Rittal Blog

Optimizing Edge Deployments [Pt. 2]: Measuring ROI of Edge Computing

November 17 2021 by Herb Villa


Listen to part 2 of our 3-part series on optimizing Edge deployments. (watch part 1 here) 

Knowing that ROI is a metric that is important, Herb Villa, Senior Solutions Consultant, discusses how to measure the ROI of Edge computing. If there is the capacity to react more quickly and be more proactive than reactive, that will contribute to your ROI. But, Herb cautions not to get too wrapped up in the metrics. If the numbers are showing a year-over-year improvement, then you are winning, and that is what is going to contribute to your bottom line.

Watch for another video discussion with Herb in the upcoming weeks!


Video Transcript:


Can you measure the ROI of Edge optimizations?

So the concept of ROI is the concept of ROI — our return on investment. What is in it for me? it will be measured in process efficiency gains, that's something we want to look at. Can I gain that? So when we look at the ROI, we have to consider, of course, let's talk acronyms, our TCO, our Total Cost of Ownership. We have to make sure that there is that benefit. So we will make sure that we will see improvements that will ultimately add to my bottom line.


How important is ROI for Edge deployments?

It is important. I don't think the ROI is as important as we would see in other more “traditional IT deployments.” But, looking at the overall manufacturing footprint or any Edge deployment, the question is, “will I start to see gains from deploying this?” And the answer is yes, but has to be viewed as part of an overall picture. Yes, I think we can show a ROI advantage, looking at all of the cost factors.


What does an Edge deployment cost?

What is it going to cost me to do an Edge deployment? From a Rittal perspective, it's an enclosure, it's climate control, it's all the other associated subsystems ... power monitoring, and so on. The key is we want to make sure that we are spending our money wisely. But, then we also have to consider the bigger picture. The Edge deployment will be one very small component of a much larger installation. So, let us keep our costs in perspective for what else we will be supporting.


How do ROI results help me be more proactive?

Part of ROI is that scheduled time. I have to take my equipment down for repairs, whether I do it quarterly, annually, whatever it is. I can better even plan and manage that. That helps my bottom line. I'm not wasting time. I'm not wasting money. I'm not having people standing around trying to figure out what's going on. I got it all handled. It's all part of the overall process. Edge gives me that.


Thanks for watching!


Check out Part 1: Real-World Computing Experiences 


Want to know more about Edge deployments? Learn more about the Edge by watching our video, “Where Is the Edge?




Categories: Edge Computing

Herb Villa

Written by Herb Villa

Rittal Sr. Applications Engineer