Edge computing, cloud computing, edge processing or cloud computing are increasingly common terms that appear during discussions about modern IT environments and IT infrastructure updates. In today’s hybrid world, businesses are increasingly using On-Premise solutions (on their own), replacing them with edge computing or cloud computing.

Differences between edge computing and cloud computing

Cloud computing and edge computing are modern approaches to managing IT infrastructure, which allow for increased flexibility, easier resource allocation, and improved resource efficiency, all while reducing the time and resources needed for management and ensuring business continuity. However, edge computing and cloud computing differ in key assumptions, which we will explain in the text below.

What is edge computing?

Edge computing, also known as edge computing, is an approach to data processing that involves moving computing power and data analysis closer to where the data is generated. Instead of sending all data to a central cloud or data center, processing takes place locally, e.g. on end devices (so-called edge devices) or servers located close to the data source.

How does edge computing work?

Edge computing relies heavily on efficient computing units in end devices. As the performance of personal computers, smartphones, and tablets increases, they can perform more and more advanced operations, which is evident in the current development of artificial intelligence using NPU (neural processing units) to process AI queries without communicating with external infrastructure.

What are the benefits of edge computing?

Edge computing enables data to be processed faster and with lower latency, which is crucial in applications that require rapid response, such as autonomous cars, smart cities, IoT (Internet of Things), or industrial systems.

The benefits of edge computing include:

• Lower latency: Data is processed close to its source, allowing for immediate response.
• Reduced network load: Less data is sent to central servers, reducing bandwidth usage.
• Improved data security: Data can be processed locally, reducing its exposure to potential threats when transferred to the cloud.

In what cases is edge computing used?

Edge computing is used in many situations where low latency, fast data analysis, network bandwidth constraints or increased security are key. The advantages of edge computing are used in:

• Industry 4.0
• IoT
• Autonomous solutions (including smart cars)
• Mobile networks and Wi-Fi
• Unmanned aerial vehicles
• Modern end devices – smartphones, computers or tablets.

Edge computing is particularly useful where data processing must be fast, secure, and independent of central systems, especially in environments with limited access to high-speed Internet or where there is a large amount of data. This solution is characterized by a high level of cybersecurity, because most of the data does not have to leave the end device’s storage.

What is cloud computing?

Cloud computing, also known as cloud computing and cloud computing, is a model for delivering computing services over the Internet, including resources such as servers, data storage, databases, networks, software, data analysis, and artificial intelligence. Instead of storing data or running applications on local computers or their own servers, users use resources provided by external cloud providers.

How does cloud computing work?

Cloud computing works by using a large network of servers located in data centers around the world, which are managed by cloud providers. The key idea is that users can access computing resources (such as computing power, memory, applications, and services) via the internet, without having to own infrastructure.

There are currently three types of cloud computing on the market:

• Public cloud: Services provided by external providers such as Amazon Web Services (AWS), Microsoft Azure, or Google Cloud Platform. Resources are shared by multiple users, which allows for cost optimization.
• Private cloud: Own cloud infrastructure, dedicated to a specific organization, which allows for greater control over data and security. It can be located on-premises or managed by an external provider.
• Hybrid cloud: A combination of public and private clouds, which allows for the flexible transfer of workloads between them depending on needs.

Cloud services can also be divided according to the service model that defines how resources are delivered:

• IaaS (Infrastructure as a Service): Users have access to IT infrastructure, such as servers, networks, and storage, which they can configure according to their own needs (e.g. Amazon EC2, Microsoft Azure Virtual Machines).
• PaaS (Platform as a Service): A platform for creating, testing, and deploying applications without managing hardware infrastructure (e.g. Google App Engine, Heroku).
• SaaS (Software as a Service): Ready-made applications available via the Internet that the user can use without having to install them (e.g. Microsoft 365, Salesforce).

What are the benefits of cloud computing?

The benefits of cloud computing include:

• Scalability: Easily increase or decrease resources.
• Flexibility: Ability to use different services depending on your needs.
• Availability: Resources available 24/7 from anywhere with internet access.
• Cost savings: Pay for resources actually used, without having to buy expensive equipment.

What are the disadvantages of using cloud computing?

Although the use of cloud computing is an extremely popular approach, implementing cloud computing has a number of disadvantages and limitations, which are mainly related to the lack of full control over the IT infrastructure and the place of data processing.

The most significant disadvantages of implementing and using cloud computing include:

• Dependence on access to an internet connection
• Concerns related to data security and appropriate privacy protection
• Limited control over the infrastructure
• High costs in the long term due to the subscription model
• Dependence on a given supplier (vendro lock)
• Potential interruptions in operation independent of your own IT infrastructure

Main differences between edge and cloud computing

The goal of edge computing and cloud computing is to improve the IT infrastructure in an organization, and in particular the optimal use of computing power. Both of these approaches, due to key differences in their scheme of operation, offer completely different functionalities and are used in different scenarios.

Data Processing Localization – differences between edge and cloud computing

The location of data processing is the biggest difference between cloud computing and edge computing. The Internet cloud, as the name suggests, stores data on the Internet. Edge processing transfers it as close to the endpoint as possible – the device used by the user.

In edge computing, data processing takes place close to the place where it is created – on edge devices or in their immediate vicinity (e.g. on routers, IoT gateways, base stations).

In cloud computing, data is sent to remote data centers that may be located hundreds or thousands of kilometers from where it was collected.

Data Transfer Delays – edge vs. cloud computing

In edge computing, data is processed close to where it is generated (e.g. on edge devices or local servers). Thanks to this, the data transfer time to the central data center is minimized or completely eliminated.

The cloud approach requires data to be transferred to central data centers, often located in remote locations. Transferring data over long distances, especially over the Internet, can generate higher delays.

Edge computing is the best solution for applications requiring immediate response and very low latency. Cloud computing works well in cases where processing speed is not a key factor, but more computing power and data storage capacity are needed. In many cases, a hybrid approach is used that combines the advantages of both solutions – processing data in edge computing for fast response and sending it to the cloud for further analysis and storage.

Data Security – edge computing vs. cloud computing

Edge computing allows for greater control over data and faster local responses, but requires greater attention to securing devices and networks. Cloud computing offers advanced security and centralization, but is associated with trust in cloud providers and the possibility of becoming a target for cyberattacks. In practice, hybrid solutions are often used that combine the advantages of both approaches – edge computing for preprocessing and local protection, and cloud computing for long-term storage and advanced analysis.

Costs and scalability – which is better: edge or cloud computing?

TCO is one of the key decision-making factors in business.

Edge computing is noticeably better in terms of reducing data transfer costs and speed of response, but generates much higher initial costs and more limited scalability due to the physical infrastructure.

Cloud computing is more scalable and flexible, making it ideal for companies with variable resource requirements. Costs may be lower initially, but long-term fees can add up, especially with intensive use (pay per use subscription model).

When to choose edge computing and when to choose cloud computing?

The choice between edge computing and cloud computing depends on several factors, such as the need for data processing speed, scalability, cost, privacy, and data storage requirements.

Edge computing is a good choice for real-time applications, in solutions requiring a high level of local security and privacy protection, and in services where bandwidth and data transfer costs need to be limited.

Cloud computing is better suited for business applications, SaaS, PaaS, IaaS, e-commerce, storing large amounts of data, and data analytics.

To sum up:

• Edge computing is the best solution for cases that require low latency, real-time data processing, local data storage, privacy control, and reduced data transmission costs.
• Cloud computing is ideal for situations that require high scalability, advanced data analysis, global access to applications, and central data storage.

It is worth remembering that both solutions have their advantages and disadvantages. Many organizations decide to use edge computing and cloud computing in an agile hybrid model to leverage the advantages of both technologies while eliminating their biggest disadvantages.