Edge Computing and Cloud Computing: Understanding the Differences

Edge Computing vs. Cloud Computing

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In the IT world, edge computing and cloud computing have become widely significant. Edge computing and cloud computing differ in ways of accessing and storing data and providing related services for data computing. Edge and cloud computing technology has been around since the 1990s, but it became widely available only after the rise of digitization. In this article, we will understand both these technologies and their differences.

Edge Computing

Edge computing is a distributed computing architecture system in which computing and data storage occur closer to the source of data, i.e., near the edge of the network, thus decreasing data processing time and latency. In this technology, data processing takes place adjacent to the network devices that generate the data, as opposed to a central location, such as a data center. This technology is thus preferred when low latency and limited bandwidth are required for sending large amounts of data to a processing center. Edge computing supports real-time decision-making by computing data closer to the edge (device) and accelerates data transfer to and from the cloud.


IoT devices, AR/VR systems, and industrial automation systems require low latency benefits and thus prefer adopting edge computing. Applications that produce a lot of data, such as those used in industry, video and image analysis, and intelligence, also use this technology for data transfer to the cloud after pre-processing at edge devices.

The primary goal of edge computing is to reduce the complexity of the data management process by shifting some computing resources closer to the data source point.

Edge infrastructure typically involves edge devices and edge data centers for this purpose.

Edge devices: An edge device is typically hardware that manages the boundary between two networks, working as a gatekeeper for the flow of data between service providers and users. A Wi-Fi router is an example of an edge device.

Edge data centers: These are small data centers that are placed near the edge devices of a network. They are generally used to deliver cloud computing infrastructure to edge devices.

Cloud Computing

Cloud computing, on the other hand, works on the principle of centralized pooled computing architecture. It provides cutting-edge computing technology over the Internet on demand. It involves the use of hosted servers, data storage centers, networking, and software over the Internet to facilitate data storage and access across the network. Cloud computing services are hosted on remote data centers maintained by a third-party vendor or an organization to provide cloud computing services to consumers.

Cloud computing enables virtualization of IT infrastructures such as operating systems, servers, and networks. This virtual technology helps to pool and deliver computing power despite the limitations posed by physical hardware. For example, a single hardware server can be split and used as multiple distinct virtual servers by different users, thus optimizing productivity. These advantages of cloud computing help organizations scale operations.


Today, organizations and industries use cloud computing everywhere, which includes hosting applications on the internet, sending emails, creating virtual desktops, data backup, software development and testing, implementing client-facing web applications, and providing big data analytics services, among others. For example, financial institutions rely on large-scale cloud solutions to detect and prevent fraud in real time, while healthcare institutions are using cloud solutions to provide treatments and manage healthcare administration. Cloud infrastructure has provided end users with a way to achieve quicker service delivery and enhanced efficiency compared to traditional IT infrastructure.


As discussed earlier, cloud and edge technology are two different technologies and have their differences in various aspects, which makes them suitable for different scenarios. Below is a summary table of the differences between the two technologies:

Aspect Cloud Computing Edge Computing
Proximity to Data Source Relies on centralized data centers for computation Have smaller data centers and computational capabilities near the data source point
Speed & Agility Cloud computing is agile, robust, and offers wide accessibility but may introduce latency Has lower latency compared to cloud-based systems but is more dynamic than the cloud-based system
Scalability Scalability is a key benefit that cloud-based system provides. Infrastructure available with third-party cloud services simplify scaling processes for clients Scalability is not that easy with edge computing technology, as different edge devices require different infrastructures. Latency may occur during scaling up
Productivity & Performance Performance is better, but processing may have slightly higher latency due to data transmission to and from data centers Processes data faster using on-premise analytical tools and AI, but the performance is dependent on-premise available hardware and software
Reliability Cloud technology is more reliable and robust and is easier to administer Edge computing is less reliable as a failure of a few nodes and edge devices may impact service accessibility
Security Inherently more secure and robust, with end-to-end encryption protocols Require higher mechanisms of encryption as data transfer takes place between devices before transferring to the cloud
Use cases Cloud computing is used everywhere, where on-demand service requirements over the internet are a must. Use cases range from web applications data storage to much more where latency and internet connectivity constraints are not there Implemented in systems that require low latency and can communicate with local devices without always using the internet. Applications range from IOT systems, autonomous vehicles, automated industrial manufacturing, AR/VR systems
Cost It can be implemented at a lower cost Require higher cost of implementation and maintenance


Edge computing and cloud computing have their uses in different scenarios and cannot be substituted by another. Despite the differences, these computing technologies are complemented together in systems today to create a more efficient IT infrastructure for the future. This modern IT system will help in solving more complex problems of modern mankind.

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