While public cloud has long been the poster child of digital transformation, edge computing is now emerging as a critical enabler of modern industrial operations. 

Once considered niche or too complex for smaller enterprises, edge infrastructure is gaining momentum across industries seeking performance, compliance, and cost efficiency.

According to industry analysts, edge computing investments are projected to grow significantly over the next decade, fuelled by the rise of AI, IoT, and stricter data regulations. 

Public cloud will continue to dominate overall IT spending, but the edge is becoming an essential piece of the digital infrastructure puzzle, and its relevance is even higher for industrial digital transformation.

Why now? Changing business needs.

Public cloud remains attractive for its simplicity and scalability. However, today's enterprises’ operational side demands more. 

Companies are deploying advanced digital strategies, embedding AI across operations - including production shop floors - and navigating complex data sovereignty requirements. Public cloud can satisfy some of these needs, but not all, and comes short against many of the operational technology (OT) requirements.

Local edge computing answers industries’ mission-critical demands like ultra-low latency, data sovereignty and higher degrees of system customization, not to mention their need for increased reliability and availability, which are essential for uninterrupted operations. Industrial digitalization is significantly different from traditional IT, therefore we must think about new infrastructure.

While on-prem edge computing may not be essential for every business, it is becoming a critical enabler in sectors undergoing Industry 4.0 transformation, such as manufacturing, energy, transportation, healthcare. These industries increasingly rely on real-time data, automation and AI at the edge to drive efficiency, safety, and responsiveness. 

As a result, the demand is not for generic infrastructure, but for specialized, fit-for-purpose  OT environments tailored to the unique operational needs of each enterprise.

AI at the edge: From vision to action

According to a recent report by Market Research Future, the Industrial AI market is projected to grow from $6.35 billion in 2025 to $191.76 billion by 2034, at a remarkable 46.2% compound annual growth rate (CAGR). AI-powered services require either real-time data processing or stringent data privacy guarantees.

Local (on-premises) edge computing allows inference and analytics to occur where the data is generated, whether it's a robot in a factory, a surveillance camera in harbor, or a worker wearable device in chemical plant. For mission- or safety-critical use cases where failure is not an option, relying on distant public cloud data center simply isn’t feasible due to the latency caused by the physical distance and the reliability internet connectivity.

Imagine a connected factory floor with on-premises edge infrastructure enabling automated, self-optimizing production lines, computer vision–based quality assurance, and automated pre-emptive actions to prevent worker safety incidents. 

The result? Improved profitability through enhanced production efficiency, reduced waste and CO₂ emissions, more secure operations, greater resilience, and safer work environments.

Data sovereignty: Local laws, local compute

Around the globe, governments are tightening regulations on data security and localization. India, for instance, mandates domestic storage of payment system data, while Germany enforces stringent telecom data laws, including the General Data Protection Regulation (GDPR) across the EU. 

Not only is this a regulatory requirement to adhere to, but there are also significant brand affinity benefits at a time where security and privacy contribute heavily to purchasing decision. Even within countries like Canada, regional mandates require that certain public sector data never leave provincial borders.

While it is not the default position for all countries, during a time of geopolitical uncertainty, it is not unforeseeable to see policy landscapes shift. 

On-premises edge computing offers a practical path to compliance. By deploying on-premises compute infrastructure, businesses can meet regional requirements without compromising on digital agility. 

Making your digital environment right for you 

A resilient local edge infrastructure significantly enhances the availability and reliability of enterprise digital shopfloor operations by providing powerful on-premises processing as close to the data source as possible—ensuring uninterrupted operations while avoiding external cloud dependency.

For businesses, this translates to improved production floor performance and increased uptime—both critical in sectors such as manufacturing, healthcare, and energy.

In today’s hyperconnected market, where customers expect seamless digital interactions around the clock, any delay or downtime can lead to lost revenue and reputational damage. 

Moreover, as AI, IoT, and real-time analytics continue to grow, on-premises OT edge infrastructure combined with industrial-grade connectivity such as private 4.9/LTE or 5G provides the necessary low-latency platform to support these emerging technologies. Investing in resilient infrastructure is no longer optional, it’s a strategic imperative for organisations seeking to maintain operational continuity, foster innovation, and stay ahead of competitors in an increasingly digital and dynamic global economy.

More to think about

 Once, infrastructure decisions were dominated by IT and boiled down to a simple choice between public and private infrastructure. Today, with IT/OT convergence, it’s all about fit-for-purpose architecture. On-premises edge computing doesn’t replace the cloud — it complements it in powerful ways.

The future is hybrid: public cloud for generic business operations, and on-premises edge for mission-critical operations where failure is not an option. That future is arriving faster than many expect.