Edge Computing and the Keys to Unlocking IoT in Asia Pacific

Robert Linsdell, Managing Director Australia and New Zealand, Vertiv

Robert Linsdell, Managing Director Australia and New Zealand, Vertiv

As we continue to move toward the internet of things (IoT), smart cities, and an increasingly connected and digital world, organizations across Asia Pacific are looking at how to leverage technology to grow and remain globally competitive.

A recent report from IDC expects IoT spend in Asia Pacific to reach US $398.6 billion by 2023 as the region emerges as the primary driver of technology. The report notes the considerable support and mandates from governments across the region to promote IoT across major industries.

A number of countries such as China, South Korea, India, and Singapore have already demonstrated strong leadership and launched a number of important IoT trials to help establish this position.

Tomato farms in China are leveraging IoT and 5G to build intelligent glass greenhouses, leading to new varieties of tomatoes being developed. Meanwhile, Singapore’s Science Park is holding a 5G smart estate trial to test, for the first time, intelligent mobility solutions in a commercial space.

While these innovative initiatives and substantial investment into IoT should be welcomed, we need to consider the infrastructure our cities and countries need for IoT and other digital evolution to truly succeed.

Focusing on the Edge

The proliferation of IoT across Asia Pacific means we are creating more and more data than ever before from edge devices. Processing that data doesn’t happen easily or without putting the necessary infrastructure in place to handle it.

The edge means access at the point of convenience for the user; in other words, devices connected to the data centre ecosystem, which consume its resources. Traditionally, this has included routers, routing switches, and desktop computers. Now things are more complicated—laptops, smartphones, wearable technology, and plenty more are in the mix and that changes everything.

We recently conducted research into what was in store for data centres, the heartbeat of any IoT development, in the run up to 2025.

The proliferation of IoT across Asia Pacific means we are creating more and more data than ever before from edge devices. Processing that data doesn’t happen easily or without putting the necessary infrastructure in place to handle it

The key trend we identified in the DC 2025: Closer to the Edge Report was that more than half of respondents in APAC and across the globe believe their number of edge sites would increase by at least 100 percent, while a fifth expected a 400 percent or more increase.

This trend underscores the growing understanding that the edge is vital when it comes to IoT and other digital trends. Without the right injection of edge infrastructure, these incredible technological ambitions can’t be realized.

This is because existing cloud and large core data centres don’t have the network and bandwidth in place to process the volume of data we are creating at the edge. Even if we did, it’s not a cost-effective or pragmatic way to do it.

Edge and the Bottom Line

The edge can serve not only to drive IoT and digital transformation, but it can also have a positive impact on the bottom line. Traditionally, IT has been a cost center, but the increasing importance of digital services and automation of tedious ‘fire fighting’ tasks have meant that, if done the right way, it can drive profitable growth for businesses.

Our experience has taught us that businesses could save upwards of 50 percent on data center spend over five years.

This is down to a number of factors. Space is a key one.—edge data centers don’t require organizations to spend hundreds of thousands, or possibly millions, of dollars to design and construct a dedicated room.

Reducing power is another major factor. We estimate data centers consume almost five percent of all power used in the region. While there are ways to optimize efficiency in any data center, modern edge data centers carry a minimum carbon footprint and are difficult to beat, in terms of energy use.

Given one of the key societal problems, IoT hopes to address or improve our carbon footprint, edge can be a catalyst for driving efficiency and IoT at the same time.

Another key consideration for the edge is the vendor consolidation it can bring. Data centres usually contain a varied mix of different vendors’ solutions. Dealing with such an array of different companies can mean multiple quote requests, purchasing agreements and payment terms—all of which is complex and time-consuming.

Because of this, CFOs and procurement departments across APAC are favouring vendor consolidation. Moving to the edge simplifies that process and means there is only one company to go to if anything goes wrong.

Perhaps most importantly, the edge has the power to fulfil the long-awaited promise IT has made to make our working lives easier. No more fire fighting for the IT department, and easy-to-manage applications and digital services that help achieve business goals for the entire organization.

The edge and IoT are ripe for exponential growth in APAC. Organizations that recognize the simplicity, digital enablement and cost benefits attached to these developments and how they relate to each other will gain a competitive advantage and be in pole position to be an industry leader in the uncertain new internet-connected world.