Retail Industry Sees Business Transformation Through Edge Computing, But Challenges Must be Overcome -- CIO.com Roundtable

Retailers are embracing edge computing to boost agility, enhance decision-making, and deliver a more customer-centric experience. However, they continue to confront challenges in skills, governance, and the scale of computing power necessary to fully realize its benefits. These insights emerged during a recent virtual roundtable hosted by CIO.com and VMware, where industry leaders explored the role of edge computing in driving retail business transformation.

Edge computing is providing real-time data insights and analytics at the store level, allowing retailers to make more informed decisions regarding inventory, demand forecasting, and personalization. By deploying powerful computing hardware directly in stores, rather than relying solely on cloud-based processing, retailers can now analyze data locally and generate insights without sending information back to central data centers.

Retailers are tapping into new data sources—such as video feeds, RFID, IoT sensors, and other connected devices—that offer deeper insights into customer behavior, inventory levels, and operational efficiency. With real-time data analytics, retailers can better forecast demand, optimize inventory, and respond quickly to trends, avoiding stock shortages or surpluses. This capability also allows for personalized product recommendations and offers, enhancing the customer experience from the moment shoppers enter a store.

The importance of processing data locally was highlighted by several roundtable participants, who noted that reduced latency allows for faster, more informed decision-making. In-store operations, such as adjusting staffing, replenishing products, or altering prices, can be carried out more efficiently when data is processed at the edge rather than being sent to the cloud.

However, the sheer volume of data generated at the edge presents challenges. The computational capacity needed to process data from IoT sensors, AI/ML models, and computer vision tools is vast. Executives at the event predicted that more powerful hardware, such as NVIDIA GPU technology, will likely become a staple in retail stores to handle these demands.

Beyond on-premises capacity, issues such as inconsistent architecture and governance further complicate edge computing deployment. The differing approaches among retailers, vendors, and partners create obstacles for scaling and integrating edge solutions. Industry leaders agreed that retailers must rethink their IT infrastructure and operational models to accommodate this shift.

Chas, an executive from VMware, emphasized the need for retailers to consolidate and centralize the management of edge compute resources. A unified "platform as a product" approach, rather than a proliferation of siloed solutions, will likely be the path forward for many.

Security and risk management also loom large, as more sensitive data and critical applications operate outside traditional data centers. Ryan, another participant, stressed that integrating edge computing into enterprise-wide zero-trust security models will be crucial to protect customer data and safeguard operations.

Despite these challenges, edge computing is seen as a key enabler for retail's transformation, promising to deliver a more responsive, data-driven shopping experience. However, industry leaders recognize that success will require overcoming significant technological and operational hurdles.