AI-powered edge computing marks a new stage of development in the digital transformation process. This convergence is already propelling business for some organizations, and in the EU, distributed open marketplace Europe, or DOME, will assist CIOs in finding the correct course.
The IT industry is integrating cloud, edge, and AI, with data collection and processing at the edge being crucial for Industry 4.0 applications, precision agriculture, smart cities, and logistics. AI will significantly accelerate and expand the edge’s technological capabilities, according to Luis Fernandes, research director of the European infrastructure strategy area at IDC.
The European Commission-funded DOME project, led by Engineering, aims to establish an open distributed market for cloud and edge services in the EU. The consortium, comprising around 40 European companies, aims to create a market for certified cloud services like IaaS, PaaS, and SaaS, compliant with EU regulations.
The three-year project, launched in summer, aims to offer cloud and edge services to companies and public administrations. Starting next year, online services will be launched, and by the end of 2025, a catalog of certified services will be available. The project prioritizes AI’s growing role in cloud and edge services and integrates with other initiatives.
Certified services for businesses in the EU
The European cloud market is expanding, but the market share of European cloud operators is declining due to dominant foreign providers and fragmented offerings from European providers, causing concern for the European Commission.
DOME aims to improve EU cloud players’ edge computing capabilities by focusing on the go-to-market end. It offers a marketplace for a broader edge presence than hyperscalers and certifies regulatory compliance with EU regulations like GDPR and EUCS. DOME also assesses cloud services’ compliance, making it easier for CIOs.
European cloud operators are invited to join the platform but must present market body-issued certifications. DOME issues a reusable digital certificate after confirming the certificates’ applicability to the suggested service and validity.
An encouragement of innovation
DOME’s strategy involves a centralized catalog of cooperating local marketplaces, sharing compliant services for commercial propositions. This approach ensures consistency in market entry and publication checks for each seller, as the project is agnostic with respect to sellers.
Many European operators lack online marketplaces for ICT services, according to Cafiso. DOME fills this gap, offering a catalog and a complete online payment infrastructure. Startups in the sector can benefit from international marketplaces like DOME, which can support innovation and provide a platform for online services.
The market is now open and offers a variety of services, including IaaS, as well as numerous deals for public administration and smart agriculture. However, the catalog is expanding, and the wider it becomes, the more it will stimulate market interest.
At the forefront of the digital revolution
Accenture’s Teresa Tung emphasizes that AI’s potential is primarily at the edge, where data generation and decision-making are performed, particularly in self-driving cars and smart factories. Investing in edge technologies like the cloud allows companies to fully utilize AI’s capabilities, while inference and training are also performed at the edge.
Connected devices collect data, analyze it using AI algorithms, and extract trends for targeted interventions. The data is sent to a central cloud system for further processing, integrating the cloud, edge, and AI ecosystem. As digital services increasingly rely on cloud infrastructures, many require edge processing, and AI is a key component of new digital services development, necessitating cloud infrastructure.
AI at the edge is growing, especially in experience-related use cases, according to IDC’s Fernandes. The EMEA AI-Ready Infrastructure Survey 2024 shows 25-30% of organizations use edge computing for customer and employee experience, automation, and process optimization. Benefits include performance, productivity, efficiency, security, privacy, and compliance.
Value of the hybrid cloud model in the market
IDC research indicates that companies are increasingly opting for a hybrid cloud model, preferring standard shared platforms over dedicated ones for modern workloads. They also demand systems optimized for ad hoc environments with specific privacy, security features, and power and cooling techniques. Four out of five respondents prefer this hybrid approach for their IT infrastructure.
The global market for AI at the edge, which combines AI algorithms in on-prem devices with edge processing capabilities, is expected to exceed $27 billion this year and grow nearly ten times by 2032, per a Fortune Business Insights study. The industrial segments most likely to adopt these solutions are automotive, manufacturing, healthcare, energy, consumer goods, IT, and telecommunications, with Europe playing a significant role in these markets.
