the edge is reliable. It puts crucial insights into your hands quickly, allowing you to manage, monitor, analyze, and update equipment remotely and in real time.

For smart equipment manufacturers, this real-time data processing is a key enabler for advancing more sophisticated digital solutions that provide predictive maintenance and performance optimization. But regardless of where you are on the IoT maturity journey—whether you’re just starting to connect equipment or on your way to an EaaS business model—edge computing is a key enabler to deliver higher-value services.

Learn how IoT at the edge enables new business models

See why industry is so excited about the potential for IoT at the edge, as well as challenges and opportunities for smart equipment manufacturers in our guide, IoT at the edge: Enabling Equipment-as-a-Service business models.

The business benefits of IoT at the edge

Edge computing for IoT solves the challenges associated with processing IoT data in the cloud or a far-off data center. With edge computing, networking costs and spending on cloud computing are reduced. IoT data can be processed faster with better security, introducing you to better performance and latency.

Latency

Process data close to the source for faster results that trigger an immediate response with IoT edge analytics. When you get insights without delays, you’ll be able to react to something before it becomes catastrophic.

Security

By processing data close to the source, edge computing reduces the sharing of sensitive information and can help maintain high levels of data security.

Cut costs

It’s expensive to scale and store data in the cloud. By reducing the volume of data sent to the cloud and processing data locally, you’ll reduce spending on bandwidth and cloud computing.

Reliability

IoT edge computing allows you to effectively deploy IoT where there’s limited network connectivity and a need to process data from many devices.

Adaptability

From the weather to COVID-19 to the growth in autonomous machines, external forces constantly pressure you to change the way you manage data. IoT at the edge can accommodate change on the spot.

How to implement edge computing

IoT at the edge has never been easier.

With the Cumulocity platform, you can install and configure Cumulocity easily in your local area network and manage all edge installations centrally.

We bring everything you love in the cloud at the edge. You’ll have access to ready-to-use cockpit apps, code-free device management, self-service analytics, and machine learning to train your models as well as cost-efficient data storage.

Cumulocity even makes it easy to manage a hybrid configuration with both edge and cloud connectivity. We help you combine edge computing with cloud and bring your IoT architecture to the next level, enabling you to succeed in your IoT projects.