On-Device Edge Computing Will be Important for Cost Reasons

Generally speaking, edge computing facilities such as those envisioned by the multi-access edge computing model impose higher costs than do hyperscale data facilities, including capital investment efficiency and operating costs. That does not mean MEC is unfeasible, but that the business cases need to be worked out, as there are alternatives including on-board or on-device computing. 

Assume 20 percent to 40 percent of edge computing requirements might be suited for on-device processing, especially for simple, real-time tasks and applications with tight latency constraints.

Assume the remaining 60 percent to 80 percent of processing tasks might use either remote edge computing or cloud processing for more complex analysis, data aggregation, or situations where device limitations are significant.

Even in those cases, it is presently unclear how much latency improvement might be needed, and therefore when edge facilities are required. The answer matters, since, generally speaking, MEC or other edge computing facilities will not be as capital-efficient as hyperscale data centers. 

Challenge	Edge Computing	Hyperscale Data Centers
Infrastructure diversity: Diverse hardware needs based on specific edge locations (e.g., ruggedized for remote areas, low-power for battery-operated devices)	Standardized hardware for bulk purchase and deployment	Higher upfront costs
Geographical distribution: Managing equipment across geographically dispersed locations	Centralized infrastructure with economies of scale	Higher logistics and deployment costs
Smaller scale: Lower capacity per unit compared to large data centers	High capacity per unit due to bulk purchase and deployment	Lower cost per unit of compute

Add to that the operating cost profile, which likewise tends to be higher than for hyperscale sites. 

Challenge	Edge Computing	Hyperscale Data Centers
Remote monitoring and maintenance: Managing and maintaining equipment across diverse locations	Centralized monitoring and maintenance	Increased labor and service costs
Power and cooling: Diverse power and cooling requirements based on location (e.g., solar panels for remote areas)	Standardized power and cooling infrastructure	Increased energy and infrastructure costs
Security and compliance: Diversified security needs based on specific edge locations and regulations	Standardized security protocols across centralized infrastructure	Increased security and compliance costs

All of that means that MEC and other edge computing facilities are likely to be relatively costly investments for a data center services provider, simply because of lower scale at each facility, as well as the need for many such distributed facilities. 

That includes hardware costs; deployment costs; energy profiles; cooling requirements; monitoring and maintenance and well as security. 

Cost Factor	Edge Computing	Hyperscale Data Centers
Hardware: Higher upfront cost per unit, diverse needs	Lower upfront cost per unit, standardized needs	Edge > Hyperscale
Deployment: Higher logistics and deployment cost per unit	Lower deployment cost per unit due to scale	Edge > Hyperscale
Energy: Diverse power needs, potentially higher cost per unit	Standardized power infrastructure, lower cost per unit	Edge > Hyperscale (depending on location)
Cooling: Diverse cooling needs, potentially higher cost per unit	Standardized cooling infrastructure, lower cost per unit	Edge > Hyperscale (depending on location)
Monitoring & Maintenance: Higher labor and service cost per unit	Lower cost per unit due to centralized management	Edge > Hyperscale
Security & Compliance: Higher cost per unit due to diverse needs	Lower cost per unit due to standardized protocols	Edge > Hyperscale (depending on regulations)