While the edge computing sector has been growing steadily for the past 10 years, it is expected to increase dramatically this year. There have been many technologies developed such as IoT but, until now, these initiatives have lacked the infrastructure to make the data they are collecting useful. In 2021 that will change - as we see the infrastructure, edge computing technology, and software platforms catch up with the demands of IoT and other smart technologies. This explosive growth has parallels with cloud computing growth, particularly over the past few years. Many companies have been investing in the future of edge computing in anticipation of this growth, and we expect to see a “cloud washing” effect with edge computing starting this year. In this article, I will discuss why this is occurring right now, some top trends in the industry, and what companies to watch as emerging leaders in edge computing.
With the influx of IoT devices, autonomous vehicles, and 5G, modern smart technologies are going to require the low-latency data processing that true edge computing offers. IoT applications and products require low-latency data processing at the source because it is impossible to backhaul all of that data to the cloud, do analytics, and get results back to the source in real-time or instantaneously. Edge computing accelerates that processing to offer real-time data collection and analysis at the source, rather than using cloud-based or remote servers. Information will be processed by public and private edge networks based on location, data type, and user affiliation, in addition to other rules. Data processing and analytics can have greater security too. Edge computing is not expected to completely replace cloud computing, but will enhance its use and revolutionize true distributed compute.
Over the past five years, there has been over 321% growth in patent investment in platform technologies for edge computing. While hardware for edge computing networks is important, the platform technologies are essential for realization of the true impact commercially. The total number of published applications on edge computing rose to 176 in 2020 from 74 in 2018. The number of published patents increased from 123 in 2020 from 55 in 2018. This is aggressive growth and accurately maps to the projected growth of the industry.
The leaders in issued patents and published applications are Akamai, Cisco, and Intel. Currently, the top 10 corporate owners of edge computing are Akamai Technologies, Cisco Systems, Intel, Verizon, Centurylink, Red Hat, Limelight Networks, IBM, Itron, and Microsoft. However, in a growth sector like edge computing platforms, there is still room for breakthroughs and change, and we look to smaller disrupters like EDJX to continue to innovate and deliver solutions that work today. That said, these leaders in patent investment will play a major role in what technologies are implemented most broadly, so they are expected to have a large impact on the growth of edge computing as a whole. But it remains a notable difference between cloud and edge computing that small companies still have opportunity play in the edge computing sector, while cloud is dominated by big corporations.
Akamai Technologies, Inc. is one of the leaders in the edge computing sector. The company is a content delivery network and cloud service provider headquartered in Cambridge, MA. Akamai provides companies with increased digital security through an intelligent edge platform. It is called “The Akamai Edge” and includes security, web and mobile performance, enterprise access, and video-delivery solutions. Akamai’s Intelligent Edge Platform reportedly consists of 240,000 servers positioned in 3,900 locations in more than 1,000 cities across 143 countries. The company has become the largest patent holder in edge computing and the undisputed leader in the blockchain category. In 2020, they worked on increasing their filings that teach blockchain aspects of edge computing technologies. One of Akamai's most recent publications teaches a method that allows for low-latency and high-performance when handling transaction receipts through blockchain. Akamai intends to hold its lead in the edge computing sector, specifically in the blockchain category.
Cisco Systems is another company to keep an eye out for in the edge computing space. Cisco is one of the pioneers in edge computing, having coined the term “fog computing” in 2012. They are currently focusing on “hyperconverged infrastructure” with the recent release of Cisco’s Hyperflex Anywhere servers. Cisco also just recently entered the blockchain category this past year. One of their most recent patent applications has the company pursing more blockchain-based applications, describing a method of using a distributed ledger to store node configuration information, specifically for resource-constrained devices in a network. To strengthen its positioning in the edge computing sector, Cisco acquired Acacia Communications last September. Acacia's coherent optics technology empowers web scale companies, service providers, and data center operators to meet the fast-growing consumer demands for data. Cisco is No. 2 in the number of published patents, right behind Akamai, and plans to continue its growth.
The third leader in published patents in the edge computing sector is Intel, a household name in tech. The company is historically known for processors and has used that position in order to move into edge computing. Intel has had 27 issues patents and applications published in 2019, eight of which were also filed in 2019. They became a force in edge computing platform technology in 2017, filing 16 patents in December 2017. Intel's recent patent applications cover a variety of applications, ranging from telemetry data management, to redistribution of resources, to V2X communication.Intel’s core business continues to focus on processors, such as Xeon, but they have always engaged in partnerships, such as one with Microsoft, to bring edge computing platforms to the public. The company has grown rapidly in the sector in the past year and will continue to solidify their presence in the industry. We expect to see Intel’s collaboration and partnerships continue, and also look for M&A activity in the near term.
As the edge computing sector grows, there will be intensifying competition between the current leaders shift in this sector. What is clear is that edge computing is sure to transform the future of data and industries in 2021.
