Cut Latency, Boost Efficiency: What MSPs Need to Know About Edge Computing

Scaling smart: The edge data center revolution and circular IT

Not to be mistaken with U2’s “The Edge”, one of the most transformative trends in the industry lately is the rise of edge data centers. These compact, localized facilities are designed to bring data processing and storage closer to the users and devices they serve. As businesses adopt edge computing to improve latency, reduce bandwidth usage, and enhance reliability, the development of edge data centers presents new opportunities and challenges for IT infrastructure professionals.

In this article, we’ll explore what edge data centers are, why they’re gaining traction, and how they can impact your operations. Most importantly, we’ll discuss how integrating circular IT solutions can help you adapt to this trend effectively. Let’s dive right into it!

What are edge data centers?

Unlike traditional, centralized data centers, edge data centers are smaller facilities located closer to the source of data generation. They are designed to process, store, and deliver content and applications with minimal latency. Think of them as the middle ground between massive cloud data centers and the devices they serve.

For example, a retail company might use edge data centers to support in-store analytics, while a healthcare provider could use them to ensure real-time access to patient records. These applications require faster data processing and lower latency than what’s achievable with a distant centralized data center.

Why are edge data centers gaining momentum?

The global market for edge data centers is experiencing remarkable growth, projected to reach $39.8 billion by 2030, up from $13.0 billion in 2023, reflecting a robust CAGR of 17.3% during this period, according to a report by Research and Markets. But what’s driving this surge in popularity?

• Latency Reduction: Nowadays, applications like video streaming, gaming, and IoT devices demand near-instantaneous data processing: that’s where edge data centers play a pivotal role. By significantly reducing the distance that data must travel, they minimize latency to mere milliseconds, enhancing user experiences and operational efficiency.
• Bandwidth Optimization: With the explosion of data generated by IoT devices—expected to reach 75 billion connected devices by 2025—edge computing alleviates network strain by processing data locally. This means only the most critical information is sent to centralized data centers, optimizing bandwidth usage and reducing costs.
• Enhanced Resilience: Distributing processing power across multiple locations reduces reliance on a single facility, ensuring better service continuity during outages or network disruptions. This resilience is crucial as businesses increasingly depend on uninterrupted service for their operations.
• Support for AI and Real-Time Applications: Edge data centers are essential for applications requiring real-time data processing, such as autonomous vehicles, predictive maintenance, and augmented reality. The ability to process data at the edge enables quicker decision-making, which is vital for these technologies.

What does it mean for MSPs?

• New Service Opportunities: As clients increasingly adopt edge computing, Managed Service Providers (MSPs) can tap into a range of service offerings, from setting up edge data centers to providing ongoing management and monitoring. These facilities often require specialized expertise, allowing MSPs to differentiate themselves in a competitive market.
• Increased Infrastructure Demands: Edge deployments typically consist of numerous smaller facilities rather than a single large data center. This shift creates a demand for scalable, modular hardware that can be deployed quickly and cost-effectively. As we will see in the next part, circular IT solutions can play a crucial role here, offering reliable, refurbished servers and components that help manage costs while supporting rapid deployment.

• Focus on Sustainability: With sustainability becoming a priority across industries, MSPs have the opportunity to leverage edge data centers to build more eco-friendly IT infrastructures. Implementing circular IT solutions not only helps reduce e-waste and carbon emissions, but also aligns with clients’ Environmental, Social, and Governance (ESG) goals.
• Adapting to Hybrid Environments: Edge data centers complement centralized facilities rather than replace them. MSPs must adeptly navigate hybrid environments that integrate edge, cloud, and on-premise solutions. This requires flexible, fit-for-purpose infrastructure strategies that can adapt to varying client needs and technological advancements.

Circular IT: Gaining a competitive edge

Circular IT solutions are exceptionally well-suited to address the unique challenges of edge data centers, offering both technical and economic advantages:

• Cost Efficiency: Establishing multiple edge data centers can strain budgets, making cost-effective solutions essential. Circular IT hardware, including refurbished servers and networking equipment, provides a viable alternative to new components, delivering high performance without the hefty price tag. From our experience, using circular equipment can reduce capital expenditures by up to 80%, allowing MSPs to allocate resources more effectively.
• Scalability: Edge deployments are inherently incremental, often requiring the addition of new facilities or expansions as demand evolves. Circular IT offers modular and scalable fit-for-purpose solutions, ensuring that organizations only pay for what they need at any given time. This flexibility is crucial in a rapidly changing technological landscape.
• Reliability and Performance: There is a common misconception that circular hardware lacks reliability; however, circular IT components undergo rigorous testing and refurbishment processes to meet stringent quality standards. This ensures dependable performance, which is critical for edge data centers that handle real-time workloads, where downtime can lead to significant operational disruptions.
• Environmental Impact: Edge data centers are designed to consume less power and water compared to traditional facilities. When paired with circular IT practices, this sustainability effort is amplified. By extending the lifecycle of IT hardware, businesses can significantly reduce e-waste and lower their carbon footprint—contributing positively to environmental sustainability goals.

Conclusion

As edge data centers are here to stay, MSPs find themselves uniquely positioned to capitalize on this transformative shift. These localized facilities offer exciting opportunities for faster data processing, cost efficiency, and sustainability, but they also bring challenges requiring innovative strategies. By embracing edge computing, MSPs can position themselves as pioneers, providing their clients with cutting-edge solutions tailored to modern demands.

The rise of edge data centers signals a paradigm shift in how businesses approach IT infrastructure. For MSPs, the key to success lies in understanding the nuances of this transformation and adopting strategies that balance performance, scalability, and sustainability. With circular IT solutions at the forefront of this revolution, MSPs have the tools to lead the charge, offering their clients a competitive edge in an increasingly decentralized world.

If you’re ready to explore how circular IT solutions can enhance your edge computing strategy, feel free to reach out today. Together, let’s shape a sustainable, scalable, and successful future for your business!

Born and raised in southern Germany, Thomas Amberg is a European at heart. He combines an international mindset with his practical and dynamic approach to life. Studying and living abroad in the Netherlands and Denmark taught him to be adaptable and culturally aware. Now responsible for the development of DACH markets, he is also a passionate handball player.