Providing market intelligence for more than 35 years

After more than twenty years of pushing computing from local servers into the cloud, many industries now strategize more carefully about the most appropriate options among cloud computing, edge computing, and hybrid edge-cloud configurations. Cost, latency, privacy, and reliance on connectivity are all factors informing these decisions. Hybrid edge-cloud architectures enable the best of both worlds for many applications, such as connected devices. They can optimize data processing, management, and storage at the local or on-premise level, while also connecting to the cloud for tasks such as managing product identification and over-the-air updates.

Edge and cloud processing capabilities provide different benefits depending on the use case. While edge computing provides a greater level of local data security and privacy, cloud computing provides an increased level of network security by leveraging advanced data analytics and a continually updated library of cybersecurity resources. Ultimately, it is up to the product developers to determine what features are most important when evaluating edge vs. cloud computing use cases. 

Key Drivers of Edge Computing in the Connected Home

Edge computing delivers lower latency required for use cases such as 1) video and audio analytics for home security purposes, 2) artificial intelligence and machine learning applications deployed for real-time automation and personalized experiences, or 3) highly time-sensitive uses such as safety features of self-driving cars or connected health applications critical to life safety. For security use cases, edge computing reduces false alerts faster and enables intelligent and personalized alerts by leveraging video and audio analytics capabilities embedded in the device hardware.

Some trends currently enabling edge processing in the connected home include those below:

  • Lower costs of required processing chips, memory, and hardware
  • Improved miniaturization and power efficiency of high-performance chips
  • Improved power efficiency, range, and security of wireless networking protocols
  • Cloud services are making IoT software agents available for embedding in local IoT gateways or edge servers

This is an excerpt from Parks Associates extensive library of research, curated over almost 4 decades. For more information on Parks Associates research, visit

Thank you for reading our research. We love all comments. Please share with anyone you think might be interested in this research and supporting a woman-owned, family-run, second-generation business. 

If you enjoyed this article, be sure to subscribe to our newsletter on LinkedIn: 

More from Elizabeth Parks

May 16, 2023

Telly: Entering the Market with an “Ads-Pay-for-Hardware” Approach

In today's fast-paced world of streaming and digital content,: providing affordable and engaging con...

Read More

February 15, 2023

Smart Energy Summit Insights from the Industry

Parks Associates hosted its 14th annual Smart Energy Summit this week in Austin, TX bringing the bes...

Read More

March 13, 2023

OTT Video Market Tracker: Insights into the Evolving US Streaming Landscape

Are you interested in learning more about the rapidly evolving OTT video market in the United States...

Read More