Edge Server Spending to Reach US$19 Billion by 2027, Enabling Integration of Edge-Based Solutions as Part of Edge-to-Cloud Orchestration Strategy

Edge-to-cloud orchestration will play a major role in the evolution of cloud computing, with emerging technologies such as artificial intelligence (AI), machine learning (ML), robotics, and the Internet of Things (IoT) driving the adoption and deployment of edge-to-cloud architecture. According to a new report from global technology intelligence firm ABI Research, total edge server spending is projected to hit US$19 billion by 2027. On-premises enterprise deployment is set to contribute nearly US$10.5 billion, making up 55% of 2027 total revenue. Carrier deployment is expected to reach US$7 billion, followed by hyperscalers at US$790 million and neutral hosts at US$740 million.

“Expect to see more integration of public, private, and hybrid cloud environments, breaking down data silos. Organizations are realizing the importance of edge servers in enabling edge-based applications to be integrated as part of the overall cloud strategy and, more importantly, the business value that can be derived by having an end-to-end data management strategy surrounding their cloud and edge environments,” explains Yih-Khai Wong, Distributed and Edge Computing Senior Analyst at ABI Research.

Cloud-native solutions such as containers and APIs remain a critical component of any organization’s digital strategy. By deploying an edge-to-cloud orchestration platform, organizations can now leverage workloads deployed on the edge with cloud-native applications for a more holistic and integrated view of the business, accelerating better business decisions.

“The emergence of AI will also drive the need for edge-to-cloud orchestration. Current modern edge infrastructure now can process AI inference models at the edge, bypassing the need to transfer data collected at the source to a centralized cloud repository,” Wong concludes.

These findings are from ABI Research’s Edge-to-Cloud Orchestration: Bridging Cloud-Native and Edge Applications application analysis report. This report is part of the company’s Distributed and Edge Computing research service, which includes research, data, and ABI Insights.