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THE EDGE IN ASIA A Report on Edge Computing and Micro Data Centers in the region
THE EDGE IN ASIAA Report on Edge Computing and Micro Data Centers in the region
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THE EDGE IN ASIA PACIFIC
Table of Contents
Executive Summary ............................................................................................................................................................................. 3
Methodology ............................................................................................................................................................................................... 4
Key Findings .................................................................................................................................................................................................. 5
1. Edge Understanding and Adoption ................................................................................................................. 5
2. Infrastructure at the Edge ..................................................................................................................................... 6
3. Factors in procuring micro data centers ................................................................................................... 7
4. Challenges in micro data center deployment ......................................................................................... 7
5. Future outlook on edge deployment .............................................................................................................. 8
Conclusion ......................................................................................................................................................................................................... 8
© 2017 Vertiv Co. All rights reserved.
3
Executive Summary
Edge computing remains to be a high-interest topic in IT discussions, given its potential to unlock new
business opportunities – from delivering digital services to discovering innovative disruptions to maintain
their competitive advantage. It has been embraced as a critical piece to digital transformation, and a number
of industries have begun integrating this technology in their operations, such as banking and financial
services, telecommunications, and manufacturing. Meanwhile, the changing consumer dynamic is adding
pressure to businesses to ensure a seamless customer experience; thus, it is important that they set-up the
necessary enabling infrastructure to keep them attuned to client requirements.
Vertiv conducted a regional study in order to understand how customers and partners understand “the
edge of the network”. The survey revealed that the edge computing is still in the nascent stage of adoption
in Asia Pacific, where micro data centers are primarily used as a preventive measure against data loss
despite the drive to adopt to emerging technological trends.
Two-fifths of all respondents showed a comprehensive understanding of the concept of edge computing,
but only one-third have set up the necessary infrastructure to implement the technology. These companies
usually have one to two micro data centers in place, generally located in the main headquarters or regional
off ices. Generally, these centers are equipped with one to five racks carrying data servers. In terms of
support infrastructure, most micro data centers surveyed have the basic equipment: UPS, as well as cooling
and monitoring equipment.
Respondents prioritize a vendor’s service capabilities and price points before procuring necessary
infrastructure, given that financial limitations remain a top constraint for companies to implement new
technologies. Other issues include compatibility with incumbent systems, as well as concerns on security
and compliance.
Senior management remains to be priority audience, as they serve as the main decision maker in technology
strategy. Respondents also believe that edge computing projects will pick up after three years, once there is
more clarity on the benefits of this technology to businesses.
© 2017 Vertiv Co. All rights reserved.
4
Methodology
Vertiv conducted an online survey in January 2017 of 8,500 respondents consisting of C-level executives,
IT and data center professionals, and facility managers in Southeast Asia, North Asia and Australia and New
Zealand. The purpose of the survey was to determine general understanding on edge computing, including
adoption, infrastructure needs, and future outlook. Close to 200 responses were received across diff erent
industries (see below).
Figure 1: Organizational Responsibility of Survey Respondents
28%
28%22%
22%
Figure 2: Industry Profile of Survey Respondents
21% CONSTRUCTION
10%BFSI
3%EDUCATION
1%ENERGY
5%GOVERNMENT
6%HEALTHCARE
5%HOSPITALITY
5%INFORMATIONTECHNOLOGY
9%IT ENABLED
SERVICES
6%MANUFACTURING
3%RETAIL
26%OTHERS
THE EDGE IN ASIA PACIFIC
© 2017 Vertiv Co. All rights reserved.
28% C - LEVEL EXECUTIVE/ PART OF SENIORLEADERSHIP
28% NETWORK / DATACENTER / FACILITIESMANAGER
22% IT TEAM BUT NOSPECIFIC TO DATAMANAGEMENT
OTHERS22%
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Key Findings
1. Understanding and Adoption of Edge Computing.
Survey respondents were asked about their perception and understanding of “edge computing.” Forty
percent (40%) of the respondents agree with the industry definition of edge (ie. moving computing power
away from the core and to the edges of the network, closer to where customers are), while 14% relate it to
technologies such as the cloud and Internet of Things (IoT). Notably, 30% of respondents said they are not
fully aware of this trend/technology.
Countries that are most knowledgeable of edge computing are Australia, Singapore and Indonesia, while
countries such as South Korea, New Zealand and Cambodia have very little to no understanding of edge
computing.
Respondents were also asked about the adoption edge computing in their business operations. A majority
of the respondents believe that the market is on the midpoint of adoption regardless of industry.
Figure 4: Rating of edge adoption, according to respondent opinion.
1 2 3 4 5 6 7 8 9 10
Figure 3: Response to the question: “How do you define edge computing?”
CLOSELY RELATEDTO THE CLOUD13%
COMPUTINGSETUP6%
10110111000101011101100101010
MOVING COMPUTING POWERAWAY FROM THE CORE41% NOT FULLY
AWARE30%
RELATED TOINTERNET OF THINGS8% TECH
BUZZWORD2%
EDGEDATA CENTER
SOC
IAL
MED
IA
SOC
IAL
MED
IA
NEWS ARTICLES
NEWS ARTICLES
OPERATIONS
HEADQUARTERS
HEADQUARTERS
SPEED OF DEPLOYMENT
MEA
SURE
PRODUCT
MICRO
MICRO
DISTANCE
UPTIME
CUSTOMER
ENVIRONMENT
WARRANTY
SECU
RITY
WARRANTYANALYZING
AN
ALY
ZIN
G
WARRANTY
TRACK
TRACK
TRACK
SERVICECUSTOMER
DATA
ANALYZESECURITY
PRODUCT
MICRO
UPTIME
TRACK
SERVICECUSTOMER
DATA
DATA
SERVICE
RELIABILITY
MIC
RO
MICRO
BRAN
D
EQU
IPM
ENT
OPERATIONS
ADOPTION
CO
MPU
TING
AN
ALY
ZIN
G
CO
MPU
TING
CO
MPU
TING
UPTIMEDOWNTIME
INTERNET OF THINGS
INTERNETOF THINGS
CO
RESE
RVER
S
MIC
ROST
OC
KS
STO
CK
S
MA
NA
GEM
NT
RACKS
CORE CORE
INFR
AST
RUC
TURE
INFRASTRUCTURE
MARKETBUSINESS
CONVERGE
PRICE
PRICE
SPACE
SPEEDSOLUTIONS
RAPID
INDUSTRY
CO
MPU
TIN
GU
ND
ERST
AN
DIN
G
IND
UST
RY
POWER
EFFICIEN
T
NET
WO
RKFA
CTO
RS
THERM
AL
UN
DER
STA
ND
ING
OU
TSO
URC
ING
POW
ER
TEC
HN
OLO
GY
DEP
OLO
YM
ENT
© 2017 Vertiv Co. All rights reserved.
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2. Infrastructure at the Edge.
Survey respondents were also asked about the type of infrastructure they have at the edge, specifically
micro data centers. Only 1/3 of the respondents said they currently own and operate a micro data center in
their businesses.
Of those who own micro data centers, almost 50% said these were located either at the branch or in their
regional off ices. Only 1/3 said these were located near their main headquarters. Respondents indicate that
they own an average of one to two micro data centers with less than five racks containing data servers
and equipped with thermal management and power solutions.
Figure 5: Deployment of micro data centers, according to location.
OTHERS15%
BRANCHES23%
MAIN HEADQUARTERS36%
REGIONAL OFFICES26%
MICRO DATA CENTER
Notably, however, majority of the survey respondents primarily use micro data centers as a preventive
measure – either as back-up to their core data center or as part of their disaster recovery initiatives. Only a
third of the respondents have micro data centers for their edge initiatives.
Figure 6: Number of micro data centers per business. Figure 7: Number of racks in a micro data center.
20+ RACKS7%
11 - 15 RACKS5%
1 - 5 RACKS67%
6 - 10 RACKS18%
16 - 20 RACKS3%
1 - 2 MICRODATA CENTERS
3 - 5 MICRODATA CENTERS
58%20%
5%
17%
THE EDGE IN ASIA PACIFIC
© 2017 Vertiv Co. All rights reserved.
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3. Factors in procuring micro data centers.
When asked to identify the factors in purchasing a micro data center, majority of survey respondents
identified service reliability (81%) and price (75%) as their main consideration.
Additionally, respondents identified power and monitoring equipment as their priorities in supporting their
micro data center.
4. Challenges in micro data center deployment.
Financial constraints remain an important issue among majority of respondents when it comes to deploying
micro data centers, followed by system compatibility issues and security concerns.
Figure 8: Response to the question: “Why did you set up micro data centers as part of your network?”
ALTERNATIVE DATA CENTERS
BACK-UP INFRASTRUCTURE
PART OF DISASTER RECOVERY / BUSINESS CONTINUITY
SUPPORTS ANALYTICS / KNOWLEDGE GENERATION
SUPPORTS EDGE COMPUTING INITIATIVES
OTHERS
0 5 10 15 20 25
Figure 9: Factors considered important in procuring infrastructure for their edge computing projects
26%
BRAND
75%
PRICE
81%
SERVICERELIABILITY
40%
WARRANTY
27%
VENDORTRACK RECORD
13%
AVAILABILITYOF STOCKS
35%
SPEED OFDEPLOYMENT
OTHERS
2%
Figure 10: Top challenges encountered by respondents in deploying edge computing initiatives, in terms of infrastructure
55%
BUDGETCONSTRAINTS
43%
SECURITYAND COMPLIANCE
29%
I.T. OUTSOURCING
24%
INCREASEDCUSTOMER DEMAND
15%
DATASOVEREIGNTY
52%
SYSTEMCOMPATIBILITY
21%
MEETING UPTIMEREQUIREMENTS
21%
DOWNTIMEISSUES
30%
ANALYZINGDECENTRALIZED
DATA
29%
I.T.ENVIRONMENT
29%
DISTANCEISSUES
27%
VENDORTRACK RECORD
24%
SPACE ISSUES
31%
POWER ISSUES
© 2017 Vertiv Co. All rights reserved.
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5. Future outlook on edge computing.
While understanding and overall adoption of edge computing remains relatively low at this point, 60% of
survey respondents revealed that they are looking to deploy edge strategies within the next three (3) years.
In addition, most of the respondents believe that edge computing will be fully relevant to their business after
three years.
The survey also identified senior management (e.g. Chairman, Board of Directors, CxOs ) as “champions” of
edge computing initiatives, serving as decision-makers for these projects.
Conclusion
While IT and data center professionals have a general understanding of edge computing, overall adoption
remains low in Asia Pacific. This is reflected in their business strategies, deploying micro data centers
mainly as a back-up infrastructure or as part of their disaster recovery initiatives. Market outlook, however, is
positive as respondents indicate that they are looking to adopt some form of edge initiative within the next
three years.
Vertiv believes that edge computing has the potential to become more than just a digital trend here in Asia
due to the positive outlook many businesses have with regards to the technology. In this regard, businesses
must invest in micro data centers that have integrated power, thermal and monitoring solutions, which are
ideal for edge spaces. Investing in micro data centers will not only allow managers to cut costs, but also
allow them to deliver digital services faster to their customers.
Figure 11: Response to the question: “Do you have plans to deploy
edge initiatives in the near future (1-3 years)?”
Figure 12: Response to the question: “Do you think that the edge will
be a relevant part of your business and IT strategy in the mid-to-long
run (beyond 3 years)?”
62% 38% 97% 3%
THE EDGE IN ASIA PACIFIC
© 2017 Vertiv Co. All rights reserved.
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© 2017 Vertiv Co. All rights reserved.
Vertiv-EDGEinAsiaPacific-BR-EN-ASIA
VertivCo.com© 2017 Vertiv Co. All rights reserved. Vertiv, the Vertiv logo are trademarks or registered trademarks of Vertiv Co. All other names and logos referred to are trade names, trademarks or registered trademarks of their respective owners. While every precaution has been taken to ensure accuracy and completeness herein, Vertiv Co. assumes no responsibility, and disclaims all liability, for damages resulting from use of this information or for any errors or omissions. Specifications are subject to change without notice.
