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Sunlight 2023 Predictions: Five trends that will shape the edge computing market in 2023


Industry executives and experts share their predictions for 2023.  Read them in this 15th annual series exclusive.

Five trends that will shape the edge computing market in 2023

By Tom Flink, CEO, Sunlight

We have entered 2023 with the threat of a recession and significant layoffs across the tech industry. Meanwhile, IT organizations are expected to continue their pace of innovation with the same or fewer resources and show substantial ROI for their investments. Cloud migrations and centralization will continue to be a priority for many IT organizations. However, Edge computing will grow in importance as AI applications continue to enter the market and organizations see the benefits of moving computing closer to where data is generated, along with the opportunity to increase revenues through innovation and new customer experiences.

In 2023, five trends will shape the edge computing market:

  1. Consolidation - Cost initiatives and staff shortages will cause IT to eliminate complexity, improve manageability, upgrade infrastructure, automate processes, and rationalize years of incrementalism across systems and applications. Where previously new infrastructure and applications were added, as and when needed, enterprises now have to build flexible, non-brittle infrastructure that adapts to and scales with the changing needs of the business.

  2. Artificial Intelligence (AI) - AI in 2023 will manifest itself in new ways that make it more relevant to consumers. As it becomes more commonplace, it will open doors for broad adoption across the enterprise. This will drive the need for edge-specific computing platforms to support workloads locally, changing many things- from how we shop to how we create and interact with art, film, and music. Consumer experiences will be further impacted by developments in complementary technologies like Computer Vision, Virtual Reality, and Augmented Reality.

  3. Edge Hardware - Compute platforms at the edge will become as important as the management of the applications that run on these platforms. The cost of GPU-based edge servers will come down as supply chain issues ease and the use of GPUs for crypto mining declines. Servers and storage built for data centers will prove too costly and inefficient to justify deployment into edge environments.

  4. Increased Adoption of Edge Computing - Obscene amounts of data will be generated from all the IoT sensors and devices in locations like stores, restaurants, and factories. This will create the need for processing close to the data source for real-time insights, action, data sovereignty, and managing costs. In addition, applications and their underlying platforms will no longer be seen as separate silos. Edge platforms will manage disparate infrastructure and applications, including legacy and new workloads running in VMs and/or containers.

  5. Winners and losers - History shows that there are winners and losers in any economic downturn. Google was just two years old when the recession hit in 2000. AWS, Spotify, and Twitter were founded in 2006, shortly before the Great Recession. Whatsapp was founded in 2009, and Instagram in 2010. Startups have been known to scale in times of recession and transform our daily lives.

The winners and losers over the next 18-24 months will define the next era of the digital revolution - one powered by cost-saving initiatives, AI and edge computing.




Tom Flink is a veteran of the technology industry with decades of commercial experience in startups and established companies working in cloud, cybersecurity, and IT infrastructure. He is the CEO of who builds hyper-converged infrastructure and application management for edge deployments, at scale. Previously, Tom held executive roles at Citrix Systems, RES Software, Forcepoint, and Instart Logic where he was responsible for global GTM strategy, sales, and business development.

Published Thursday, January 12, 2023 9:51 AM by David Marshall
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