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Cloud Computing Role in Edge AI: Why It’s More Important Than You Think

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Cloud computing and edge AI are two sides of the same coin.

As we stand on the brink of a new era, characterized by the exponential growth of data and the necessity for real-time processing, understanding how these two components interact is vital for any forward-thinking organization.

By 2025, a staggering 75% of enterprise-generated data will be created and processed at the edge. (Gartner).

At the same time, cloud computing is set to play an indispensable role in managing, analyzing, and optimizing this data.

In this blog, we’ll explore the cloud computing role in edge AI, grounding our discussion in concrete statistics, real-world applications, and industry insights that resonate with our experiences in product engineering.

The Growth of Edge AI: Why It Can’t Survive Without Cloud Computing 

The demand for edge AI is driven by an explosion of data that we can barely comprehend.

As per Edge Delta, in 2023, the world created around 120 zettabytes (ZB).

This creates a pressing need for processing capabilities that can manage and analyze data in real-time.

Cloud as the Brain

Edge devices are fast, but limited. They can handle small-scale tasks, but when the process gets complex, it requires a cloud.

In fact, 80% of the heavy lifting — model training, long-term analytics, data crunching — still happens in the cloud.

The reality is simple: edge devices act as the eyes and ears, while the cloud serves as the brain, orchestrating the analysis and decision-making processes.

Edge Devices as Sensors

Take autonomous vehicles for example.

Data Storage Requirements

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Every Tesla on the road generates about 1 terabyte of data per week.

While the car itself makes real-time decisions at the edge, all that data needs to be uploaded to the cloud for further analysis, refining the AI models that will make future vehicles smarter.

Without the cloud, this process would be impossible.

Cloud Computing Role in Edge AI: 4 Real-World Use Cases

Let’s dig into some tangible examples that illustrate the power of cloud computing and edge AI working together.

1. Smart Cities: Barcelona’s Traffic Solution

Barcelona offers a clear example of edge AI and cloud working together.

The city uses edge AI to monitor traffic in real-time, dynamically adjusting routes and signals. As a result, they’ve reduced traffic congestion by 21%, cutting down on both commute times and emissions.

But the cloud plays a key role here too.

All that traffic data is sent to the cloud, where predictive analytics run large-scale models, helping city planners forecast and plan for future traffic conditions.

Barcelona Smart City

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2.Remote Healthcare: The Power of Edge and Cloud in Patient Monitoring

Remote patient monitoring devices like wearables, glucose monitors, and ECG machines generate heap of  data daily.

The edge AI in these devices monitors and responds to real-time conditions, like abnormal heart rates or glucose levels.

However, this is only half of the equation.

The cloud stores and processes long-term health data, helping doctors analyze trends and make informed medical decisions over time.

Remote Healthcare

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3. Agriculture: John Deere’s Precision Farming

In the agricultural sector, John Deere uses edge AI and cloud computing together in their precision farming solutions.

Tractors equipped with edge AI sensors collect real-time data on soil conditions, moisture levels, and crop health as they move through fields.

Edge AI processes this data locally to make quick decisions, such as adjusting the amount of fertilizer or water applied to certain areas.

Meanwhile, all this data is uploaded to the cloud, where John Deere’s AI models analyze it over time to optimize farming techniques across different seasons and regions.

Here are the major components of precision farming.

John Deere's Precision Farming

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4. Transportation: UPS’s Smart Logistics

UPS has introduced smart logistics systems that use edge AI.

In each truck, this system processes GPS and traffic data to dynamically adjust delivery routes, helping drivers avoid traffic jams and reduce fuel consumption.

At the same time, UPS relies on cloud computing to analyze vast amounts of delivery data across its global fleet.

By leveraging AI models in the cloud, UPS can predict future delivery trends, optimize fleet management, and improve logistics efficiency.

Technical Breakdown: The Cloud-Edge AI Workflow

To appreciate the cloud computing role in Edge AI, we must examine the workflow that defines their relationship.

Edge Devices Handle Immediate Inference (Low Latency)

Edge AI excels in situations where latency matters — when decisions need to be made in real time.

For example, facial recognition at airports. The edge AI at kiosks has just 100 milliseconds to verify your identity before letting you through security.

But the edge can’t do everything.

The kiosk sends your data to the cloud, where more in-depth security checks happen. This approach ensures both fast service and secure data handling.

Cloud Performs Model Training and Heavy Computation

On the other hand, tasks like AI model training require enormous computational power.

Utilizing hardware such as H200 GPUs is a game-changer, drastically accelerating model training in the cloud with unmatched computational power, essential for driving real-time AI advancements in fields like autonomous driving and healthcare, ensuring faster and more efficient outcomes.

Google’s cloud-based AI platforms can train models 10x faster than traditional on-premise systems.

This is crucial for industries that rely on constantly evolving AI, such as autonomous driving, healthcare, or finance.

The Challenges and Real Solutions

According to Cisco, IoT devices produce 2.5M terabytes of data each day, and less than 1% of all unstructured data is used. Sending all that data to the cloud isn’t practical, so hybrid solutions are emerging.

In hybrid cloud-edge architectures, edge AI handles immediate, real-time processing, while only essential data is sent to the cloud for further analysis. This minimizes bandwidth usage and improves efficiency.

When edge AI devices are connected to the cloud, security becomes a concern. The solution? End-to-end encryption and secure data transmission protocols.

Additionally, techniques like federated learning allow AI models to be trained locally on edge devices, only sending model updates (not raw data) to the cloud. This approach improves security while still benefiting from cloud-scale model refinement.

AWS, Google, and Microsoft have reported a 40% increase in revenue from cloud services dedicated to AI workloads in the past three years.

This highlights the financial implications of adopting these technologies, but it also presents opportunities for cost savings through optimized workflows.

Adopting a hybrid cloud architecture can help organizations balance costs while getting the most out of both cloud and edge computing.

Our Thoughts? Cloud Computing is the Backbone of Edge AI 

We’re a software product development company. 

For the past 15 years, we’ve been helping businesses solve real problems with NextGen technologies. 

At the core of our expertise is a deep understanding of both cloud computing and edge AI and how they can work in harmony to deliver tangible results.  

From implementing large-scale cloud architectures to optimizing edge-based AI systems, our team brings the technical depth, industry knowledge, and hands-on experience needed to deliver solutions that work — not just in theory, but on the ground, where it matters most. 

If you’re ready to explore how cloud computing and edge AI can drive growth and innovation in your business, let’s connect.  

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