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Living on the Edge 010010001

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EDGE COMPUTING 0100010111011000100101

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IN THE NEW
OT ECOSYSTEM

CONNECT: License to distribute this research

report has been granted to:

lnsresearch.com
Living on the Edge
EDGE COMPUTING IN THE NEW OT ECOSYSTEM

TABLE OF CONTENTS

SECTION 1: Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

SECTION 2: Demographics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

SECTION 3: The Edge in the New OT Ecosystem . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

SECTION 4: Edge Forms and Types . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

SECTION 5: Edge in Operational Architecture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

SECTION 6: Edge in Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

SECTION 7: Edge in Market . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23

SECTION 8: Recommendations and Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27

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lnsresearch.com
Section 1

Executive Summary
 Executive Summary
Edge computing is one of today's leading disruptive digital THE EDGE COMPUTING WORLD
PAGE
technologies. Until recently, it was overshadowed by the Cloud
4
with its power, scalability, and as-a-service platform capabilities.
However, there is an increasing realization that both have their
place in the Industrial Internet of Things (IIoT) environment and that
THE NEW OT SYSTEM
EDGE COMPUTING IN

Edge offers a number of capabilities and advantages that make it a Connected

Living on the Edge

Airplanes REAL-TIME
Edge Gateway Server ANALYTICS
key player in the new Operational Technology (OT) Ecosystem, as Connected Oil Platforms

TRANSACTIONAL
ANALYTICS
well as in evolving Operational Architectures. This study builds on BUSINESS
INTELLIGENCE
LNS Research's 2018 report: Enabling an Operational Architecture
Smart Connected Appliances
Streetlights Smart Factories
Connected Wind Turbines

for Applications and Analytics. Moreover, this ebook discussed Smart Traffic Lights

the evolution of Edge computing, where it came from, and where

it is going, including illustrative case studies in the process, hybrid/

TABLE OF
batch, OEM, and discrete industries. We will address the Edge Edge Gateway Server DATA CENTER/CLOUD Edge Gateway Server
CONTENTS
market, plus recommendations on selection criteria and guidelines
LATENCY
SECTION on applications, with expected benefits. As we shall see, perhaps NOT AN ISSUE
Connected Rail Systems

1 2 3 no other disruptive technology comes in so many different sizes MEDIUM LATENCY

REQUIREMENTS Smart Grids

4 5 6
Smart Buildings
Mobile Devices
and formats with its metamorphic ability to complement or replace LOW LATENCY
7 8 REQUIREMENTS
existing hardware, or constitute an entirely new system, as well as Connected Trucks

support new capabilities, such as analytics at the Edge. Connected Cars

Edge Gateway Server

Section 2

Demographics
 Survey Responses
LNS Research executed a global survey on the state of Industrial
PAGE
Transformation (IX) programs and related use cases. We surveyed
6
executives, management, IT, engineering, quality, and operations 11% 15%
personnel across a wide range of industries and geographies. The
survey had more than 300 respondents across the process, batch/
THE NEW OT SYSTEM
EDGE COMPUTING IN

hybrid, and discrete industries. Questions on analytics, Edge

Living on the Edge

computing, and cybersecurity were included in the survey.

30%
1%

5%
9%
TABLE OF
33% 29%
CONTENTS
36%
SECTION
49% 48%
1 2 3
4 5 6 37%
7 8
31% 22%

GEOGRAPHIC DISTRIBUTION COMPANY REVENUE BY SIZE INDUSTRY TYPE

North America
Small: Less than $250 Million Discrete Manufacturing
Europe
Medium: $250 Million to $1 Billion Process Manufacturing
Asia/Pacific
Large: More than $1 Billion Batch Manufacturing
Rest of the World
Others
 Survey Responses (Cont.)

PAGE JOB TITLE

7
Manager 51% 11% 15%
Director 24%
THE NEW OT SYSTEM
EDGE COMPUTING IN

12%
Living on the Edge

Vice President (VP / SVP / EVP)

44% 30%
CxO 9%
President 4%
0% 10% 20% 30% 40% 50% 60%

TABLE OF AREA OF RESPONSIBILITY

CONTENTS

SECTION Information Technology 35%

1 2 3
Operations 24%
4 5 6
7 8 Engineering 13%
Quality 9%
Product Design 4%
Research & Development 4%
Procurement 3%
Maintenance 2%
Logistics 2%
Supply Chain 1%
Service 1%
Compliance 1%
0% 5% 10% 15% 20% 25% 30% 35% 40%
Section 3

Edge in the New OT Ecosystem

 Edge in the New OT Ecosystem
Today's leading disruptive digital technologies are having a
PAGE
significant impact on the traditional Operational technology (OT)
9
system architecture which, for years now, is based on the 1990s
Purdue Enterprise Reference Architecture model embodied in the
ISA 95 standard. With the advent of the Cloud, big data, advanced
THE NEW OT SYSTEM
EDGE COMPUTING IN

analytics, including artificial intelligence (AI) and Machine Learning

Living on the Edge

(ML), and low-cost computing, these Information Technologies have

migrated into the OT environment to stay.

THE NEW OT ECOSYSTEM

Business
= DIGITAL TWIN Transactional
TABLE OF Computing
CONTENTS Platforms External
Internal OT 3rd Party Cyber
Platform OT Platform Threat
SECTION
Historian LIMS Monitor
1 2 3 Advanced
4 5 6 Computing
Platform I/F I/F I/F I/F I/F I/F
7 8

Human
Machine CONNECTIVITY BUS
Interface

Machinery Field Safety Electrical

Controllers Analyzers
Monitoring Networks Systems Systems

Wired Edge
Wired I/O Devices Connected Wireless Wireless Edge
Worker Sensors Devices
 Edge in the New OT Ecosystem (Cont.)
The result is that data can now be acquired from anywhere on the
PAGE
factory floor and across the supply chain, and computing capability
10
can take place almost anywhere between the on-premise corporate
data center and the data source itself. This has led to two common
definitions of what we know as Edge. First, the IT definition of Edge
THE NEW OT SYSTEM
EDGE COMPUTING IN

where computing takes place anywhere outside of the corporate

Living on the Edge

data center that is closer to the source of the data; and second, the
OT definition which says that computing takes place at on, or very
near the source of the data…on the pump, near the tank, on the
equipment, or integrated with the machine.

EDGE COMPUTING DEFINITIONS - How Do You Define Edge Computing?

TABLE OF
CONTENTS 21%
a) Computing outside of the IT 25%
SECTION data center, nearer the data source 28%
1 2 3
4 5 6 b) Computing at, on, or integral 25%
25%
7 8 to the field device or equipment
32%

30%
Both a) and b) 31%
27%
Process
Discrete
23% Batch
Neither a) or b) 14%
11%

2%
Other. Please specify: 6%
3%

0% 5% 10% 15% 20% 25% 30% 35%

 Edge in the New OT Ecosystem (Cont.)
Thus, data acquisition from the process or factory operations is
PAGE
no longer limited to flowing through the control system, be it
11
a Distributed Control System (DCS) or a Programmable Logic
Controller (PLC). In addition, with the dawn of wireless technologies
such as Wi-Fi and cellular communications, e.g., 4G and now 5G,
THE NEW OT SYSTEM
EDGE COMPUTING IN

many Edge devices will be wireless. No matter which definition, Edge

Living on the Edge

is an integral part of IIoT, where Edge’s role is to connect and deliver

data to where it is needed, and in many cases, do much, much more.
The ramifications of Cloud and Edge in the OT Ecosystem are
pronounced, especially with Edge devices whose roles fall under
both IT and OT. IT/OT convergence has affected how roles and
organizational structures are changing and positively impacting the

TABLE OF
need for focus on Edge. With IT generally leading the selection of
CONTENTS
Edge devices, OT needs to step up its roles and skillsets to deal with
SECTION Edge. OT needs a greater understanding of operating systems, LINUX
1 2 3 in particular, microservice architectures, communications protocols,
4 5 6 and programming languages such as Python and Java, in addition to
7 8
its traditional control system environment.
Section 4

Edge Forms and Types

 Edge Forms and Types
Edge devices also have roots in several sources and are used in
PAGE
multiple ways in the IIoT environment:
13

1. Traditional IT networking and computing devices

2. Derived computing platforms
THE NEW OT SYSTEM
EDGE COMPUTING IN

3. Board level platforms

Living on the Edge

4. Control system components

Traditional IT networking and computing devices include gateways,

such as routers and switches, standard PCs and servers, devices long
used in both IT and OT networks, and computing centers that are
renamed Edge devices even though the devices haven’t essentially
changed.
TABLE OF
CONTENTS

SECTION WHO'S USING WHAT? - Which Edge Device Companies Are You Currently Using?
1 2 3
38%
4 5 6 Dell EMC 45%
7 8 42%

20%
HPE 18%
27%

31%
Intel 38%
41%
Process
Discrete
44% Batch
Cisco 42%
47%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

 Edge Forms and Types (Cont.)
The second group is computing platforms. These include mini-PCs
PAGE
derived from standard hardware but modified for industrial use with
14
special capabilities such as advanced graphics, built-in Wi-Fi, high
availability and redundancy, hardened environmental enclosures,
and other features. To date, most of the installed base to date of
THE NEW OT SYSTEM
EDGE COMPUTING IN

standard mini-PCs is in the batch/hybrid and discrete industries,

Living on the Edge

while the derived versions with special characteristics are more likely
found in the process industries.

WHO'S USING WHAT IN OT? - Which Edge Device Companies Are You Currently Using?

3%
Stratus 6%
TABLE OF 9%
CONTENTS

3%
SECTION Raspberry PI or equivalent
6%
1 2 3 single-board computer
8%
4 5 6
7 8 Process
0%
Opto 22 1% Discrete

3% Batch

3%
Advantech 2%
6%

10%
Other. Please specify: 6%
4%

0% 1% 2% 3% 4% 5% 6% 7% 8% 9% 10%
 Edge Forms and Types (Cont.)
The third group includes board-level computing platforms, The last major category includes Edge devices from control
PAGE
typically running Linux or micro-services, a good example of which systems vendors, both major DCS vendors, as well as smaller
15
is Raspberry Pi. Here we also find several startups in the oil & gas independent players. Some of these vendors allow very flexible “roll-
upstream industry segment who have new novel designs and form your-own” systems that combine traditional PLCs or controllers with
factors that combine data acquisition, storage, control capability, Edge devices, standard input/output modules (I/O), human-machine
THE NEW OT SYSTEM
EDGE COMPUTING IN

application programmability, wireless communications, and battery interfaces (HMIs), and applications for a customizable solution. As
Living on the Edge

backup all in one device.
SAMPLING OF EDGE DEVICES FOR UPSTREAM OIL & GAS
traditional control systems “open up,” we have begun to see more
hybrid architectures incorporating edge devices in various roles.
Finally, we note that many traditional field devices have been
renamed Edge devices as additional capabilities, such as built-in
sensors, on-device memory, programmability, and communication
were added to improve operability. LNS won’t identify this as a

TABLE OF
separate category, only to say that Edge capabilities can be added to
CONTENTS
traditional hardware.
SECTION
1 2 3
4 5 6
7 8

UPSTREAM
OIL & GAS
Section 5

Edge in Operational Architecture

 Edge in Operational Architecture
In addition to Edge device location, Edge devices can also be The second use category is data acquisition. Edge devices, along
PAGE
categorized by the role they play in the operational architecture. LNS with lower-cost sensors, are used to collect additional data from and
17
Research sees five primary roles for Edge devices: around equipment, machines, and processes. The data is usually
passed on through the IIoT to the Cloud for advanced analytics,
1. Connectivity and Access such as Digital Twins, but can be delivered anywhere on-premise,
THE NEW OT SYSTEM
EDGE COMPUTING IN

2. Data Acquisition to a control system, to a historian, or to an advanced computing

Living on the Edge

3. Analytics server running MES/MOM application. Likewise, location, inventory

4. Control level, and status in the supply chain are also common applications.
5. Cybersecurity Intelligent wearables that monitor worker location and biometrics
can also be considered a form of Edge devices.
Connectivity includes routers, switches, and other gateways,
devices for connecting and controlling flow between and within

TABLE OF
networks and devices.
CONTENTS

SECTION THE NEW OPERATIONAL ARCHITECTURE

1 2 3
4 5 6 ERP
Suite CRM HCM SCM
7 8 OPERATIONAL IX Applications
BI Tools ENTERPRISE
DATA LAKE Quality 4.0
Digital DATA LAKE
EHS 4.0 APP
APP
Twins
Connected Worker

Data Cleansing, Aggregation and Compaction

Data Remote
SCM EAM ENGR/ MES/ Sensors Market Weather GIS Social Connectivity
PLM MOM Historian

Structured Data Time Series Data Unstructured Data

Data Connectivity, Data Model, and Persistance

Suppliers IIoT/ Edge Instrumentation, Actuation, and Controls Customers

IIoT/Edge IIoT/Edge
Factory Floor Process
 Edge in Operational Architecture (Cont.)
The third category combines data acquisition with analytics at the LNS recognizes a fifth category, cybersecurity. While the majority
PAGE
Edge. In this case, the Edge device may consume a smaller set of the of current cybersecurity software runs on standard servers, LNS sees
18
overall data that might be processed in the Cloud, but because of its the need for distributed cyber defense where active and passive
location in the plant or on the factory floor, lag time is minimal, and techniques constantly monitor devices at all levels, particularly at ISA
insights can be delivered faster for better decision-making. 95 levels 1, 2 and 3, which were once air-gapped from the upper levels,
THE NEW OT SYSTEM
EDGE COMPUTING IN

The fourth category takes it one step further and adds control but are now integrated from the sensor to the Cloud. Edge devices
Living on the Edge

functionality. Not unlike SCADA capabilities found in oil & gas, will allow cyber defense within and across IT and OT networks.
utilities, and water and waste, where PLCs, RTUs, and other control
devices are distributed in the field, Edge devices now join the system
to bring new capabilities to operating companies across all industries.

CYBERSECURITY FOR IT/OT

TABLE OF SYSTEMS
CONTENTS

SECTION
1 2 3
Industrial Controller (PLC, DCS, SCADA) & I/0
4 5 6 IT Office PCs, Printers
Hardened PCs & Servers
CONTROL Web/App/Data/eMail Servers
7 8 Industrial Networks
SYSTEMS
SYSTEMS TCP Networks

Manage Manage
Physical OT CLOUD & EDGE NETWORKS IT Information
Processes

Sensors (Temp, Press, etc.) Tablets

Cameras, Scanners, etc. IIoT IoT Smart Phones
Etc.
Embedded Systems (Robots, Analysers, etc)

DEVICES
Section 6

Edge in Service
 Edge in Service
Let’s explore three use cases that illustrate the flexibility and Edge in Data Acquisition and Control
PAGE
adaptability of Edge devices. The fastest-growing segment for Edge devices is their use in
20
acquiring data from the plant, factory floor, field, and along the
1. Edge devices that replace traditional servers supply chain. Here we see a wide gamut of form factors and
2. Edge devices for data acquisition and control in IIoT capabilities depending on the application and industry. These Edge
THE NEW OT SYSTEM
EDGE COMPUTING IN

3. Edge analytics in IIoT devices usually support a variety of device protocols, as well as
Living on the Edge

on-board memory, battery backup, wired communication, such

Edge Devices ‘Edge Out’ Traditional Servers as OPC-UA, or wireless communications, such as Wi-Fi, Radio,
Traditional server technology running Windows or Linux-based Cellular, BlueTooth and Low Power WAN. Some devices also
applications has underpinned SCADA and DCS HMI consoles for feature control capabilities, usually aimed at specific fit-for-purpose
many years. In the past, high availability or even redundant versions functionality rather than a more general controller offering, such
have been limited to hard drive disk mirroring (RAID) or custom as PID algorithms or PLC ladder logic.
hardware solutions. Unfortunately, this does not make the balance of
TABLE OF
CONTENTS the system hardware and operating system fully redundant. Today’s
new Edge computing technologies solve this problem by providing EDGE DEVICES IN THE FIELD AND ON-PREMISE
SECTION
1 2 3 high availability or full redundancy in mini-PC form factors, such that
4 5 6 high performance and space savings are achieved cost-effectively.
7 8 Some manufacturers allow high availability to be upgraded to full
redundancy should availability requirements change. Some Edge
servers are self-managing, requiring little to no administration, post-
installation and commissioning. Set it and forget it… Edge to the rescue.
On-Premise
Internet Edge Server

Wireless Edge
Devices in the Field
 Edge In Service (Cont.)
Edge Analytics in IIoT Edge is particularly important for original equipment and machine
PAGE
Taking the data acquisition and control devices a step further in builders who want to equip their products with functionalities,
21
capability, Edge analytics devices provide onboard programmability, such as remote monitoring and advanced analytics, making them
using languages like Python, such that advanced analytics, e.g., Smart Connected Products. Rather than leave this to the operating
Anomaly Detection and Machine Learning algorithms, can be company or system integrator to implement, the builder can leverage
THE NEW OT SYSTEM
EDGE COMPUTING IN

implemented to provide rapid analysis and insights. Thus, Edge an Edge device with open communication capability, such as OPC-
Living on the Edge

facilitates the layered analytics approach that LNS Research has UA, to implement their custom application. Then post-installation,
identified in the market: the Edge device is only an Ethernet cable away from a connection to
the plant or factory network.
1. Self-Service
2. Systematic
3. Global/Cross-Functional SMART CONNECTED ASSETS
TABLE OF
CONTENTS
Self-service analytics are focused on tools to support problem
SECTION identification and analysis and are usually implemented on-premise
1 2 3 on user desktops or from a shared server with web access. However, ON SECURIT Y
4 5 6 TI
the systematic analytics and global-cross functional are far more likely

RA
7 8

IG U
to use hybrid architectures with at least a portion of their analytics

ONF

DAT
Control

S E T U P A ND C
implemented on-site, making Edge devices the perfect companion

A
hardware. Analytics at the Edge means low latency, improved security,
and cost-effective implementation.

HARDWARE SETUP Mobile Device

& INSTALLATION

Y
VIT
TI
EC
FUNCTIONS NN Gateway to
CO Plant or IoT Network
 Edge In Service (Cont.)
Edge Analytics in IIoT (cont.) Finally, except for Edge devices as stand-alone replacements for
PAGE
Second, the cybersecurity vendors, who also leverage advanced traditional servers, Edge in data acquisition, control, and analytics will
22
analytics, but with a specific fit-for-purpose application for all be part of an IIoT solution that manages the devices and the data
detecting, containing, and recovering from cyberattacks. This allows that flows to and from them. IIoT and analytics providers usually pro-
cybersecurity solutions to be effectively distributed across all levels vide this service, but increasingly we see the hyperscalers entering
THE NEW OT SYSTEM
EDGE COMPUTING IN

of plant and factory operations. Surprisingly, most cybersecurity this very competitive space. While the hyperscalers (e.g., Microsoft,
Living on the Edge

applications are run on standard server hardware that requires
administration and is less than 100% reliable. If cybersecurity is our
sentinel at the gate, why would we want to tolerate any downtime?
Amazon, Alibaba, etc.) may initially lack domain applications, the fact
that they can provide both ends of the hybrid architecture, Cloud
and Edge, with an analytics and data storage platform for developing
applications, is expected to appeal to those organizations that want
to build their own solutions.

TABLE OF
CONTENTS EDGE IN CONTROL AND ANALYTICS
SECTION
1 2 3
4 5 6
CONTROL
7 8
DATA USE CONTROL + ANALYTICS
ANALYTICS

DATA SOURCE Instrumentation Sensors

COMPUTE Automation HYBRID Cloud & On-Premise

ORGANIZATION OT IT
Section 7

Edge in the Market

 Edge in the Market
Now that we have discussed the what, how, and where Edge is used,
PAGE
let’s take a look at its status of adoption. As we can see, the industry is
24
still in the early phases of adoption outside of gateway Edge devices,
with less than 20% implemented and no more than 30% in pilot
stages. Of concern is that nearly half of process industry respondents
THE NEW OT SYSTEM
EDGE COMPUTING IN

reported that they have no plans to implement Edge yet, perhaps

Living on the Edge

indicating that the case to add Edge into the plant data acquisition,
analytics, and control environment has yet to be made. Thus, it would
seem little progress has been made since LNS Research's initial study
in 2018.

EDGE INITIATIVES: Has Your Company Started an Initiative

to Implement and Utilize Edge Computing Platforms?
TABLE OF
CONTENTS 7%
Currently Implemented 14%
SECTION 19%
1 2 3
28%
4 5 6
Pilot Stages 30%
7 8 28%

Process
11%
Budgeted - 1 Year 13% Discrete

25% Batch

7%
Planned - 3 Years 5%
3%

48%
No Plans 39%
25%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

 Edge in the Market (Cont.)
So what is holding Edge back? Between being tied up with other
PAGE
initiatives and budget limitations, Edge has yet to garner significant
25
attention. This situation is further bolstered by the data that show
that respondees have yet to fully define their Edge strategies and
primary reasons for implementing Edge. A second reason is that
THE NEW OT SYSTEM
EDGE COMPUTING IN

most companies have yet to realize the differences and advantages

Living on the Edge

of Edge devices over industrial PCs. Since IT departments typically

look to their major suppliers for Edge computing devices, they find
new product offerings in different form factors, but don’t always see
the new and innovative Edge devices coming to market from OT and
other independent hardware suppliers.

WHY NOT EDGE? Why Has Your Organization

TABLE OF Not Launched or Planned and Edge Program?
CONTENTS

We are busy with 41%

SECTION 15%
existing major IT projects
1 2 3 40%
4 5 6
31%
7 8 Budget Constraints 33%
15%

7%
Lack of understanding 15%
about Edge 25%
Process
Discrete
7%
Batch
Difficulty hiring personnel 6%
for technology partners 0%

14%
Executive team doesn't believe 25%
Edge projects will deliver ROI 15%

0%
Other. Please specify. 6%
5%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

 Edge in the Market (Cont.)
Our research also shows that most companies, regardless of industry In addition, the major Distributed Control Systems (DCS) vendors
PAGE
segment, including OEMs, are still exploring and testing, with few have been slow to incorporate Edge devices into their architectures,
26
corporate-wide roll-outs or adding Edge with analytics to their for concern that they will only speed up the substitution or even dis-
product lines. intermediation of their own hardware with lower cost and lower mar-
gin Edge devices. The primary exception is the very active oil & gas
THE NEW OT SYSTEM
EDGE COMPUTING IN

upstream onshore segment where operating companies are search-

Living on the Edge

DRIVERS FOR EDGE? What is Your Company's Primary ing for alternatives to existing field hardware, much of which is gen-
Driver for Implementing Edge Computing Platforms?
erations old and cannot be upgraded with modern communications,
30% control, analytics, and security capabilities.
Testing new technologies 27%
19%

Gathering IIoT data for new 11%

apps. e.g., Digital Twins, 12%
emissions monitoring, etc. 16%
TABLE OF
CONTENTS
23%
SECTION Supplementing current control 23%
systems capabilities 24%
1 2 3
4 5 6 Exploring the potential 13%
7 8 replacement of current field devices. 11%
e.g., RTUs, PLCs, etc. 10%

Eliminating the need to collect all 2%

high-resolution data through the 11%
control system to the process historian 13%
Process
Discrete
16%
Reducing the response time Batch
9%
latency of applications 14%

5%
Other drivers. Please specify. 6%
4%

0% 5% 10% 15% 20% 25% 30% 35%

Section 8

Recommendations and Resources

 Operating Companies
The lessons from IX Leaders provide a set of guidelines that operating 4. Finally, since leaders have a high degree of commonality
PAGE
companies should follow in adopting new technologies, especially across plants and factories and work to harmonize systems
28
when considering Edge computing and in light of what LNS Research's and, most importantly, data collection across plants, it
data is telling us: follows that Edge solutions should also follow the same guidelines.
Many companies have a variety of control systems solutions
THE NEW OT SYSTEM
EDGE COMPUTING IN

1. The Power of More means that companies should have a across their plants that are not easy to harmonize, nor would
Living on the Edge

larger functional scope, breadth, and focus for Edge because
of its broad applicability. In addition, as is the case for all IX
technologies, funding at the margins or reallocating funds
away from existing initiatives has proven unproductive. Allocate
extra funds to pursue Edge.
make economic sense to do so, until obsolescence forces the
issue. Why repeat the same with Edge? Keeping the types of
Edge devices to a minimum, which are capable of carrying
out multiple missions, is highly desirable.

2. Second, take a top-down and bottom-up approach. While IT

TABLE OF will play a significant role in choosing and deploying Edge
CONTENTS
technologies, leaving the plant or factory management and
SECTION OT personnel out of the equation will impede success.
1 2 3
IT needs to work with the plant, factory, and supply chain
4 5 6
personnel to improve ways of collecting data to drive better
7 8
decision-making, and thus how and where Edge is deployed
and what it should do

3. Closely related to the approach is the focus on business

problems and opportunities to use IIoT and Edge to bridge
data acquisition and processes across silos, rather than just
within silos. OT personnel should consider Edge when planning for
or expanding control and other operational systems, especially with
IIoT beginning to permeate the OT Ecosystem. Now is the
right time to get started. Use your initial business cases to
test Edge computing in your OT environment.
 Original Equipment and Machine Builders
Equipment and machine builders have the opportunity to expand comes to future computing, application, and analytics needs – able
PAGE
their products by adding Edge products for remote monitoring to plug and play into a diverse set of architectures and do it with
29
and diagnostics. While these functions are not new, older designs limited support from IT. For example, avoid Edge devices that tie your
limit their functionality, particularly in handling large volumes of applications with the hardware as this will only lead to higher costs
data and analytics. Edge devices offer a unique platform in which to and limit upgradeability.
THE NEW OT SYSTEM
EDGE COMPUTING IN

consolidate this service, including support for subscription-based Consider the fact that OEM, plant, factory and field IT and OT
Living on the Edge

business models.
Original equipment and machine builders have a plethora of options
to choose from; so like operating companies, those vendors who
offer flexibility, scalability, connectivity, and minimum support,
which can run whatever application, will be your best bet. Given big
goals, small budgets, and an organizational challenge around IT/OT,
personnel are likely already challenged to manage the sheer number
of devices under their purview, especially those that are remote.
The more reliable the Edge device is and the less administration it
requires, the more it will simplify their jobs and lower the overall
Total Cost of Ownership (TCO), even if the Edge device may cost
more initially or some downtime is tolerable. Thus, it pays to do a

TABLE OF
OEM and machine builders need to be flexible and scalable when it thorough TCO evaluation.
CONTENTS

SECTION EDGE IN OEM AND MACHINE BUILDERS

PERFORMANCE DASHBOARD DIGITAL TWIN SAFETY DATA
1 2 3 Cycles Efficiency E-Stop Activations

4 5 6 PERFORMANCE DASHBOARD
22.36%
Machine Guarding Opened

7 8 Cycles Efficiency PERFORMANCE DASHBOARD

Cycles Efficiency
0.994%
Light Curtain Tripped
17.13%
Energy Money

Energy Money
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 Vendors
It is critically essential for vendors to know what markets and
PAGE
applications they are serving, and why, as well as understand their
30
customers' operations, how data is acquired and flows to decision-
makers. These requirements will drive your designs and product line
offerings. Note that converting existing products or renaming them
THE NEW OT SYSTEM
EDGE COMPUTING IN

Edge devices generally will not cut it. Edge devices should be looked at
Living on the Edge

as lean, multi-purpose “swiss knives” able to fit in any architecture in

any location. Given that 90% of Edge devices currently cost between
$500 and $5,000, sales volume will be the name of the game to lower the CHOOSING AN EDGE DEVICE
costs of manufacturing and generate acceptable margins. Specialized
niche players with unique value propositions will also do well.
Edge criteria include but is not limited to:
Remember that IT is in the lead for choosing Edge devices, even
for OT applications, so that they will bring a different perception to
TABLE OF Role/Application
CONTENTS
evaluating Edge devices than OT, i.e., standardization, connectivity,
SECTION scalability, compatibility, manageability, and of course, cost. With the Size and form factor
1 2 3 decoupling of software from hardware and virtualization, vendors Power requirements
4 5 6 should focus on flexibility and adaptability. And expect to meet the
7 8 Enclosure and environmental rating
demands of both IT and OT.
Hazardous area classification

Memory capacity

Programming languages supported

Communication protocols & connectivity

Security

Reliability

Scalability and upgradeability

Administrative requirements
 Summary
As we previously noted, Edge devices come in all shapes and sizes, Nevertheless, LNS Research expects a degree of consolidation
PAGE
from general-purpose to industry and application-specific designs, in the market as vendors realize what designs best serve customers'
31
and Edge vendors range from Big Tech to automation to large and needs, and customers become more aware of what they want in an
small to startups. While the major Cloud vendors can be counted Edge device. Within the next 1-2 years, Ecosystem architectures will
on one hand, counting Edge device vendors begs for centipedes. begin to include Edge devices in their networks. Part of the progress
THE NEW OT SYSTEM
EDGE COMPUTING IN

Overall, market growth is strong, but adoption is still relatively ear- is timed with the opening up of control systems and the OPA initia-
Living on the Edge

ly, particularly for data collection, analytics, and control applications.
Standard designs have yet to fully emerge and scale in volume across
the majority of industries, with discrete leading the way through the
use of the mini-PCs, which are readily adaptable to the factory floor
environment. Who, how, and where they will break through remains
to be seen.
tive. The exception will be in the upstream oil & gas segment where
several startups are battling for position with traditional Big Tech and
automation vendors in this highly diverse market with no clear win-
ner yet in sight.

TABLE OF
What’s next for Edge? Are we still in the hype phase, or have we
CONTENTS
passed? Unlike many other technologies that pass through the hype
SECTION curve, Edge is not a technology that is not understood or that does
1 2 3 not work. Rather, it is a technology that hasn’t fully matured techni-
4 5 6 cally, outside of gateways and servers, nor found its rightful place in
7 8
the new OT Ecosystem. Thus, there is a way to go until we reach the
plateau of productivity.
 Industrial Transformation Resource Guide
Companies use digital technology to drive transformation across the BLOG | How the Right Operational Architecture Powers the Analytics
PAGE
value chain. Use these resources to learn how to align the people, That Matter
32
processes, and technologies required to achieve Operational View Blog
Excellence in your organization.
RESEARCH | Analytics Really Do Matter: Driving Digital
Transformation and the Smart Manufacturing Enterprise
THE NEW OT SYSTEM
EDGE COMPUTING IN

INDUSTRIAL TRANSFORMATION
Living on the Edge

View Research
BLOG | Introducing the Industrial Transformation (IX) Reference
Architecture
FACTORY OF THE FUTURE
View Blog

RESEARCH | Industrial Transformation Success: How to Secure RESEARCH | Factory of the Future: Industrial Transformation is
Operations' Buy-in to Create Effective Leadership Changing How We Run Our Factories
TABLE OF View Research View Research
CONTENTS

SECTION BLOG | Understanding Industrial Transformation: Definition and BLOG | The Factory of the Future and People
1 2 3 Framework for Success View Blog
4 5 6 View Blog
7 8 RESEARCH | Improving Continuous Improvement: Reinvent Lean
RESEARCH | Industrial Transformation: Architecture and Analytics
Today with Digital Technology
Just the Beginning
View Research
View Research
RESEARCH | Forging the Digital Twin in Discrete Manufacturing: A
RESEARCH | Industrial Control Systems and Edge Computing:
Vision for Unity in the Virtual and Real Worlds
Enabling an Operational Architecture for Applications and Analytics
View Research View Research

RESEARCH | MOM and PLM in the IIoT Age: A Cross-Discipline

INDUSTRIAL ANALYTICS Approach to Digital Transformation
View Research
RESEARCH | Build a Flexible Industrial Analytics Strategy for Today
and Tomorrow: Why Business Leaders Should Adopt a Use Case
Approach
View Research
 Industrial Transformation Resource Guide (Cont.)
APM 4.0 RESEARCH | Unify EHS and Quality: Capture Synergies and Turn
PAGE
Policy into Action
33
RESEARCH | APM and Risk Management: A Comprehensive Approach View Research
Beyond Asset Reliability
USE ALL CAPS TITLE HERE ADD

RESEARCH | The Connected Worker: Mobilize and Empower People to

View Research
MORE Title when needed
Use Initial Caps Here for Title

Reduce Risk and Improve Safety

BLOG | APM 4.0 and Risk Management — Industrial Transformation View Research

(IX) Leaders Connect the Dots

View Blog
QUALITY, COMPLIANCE
Solution Selection Guide | Asset Performance Management (Platform
RESEARCH | Quality 4.0 Impact and Strategy Handbook
Vendors), 2018 Edition
View Blog
View Solution Selection Guide
TABLE OF RESEARCH | Driving Operational Performance with Digital Innovation:
CONTENTS RESEARCH | APM 4.0: Prescription for Better Profitability
Connecting Risk, Quality and Safety for Superior Results
SECTION in Operations
View Research
1 2 3 View Research
4 5 6 RESEARCH | Roadmap to Supplier Status: Think Risk Performance,
RESEARCH | The Road to Digital Transformation Success: A
7 8 Not Compliance
Methodology to Modernize Operational Excellence
View Research
View Research

ENVIRONMENT, HEALTH AND SAFETY

RESEARCH | Futureproof EHS Management: Digitally Transform

Safety, Risk, and Environmental Performance for Long-Term Value
View Research

WEBCAST | EHS 4.0: Using Technology to Reach New Levels of Safety

and Environmental Performance
Watch Webcast
 Industrial Transformation Resource Guide (Cont.)

PAGE
34 INDUSTRY FOCUS
AUTOMOTIVE RESEARCH | IATF 16949-2016: A Pivotal Opportunity
USE ALL CAPS TITLE HERE ADD

in Automotive Quality Management

MORE Title when needed
Use Initial Caps Here for Title

View Research

AUTOMOTIVE AND A&D RESEARCH | Manufacturing Performance:

Automotive and A&D Gaining Momentum with Analytics
View Research

LIFE SCIENCES RESEARCH | Digitalized Quality in Life Sciences:

Roadmap to Sustainable Growth and Speeding Profitable, High-Quality
Products to Market
TABLE OF
CONTENTS View Research

SECTION LIFE SCIENCE RESEARCH | Quality 4.0 in Pharmaceutical: Use Cases

1 2 3 and Advantage in a Digitally Maturing Market
4 5 6
View Research
7 8
METALS AND MINING RESEARCH | Data for Balanced Scorecard:
Driving Profits in Mining, Metals, and Materials Industries
View Research

POWER GENERATION RESEARCH | Driving Better Decision Making

with Big Data: A Roadmap for Digital Transformation in the Power
Generation Industry
View Research
EDGE COMPUTING IN THE NEW OT SYSTEM
Living on the Edge

Authors:
Joe Perino
Principal Analyst
joe.perino@lns-global.com

Matthew Littlefield
President & Principal Analyst
matthew.littlefield@lns-global.com

Vivek Murugesan
Research Associate
vivek.murugesan@lns-global.com

Presented by:

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report has been granted to:

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