Edge Computing Boom Likely to Propel SaaS Market

Credit: Fabian_Kaufmann

Edge computing has the potential to boost the performance of other technologies and enhance entire industries with the remarkable connection speeds, network efficiency, and security it provides. And so, it comes as no surprise that the IT architecture’s global market is marked for growth. A report by Grand View Research shows that the value of the edge computing market is slated to increase from $11.24 billion in 2022 to $155.9 billion by 2030 at a staggering annual growth rate of 38.9%.

Edge computing’s massive growth is attributed to its ability to enhance the offerings of other technologies, especially popular ones like artificial intelligence (AI) and the Internet of Things (IoT). In the case of AI, the infrastructure model reduces machine labor by decentralizing data processing, which vastly speeds up the engine’s ability to detect trends and make recommendations. It also minimizes latency, allowing AI to calculate outcomes and make decisions with limited delays. Additionally, it grants users local data storage and improved security.

Edge computing proves to be even more instrumental with the use of IoT. On top of the advantages it affords AI, the technology nixes proximity issues that plague IoT devices since “edges” are found in multiple locations. Computing takes place near IoT users instead of being siloed in a single centralized server. This results in faster and more reliable services, with the infrastructure model even making certain sophisticated features possible.

In a nutshell, edge computing empowers applications to perform better. So much so, that analysts view it as the key to powering massive environments such as cloud networks and the metaverse. With this, one among many markets stands as a primary beneficiary of its capabilities: SaaS.

Enhancing SaaS Performance

SaaS applications offer web-based solutions across various industries to improve workflows and simplify experiences. Running on the cloud delivery model, these tools typically leverage technology like AI and machine learning to perform a vast range of calculations. Edge computing enters the fray as a data center enhancement, alternative, or supplement handled by third parties, as it addresses many of the concerns surrounding cloud-hosted domains.

Similar to how it enhances AI, edge computing decreases latency and data backhaul, enabling SaaS features to run faster and more efficiently regardless of a user’s location. It can also address bandwidth issues and clear up traffic flows. In addition, its decentralized nature will make it harder for hackers to penetrate SaaS systems, boosting the latter’s security features. Moreover, it improves scalability as it eases processing labor and potentially expands SaaS capabilities with the introduction of edge-based features and services. This works even better with sophisticated apps that leverage AI and power IoT devices.

The power and flexibility of edge computing combined with the usefulness of SaaS apps have led to businesses realizing the value of both types of technology. Recent SaaS software trends suggest that investments in edge computing this year would probably reach $176 billion, representing a 14.8% year-over-year growth. Meanwhile, SaaS apps currently account for 70% of business software use. This figure would likely climb significantly when SaaS apps are leveraged in conjunction with edge computing.

The future of the SaaS industry looks even more buoyant with the emergence of edge computing. It promises enhanced experiences that drive results for both producers and consumers.