In the past, domestic companies were followers in the field of cutting-edge technology, often waiting for trends to emerge from the United States before gaining traction. However, this long-standing convention is now being rewritten.
One example is the smartphone sector, where OPPO and vivo have introduced designs featuring hidden cameras, finding new technological solutions beyond the notch screen. This marks the first time Chinese companies have stood on the same starting line as the United States in the smartphone arena.
Another hot topic is the rapidly evolving field of edge computing. With the accumulation of cloud computing, big data, and 5G technology, edge computing has entered a tense “arms race” phase, with Chinese companies now competing with American firms that have long held a position of technological dominance.
Edge computing is the infrastructure, fighting for the future battle
What exactly is edge computing?
In fact, edge computing is not a disruptive technology that emerged overnight. As a distributed computing architecture, the evolution of IT infrastructure over the years has been a centralized process, where all data storage, processing, and network interactions needed to occur at centralized data centers. As the saying goes, “what is long united must divide, and what is long divided must unite.” Edge computing, however, takes a reverse path, moving applications, data processing, computing, and security functions from network central nodes to logical edge nodes, breaking down the originally centralized architecture into multiple points at the edge.
Although it is called edge computing, it is anything but “marginal”; it has become one of the most fashionable and cutting-edge technology fields today. Whether it is American tech giants like Amazon, Microsoft, Google, Facebook, and Intel, or Chinese companies like Huawei, Alibaba Cloud, Wangsu Science & Technology, and Tencent Cloud, all have entered the edge computing “game,” sharpening their knives for competition.
Why has edge computing suddenly become so popular? Recently, the OpenStack Foundation, which holds an authoritative position in the cloud computing field, released a Chinese version of a white paper on “Edge Computing – Beyond Traditional Data Centers.” The white paper states that the explosive growth of the Internet of Things (IoT) and the upcoming trends for more immersive and interactive applications are driving the focus of data storage and computing away from central data centers and towards the edge. Applications such as autonomous driving, smart factories, smart cities, and IoT are challenges that traditional data centers cannot handle, fundamentally changing the topology of computing and networking in the next four to five years.
Coincidentally, another report indicates that the era of intelligent interconnectivity has arrived, with conservative estimates suggesting that by 2020, there will be over 50 billion terminals and 212 billion sensors globally, with China accounting for about 7% of the total, approximately 3.5 billion terminals and 15 billion sensors, far exceeding the current level of the Internet; each IoT node will generate a massive amount of real-time data, and it is expected that by 2020, the total global data volume will exceed 40ZB.
It is evident that the IoT will connect a vast number of devices, leading to an exponential increase in demand for computing and transmission. A report by IDC titled “China’s Manufacturing IoT Market Forecast 2016-2020” indicates that by 2018, 40% of data will need to be analyzed, processed, and stored at the network edge. The traditional centralized cloud service architecture will be unable to meet the demands of edge computing, leading to issues such as slow response times, service interruptions, and security concerns.
Therefore, edge computing has reached a stage where it must mature and be implemented. As a supporting tool, it is crucial to the digitalization process of almost all industries in the future, serving as the infrastructure for smart cities, new retail, industrial internet, smart homes, and more. The tech industry has already recognized this and is taking swift action, with companies eager to seize the high ground and the first pot of gold in edge computing.
The US-China “Competition” Begins: American Companies Lead in Cutting-Edge Technology
Currently, in the realm of edge computing technology and applications, the industrial sectors of China and the US are already engaged in a fierce competition. Whether it is telecom operators, internet companies, or tech firms with years of experience in IT infrastructure, all are turning to join the edge computing competition.
In the field of cutting-edge technology, Silicon Valley in the US has always been more sensitive. In recent years, from chips and virtualization to software-defined and perceptible networks, American high-tech companies have played a role as the source of innovation. Similarly, American high-tech companies have a slight edge in technological leadership in edge computing, but they are weaker in application scenarios, market acquisition capabilities, and scalability compared to Chinese companies.
Looking at the US market, the players entering the edge computing field are familiar faces. Amazon launched its AWS Greengrass edge computing platform in 2016, allowing real-time interconnection and response with customers, providing an environment for developing edge applications and analytics. In fact, Greengrass is part of its IoT cloud solution, extending AWS’s cloud capabilities to local devices, enabling data collection and analysis closer to the information source while securely communicating on local networks. In terms of sales, Amazon has also opened it up to partners like Lenovo and NXP, although the penetration has been somewhat slow.
Microsoft was a bit later, launching its Azure IoT Edge service for IoT at the Build conference last June, pushing computing capabilities from Azure to edge devices. However, it wasn’t until the end of June this year that the official version was finally released and made open-source via GitHub, allowing every IoT device to utilize cloud services. It is said that Azure IoT Edge also includes machine learning and AI cognitive modules. It seems that Microsoft is merely making an appearance in edge computing without taking significant action.
Meanwhile, hardware manufacturers like Cisco, Intel, and HP are also exploring MEC (Mobile Edge Computing) technologies and applications. For instance, Intel has shared some of its experiences and plans regarding the development of IoT and 5G edge computing in the industry. At the MWCS2018 IoT summit held on June 28, Robert Topol, General Manager of Intel’s Communication and Devices Group for 5G Business and Technology, specifically spoke on the topic of edge computing, discussing the value of edge computing in applications like drones and internet factories. He believes that the frequency and speed of edge computing evolution, along with its commercial framework, will determine the changes in future IoT application scenarios. It is foreseeable that hardware-centric manufacturers may only play a supporting role in the edge computing field.
Overall, companies like Amazon, Microsoft, and Intel entered the edge computing field relatively early but lack significant expansion initiatives, raising suspicions of merely preemptive positioning. Moreover, since these giants do not engage directly with frontline application scenarios, it is challenging for them to provide corresponding solutions for different industries, which naturally poses obstacles for later implementation.
Dual Efforts in Technology and Market: Edge Computing is an Opportunity for China to Catch Up
Having discussed the situation in the US, where do Chinese companies stand in the field of edge computing? Can they gain the upper hand in the competition with American firms?
If we look back ten years, Chinese companies and the industry might not have had a chance to win this battle. However, after years of experience with smartphones, IoT devices, cloud computing, big data, and IoT technologies, Chinese companies not only occupy a place in technological reserves but have also built a solid foundation in application scenarios, which in turn has propelled technological maturity. These factors have increased the stakes for Chinese companies in vying for dominance in edge computing, boosting their confidence in the competition.
It is evident that the outcome may be more optimistic than expected. With the accumulation of cloud computing, big data, IoT, and 5G technologies, Chinese tech companies will no longer be followers in edge computing, nor will they start from scratch; instead, they have a high starting point and foundational support. Considering the extensive and burgeoning applications in IoT, industrial internet, smart cities, autonomous driving, and intelligent connected vehicles in China, it is more conducive to rapidly apply and enhance technological maturity, refining segmented solutions for various industries. Edge computing could very well become a significant opportunity for Chinese tech internet companies to turn the tide.
So, which Chinese companies are on board with edge computing? Given the long technological chain involved in edge computing and its high industry applicability, a detailed analysis of each is not feasible, but there are two main forces intertwined that are more capable of representing Chinese companies in the US-China “competition” in edge computing.
One is CDN service providers, who may be the most qualified to lead the entire edge computing market and help China gain dominance. The mission of CDN in content and application distribution has inherently been a distributed architecture, distributing data and applications to the nearest local nodes to reduce latency and improve user experience at the edge. The concept of edge computing aligns closely with this, but it requires CDN nodes to upgrade and possess computing, storage, security, and intelligent capabilities.
Gartner’s Vice President of Cloud Service Provider Research, Ted Chamberlin, is optimistic about the development space for CDN providers in edge computing. He clearly stated that for edge routing and switching services, and even for traditional firewalls in DDoS (Distributed Denial of Service) devices, the biggest threat comes from CDN service providers that have a better chance of capturing the edge computing market. Moreover, as edge computing gains traction, they have recently realized that they can easily replace wide area network edge devices, positioning themselves to take the lead in edge computing.
In the domestic CDN service sector, Wangsu Science & Technology is the earliest company to enter the edge computing field and may also be the biggest beneficiary in the future. Previously, Wangsu Science & Technology revealed that it has accelerated the upgrade of its original CDN network to an edge computing network and has begun building an open edge computing development framework and application environment, planning to provide more resources and service modules, and offer IaaS and PaaS services. Of course, CDN service providers also have their shortcomings, such as a lack of accumulation in artificial intelligence and security function modules, which requires them to have a broader vision and learn to collaborate to build an edge computing ecosystem. This will increase their chances of success.
The second group consists of cloud infrastructure providers like Huawei Cloud and Alibaba Cloud. An industry report indicates that, to some extent, edge computing will partially encroach on the territory of the cloud service market. This is understandable, as when computing, storage, and networking shift towards edge devices, the burden on central data centers naturally decreases, meaning not all applications and data processing need to rely on large central data centers. Therefore, Alibaba Cloud and Huawei should adopt a more proactive attitude towards edge computing.
Currently, these two companies play different roles. Alibaba Cloud is working to fill gaps in cutting-edge fields like artificial intelligence and IoT, accelerating industry applications. At the Cloud Habitat Conference on March 28 this year, Alibaba Cloud announced a strategic investment in edge computing and launched the IoT edge computing product Link Edge, although it came a bit later than CDN providers. However, due to its advantageous position in the cloud service market and some accumulation in smart cities, it should not be underestimated for now.
In contrast, Huawei’s position is somewhat similar to that of Intel and Cisco. While they did not miss the opportunity in the cloud service market, their hardware-centric identity limits their development space. The only noteworthy point is that Huawei may achieve certain breakthroughs in chips, networking, and hardware, and may launch an integrated edge computing “machine” solution, but their insights and solutions in the application layer may lag behind. Of course, Huawei cannot be absent, but whether it can become a significant force remains to be seen.
Conclusion: The Edge Computing Race Begins, and the US-China Competition is a Marathon
After comparing so many players in the edge computing field, it is clear that the outcome will not be determined overnight. Compared to the rapid popularization and application of cloud computing and big data, the US-China competition in edge computing will not be resolved quickly; it should be a marathon. On a broader level, it benefits from the rapid progress of supply-side reform and industrial digitalization, while on a specific industry level, it is constrained by the update cycles of various application fields. As Li Dong, Vice President of Wangsu Science & Technology, said, this is a long-term market that deserves over five years of investment.
Moreover, it is important to emphasize that this struggle is not limited to a single technological dimension but will involve the development of a package of technologies, including IoT, 5G, autonomous driving, and artificial intelligence. This complexity makes the competition in edge computing even more intricate.
Now, the starting gun for the long race of edge computing has been fired. As an important component of the infrastructure for future business, social, and economic operations, edge computing plays a leverage effect and serves as a booster. Only by establishing a foothold in edge computing can IoT, smart cities, and other areas accelerate, and we look forward to Chinese tech companies making breakthrough progress in this field.