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Technology Stocks : Investing in Exponential Growth

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From: Paul H. Christiansen10/20/2018 1:29:16 AM
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Next Big Thing In Cloud Computing Puts Amazon And Its Peers On The Edge

Hangar Technology wants to shake up the drone market by getting rid of human pilots. But the bigger story might be how the startup uses the next big thing in cloud computing, called edge computing.

Edge computing deploys data processing, storage and networking close to sensors and where other data originate. The goal is to process and analyze data locally in real time rather than send it to faraway data centers in the internet cloud and wait for a response of, say, 150 milliseconds.

That sliver of time matters in some applications: A self-driving car that needs to detect a pedestrian or storm-damaged sign. A doctor who performs remote surgery using augmented reality tools. A video surveillance system equipped with facial recognition to identify a known shoplifter or terror suspect. Sensors that detect repairs needed on robotic arms in factories and oilfield pumps.

Edge computing is the next step that companies like Amazon.com ( AMZN) are taking to expand the cloud. Incumbents mean to protect millions or billions of dollars in their revenue from poaching by edge upstarts. Companies new and old are developing relevant hardware and software.

"I'm convinced edge computing is here to stay," said Marco Argenti, vice president of technology for Amazon Web Services. "It's a natural evolution. Not all data needs to be transferred to the cloud to be processed. There might be bandwidth costs, cellular costs or it may be difficult to connect to the cloud. Or, you just need to react really fast, like in the case of a robot."

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