What is Edge Computing? (Components, Examples, Benefits, and Limits)

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Edge Computing

We all know that computing power is moving away from centralized data centers to the network’s edge.
Edge computing is a computing type where data processing and content delivery are moved closer to the end user. That can be done using local servers, fog nodes, or edge nodes.

This article will explore edge computing, its working, components,  benefits, limits, and edge computing vs. cloud computing.

What is Edge Computing?

It is a term used to describe a type of computing occurring near the edge of the network, unlike a traditional data center.

The edge of the network can be defined in several ways, but typically it refers to the extremities of the network, places where data is generated and consumed.

Rather than sending all data to a central data center, the data is processed closer to where it is generated. This can improve performance, reduce latency, and save bandwidth and energy costs.

How does it work?

It has been around for decades. It was first introduced in remote offices and branch locations, where it made sense to place resources at the desired location rather than depend on a single central point of access or distribution systems that were less reliable due to their distance from consumers.

It works by placing processing power and storage near the points where data is generated and consumed. Many ways can do it, but one of the most common is to use small, low-power devices called edge nodes.

Edge nodes are connected to the network and each other, allowing them to exchange data and share resources. This will enable them to act as intermediaries between the devices that generate data and those that consume it.

Edge nodes can be used to perform a variety of tasks, including data processing, content caching, and load balancing. They can also manage and monitor the devices that generate data.

Migrating away from traditional data centers facilitates another benefit: reducing network traffic between devices within an organization’s infrastructure.

Especially those which would only need local storage capability, like printers connected wirelessly via Wi-Fi networks.

Edge Computing Architecture

Edge Computing Architecture


Now we are moving towards a more connected world; edge computing is becoming increasingly important.

With the rise of the internet of things (IoT), there is an ever-growing demand for data processing and storage closer to the edge of the network, where devices are located.

That enables faster response times and reduced latency, which is essential for applications that require real-time interaction, such as autonomous vehicles or industrial IoT deployments.

It can also help to address security and privacy concerns. For example, keeping data closer to the source is less likely to be compromised in transit or stolen by hackers.

And reducing the amount of data that needs to be sent to central cloud servers can help to protect users’ personal information.

Components of Edge Computing

Components of Edge Computing

Edge devices

Edge devices are crucial elements, the physical or virtual machines that process and act on data near the source of its creation.

Edge devices include smartphones, sensors, laptops, industrial robots, and autonomous vehicles. They act as a bridge between the cloud and the physical world, processing data and sending it back to the cloud for further analysis or action.

Network edge

The network edge is another important part. This is the point where data enters or leaves the network, and it’s where edge devices connect to the internet or other networks.

The network edge is responsible for routing data to and from edge devices and ensuring that it’s processed quickly and securely.

On-premise infrastructure

On-premise infrastructure is an essential component. This hardware and software power edge devices and keeps them connected to the network. On-premise infrastructure can include servers, routers, containers, hubs, bridges, storage arrays, and gateways.

Edge computing vs Cloud computing

Edge computingCloud computing
More localizedMore centralized
Better equipped to handle real-time dataBetter for bulk data storage
Requires less bandwidth and power Requires more bandwidth and power
Can process and act on data as it is generatedProcessing data as it is generated is not possible
Short-distance data transmissionLong-distance data transmission

Some Real-world Examples


A retailer may use edge computing to identify and respond to inventory shortages and pricing changes quickly.

For example, if a retailer notices an increase in demand for a product, they can use edge computing to place an order for more of that product from their supplier.


Manufacturing companies can use edge computing to improve production efficiency and quality. For example, a manufacturer might use it to monitor the performance of machines on the factory floor in real time.

This would allow them to identify and fix problems before they cause a stoppage in production.


Healthcare providers can use edge computing to reduce the amount of data that needs to be sent to centralized data centers.

For example, a healthcare provider might use this to store patient data on local devices instead of sending data to the main data center. This would allow patients to access their data easily.


Transportation companies can use it to improve the safety and efficiency of their operations. For example, a transportation company might use edge computing to track the location of vehicles and passengers in real-time.

This will allow them to respond quickly if there is an emergency.


Increased performance and reduced latency

It enables devices to process data and execute tasks near the information source, reducing the need for transmission over a network. That results in increased performance and faster response times.

Reduced infrastructure costs

Allows businesses to deploy computer resources at the network’s edge instead of investing in expensive infrastructure to handle traffic at centralized data centers.

Enhanced security

Processing data closer to the source can help reduce the risk of security breaches and protect sensitive information.

Improved efficiency

It can help optimize workflows by reducing the time spent transmitting data over a network.

Greater flexibility

Allows businesses to quickly adapt to changing needs and demands by deploying resources where they are needed most.

Enhanced scalability

This makes it easy for businesses to scale their operations without investing in additional infrastructure or personnel.

More efficient use of bandwidth

Businesses can better manage their bandwidth usage, ensuring that critical tasks receive priority treatment. At the same time, non-essential activities are delayed or eliminated.

Faster decision-making

By processing data at the network’s edge, businesses can make decisions more quickly and efficiently without waiting for data to be transmitted from a central location.


  • Limited scalability: You can connect only a limited number of devices at any time.
  • Limited capability: It is not as powerful as cloud computing in processing power and storage.
  • Lack of standardization: There is no one-size-fits-all definition for edge computing, which makes it challenging to develop and deploy standardized applications and services.
  • Fragmented infrastructure: Its deployments are often fragmented, which hampers interoperability and slows down innovation.
  • Varying performance levels: The performance of edge computing systems depends heavily on the network topology and the proximity of devices to the edge node.
  • Security and privacy concerns: Edge devices are often exposed to more security risks than centralized cloud systems, as they are more challenging to secure and manage effectively.

Despite these limitations, this is a promising technology that has the potential to revolutionize the way we interact with data and devices.

As the world becomes increasingly connected, providing low-latency, high-performance access to data and services will become more important.


Edge computing is a new path of handling data that is becoming increasingly popular. Moving data processing and storage closer to the network can provide many benefits.

These benefits include lower latency, higher security, and improved scalability. However, while it has many advantages, there are also some limitations.

These limitations include the need for specialized hardware and the lack of standardization.

Overall, this promising new technology can revolutionize how data is handled.


Vehicular edge computing