Grow your business with Edge Computing: How APC by Schneider Electric ensures success

Edge Computing is opening up new opportunities for partners who look at a client’s bigger picture, according to global leader in IT infrastructure, power and cooling, APC by Schneider Electric.

Edge Computing is the most important emerging trend in hybrid IT architecture looking to 2020, with strong demand from clients in education, retail, healthcare, telco, commercial buildings and government, in particular.

The company is uniquely qualified to spot IT infrastructure trends: APC has been around since 1981, the same year the first IBM PC was released to market. Three electronic power engineers from MIT started the company in a garage, and it has grown into a global market leader providing physical IT, power, and cooling infrastructure globally ever since.

Schneider Electric’s Pacific Zone Vice President for Secure Power, Joe Craparotta, says while many organisations have now experienced some of the benefits of cloud migration, achieving the next level of benefit from digital transformation requires higher system performance and reliability than cloud alone can provide – this is where Edge Computing can deliver.

Edge Computing is the architecture bringing elements of compute, storage and manageability for critical applications as close as required to the the point of processing to support the ever-changing digital landscape.

The new generation of applications are demanding reduced network latency and the ability to rapidly process very large volumes of data. Emerging 5G technology will also depend on very low latency underlying fixed line infrastructure to match its wireless speed.

To support application capability growth and maintain an increasingly critical edge over competitors, businesses must build resiliency through a collaborative Hybrid IT ecosystem, with a proper balance of cloud and edge.

According to Craparotta, Edge Computing enables three key areas:

  1. 1. High system availability:

    Systems located close to the user will continue to operate regardless of whether a WAN or internet connection is performing well. APC’s high density MicroDC systems allow Edge Computing deployments to keep running smoothly even when there are brief or extended power interruptions.
  2. 2. Fast local processing:

    Increasingly, building sensors and IoT devices are generating mountains of data. Much of the heavy duty processing can be offloaded to cloud data centers, but where insights are needed rapidly to allow building systems to respond to local situations – security via facial recognition for example – Edge Computing allows time sensitive data to be processed without WAN latency.
  3. 3. Cost efficient use of space:

    Rebuilding on-premises data centres in premium real estate that is not Edge-ready can sometimes be a costly exercise. This is especially the case where there are intensive cooling requirements for the high density compute environment in the data centre. However, many organisations have spare cupboards or floor space throughout their buildings where Edge Computing ‘micro data centres’ can more easily be deployed. APC’s proprietary technologies allow a similar level of repeat deployability and manageability as in datacentres.

The industry agrees

The cost of unplanned downtime

$5,600 per minute

The cost of unplanned IT outages according to Gartner
Read more

$148 million

The cost of reimbursements paid by British Airways to passengers after a power system in a datacentre failed, causing all flights out of London Heathrow and Gatwick airports to be cancelled and 75,000 passengers disrupted
Read more

$180,000

Average cost of a single incident of downtime in a surface mine
Read more

$200,000

Average cost to repair reputational brand damage for a large enterprise
Read more

Industry analyst Gartner’s forecast supports APC’s observations, showing Edge Computing as among the top 10 most important strategic technology trends that CIOs should consider when developing their IT roadmap.

A March 2018 report from Grand View Research predicts the global Edge Computing market will hit $3.24 billion by 2025, with a “phenomenal” compound annual growth rate (CAGR) of 41 per cent.

Dell, a key APC partner, has worked with the industry to develop a vision for Edge Computing it calls ‘fog computing’, describing a methodology of deploying compute resources on-LAN, including the mesh of Internet of Things (IoT) devices proliferating across buildings and campuses.

The Open Fog vision – now an IEEE standard – sees the data being constantly collected by these devices and rapidly analysed locally. Results will then be transmitted to other systems at wire speed, but heavier-weight trend analysis will be offloaded to the cloud.

The world’s leading Cloud providers, Microsoft and Amazon Web Services (AWS) have bought into this vision, releasing on-premises and edge-ready platforms in Microsoft Azure Stack and Amazon Outpost. Both recognise the need to support businesses in the cloud and at the Edge.

What’s driving the demand?

Latency < 7 ms latency is needed for high performance applications
Interactivity IoT systems collaborating with each other, staff collaborating with each other and a need for very responsive local systems
Autonomy Company tools and processes that can self-organise, auto-discover, react and make decisions autonomously
Data bandwidth Massive data collection and processing simply isn’t feasible to be constantly transferring to and from cloud
Privacy/security The need to keep personal, sensitive data on-premises to mitigate security risk, and comply with regulations.

Source: adapted from Gartner (The Future Shape of Edge Computing: Five Imperatives, June 2018)

Data-driven decision making with AI predictive logic is becoming a priority for most businesses, as are smart spaces in buildings that recognise who is in them and configure themselves accordingly for better occupancy efficiency and staff satisfaction. Immersive augmented/virtual/mixed reality experiences are also in the mix with demanding infrastructure requirements.

A common theme between these trends is large amounts of data being generated locally and a need for very fast system performance. For fog computing, especially where arrays of sensors are supporting VR/AR/MR, applications benefit from network transmission delay (latency) of less than 1ms. That’s a practical impossibility with cloud-only architecture which necessarily has to traverse longer WAN links, out to the internet and back.

These technical requirements underpin very human needs which shape customer purchasing habits, APC General Manager, Joseph Vijay, says.

“Every one of us is now looking for personalised experiences in every context. Whether in education or retail, we have gone from segmenting markets into male/female, age groups, backgrounds, to individually targeted profiles and experiences on a per-person basis,” he says.

“This level of extreme targeting makes experiences – whether in retail or education – much more relevant and once we get a taste of that we want it everywhere.

“If we can’t get it from a supplier, we move on to one who can.”

These demands can be catered for through Edge Computing deployments that provide very fast compute resources with low network latency, but with the repeat deployability and manageability of datacentre environments.

The challenge for clients

Edge Computing offers distinct benefits – super low latency between the system and the user, absolute control of the environment, and uptime protection against internet outages.

However, it also presents a new set of challenges for IT. The high uptime businesses have become accustomed to in tier 4 datacentres – 99.995% availability – equates to just 26 minutes of downtime per year. But Edge Computing deployments are unlikely to be anywhere near that without careful planning. Even a single percentage point drop equates to 3.65 days of downtime per year – a serious risk to continuity of systems.

Edge Computing deployments need to be remotely manageable, both logically and physically secure, rapidly and repeatedly deployable, and most of all, reliable – including having stable power sources that won’t go down when a contractor is working on the lifts and trips a circuit breaker.

When your clients choose a power and automation vendor to support an Edge Computing deployment, as an APC partner you can advise them of your and APC’s deep understanding of IT requirements, and that they’re not just buying from another UPS vendor. APC’s training and enablement programs are available to all channel partners, to allow upskilling to maximise the sales opportunity.

APC by Schneider Electric was borne out of IT and provides a powerful set of capabilities to CIOs and their IT organisation with a single pane of glass view of all systems and unparalleled integration with automation tools.

Shaping the conversation with clients

The key to selling Edge Computing, according to Jamie Corrigan, our NZ APC Partner Development Manager is to ensure you look at the client’s bigger picture.

“Edge Computing is part of a broader digital hybrid IT strategy, which includes Cloud,” he says.

Corrigan recommends when talking to customers not to simply ask product-focused questions but rather probe for the wider picture, such as:

  • Where are you generating data?
  • What are you using it for?
  • How are you being accountable for that data complying with regulations?
  • How are you securing that data?
  • How are you doing the data governance?
  • How are you visualising the data and making decisions on it?
  • Are you doing it efficiently?

“From those questions, the kit you recommend to the client will become self-evident. If you find out a client’s system is generating 2GB of data per hour and it’s personally identifying sensitive information, that will make clear whether the data needs to go all the way to the cloud or whether it would be better served by edge,” he says.

Corrigan provides the example of a client who wants a quote on five replacement UPS devices. Selling those products alone might be a $13,000 opportunity taking into account the UPS,management cards and extended warranty.

But by assisting the customer with a broader survey of their environment, you may discover they have no centralised management and asset reporting. Recommending EcoStruxure IT Expert could give the client a single pane of glass view with proactive monitoring. That’s $20,000 of software licenses which can also be billed on an annuity basis at $2000 per year.

The customer may find that once they have proactive monitoring, the number of alerts about issues they were unaware of is something they would prefer somebody else to handle. For instance, add EcoStruxure Asset Advisor and APC will do the remote monitoring for them and contact them by phone or app-based chat to recommend actions and then deliver them. That’s another $3650 per year of annuity revenue.

You might discover other devices which don’t have an extended warranty – another nearly $3000 in potential revenue.

In this example, what started as a single sales opportunity can grow to a full service package which may be up to seven times higher than the original quote, and a much better outcome for the customer, with a clear view of assets, lower risk position and proactive monitoring and action.

“One APC client, a local council, estimates the cost of IT downtime at $150,000 per day,” Corrigan says. “So in contrast to that cost, the investment in preventative strategies is small by comparison.”

APC by Schneider has an easy-to-use, extensive training program for partners to prepare them for having the Edge Computing discovery and sales conversation with clients.

Learn how to develop Edge Computing opportunities with clients.

Bringing reliability to immersive education

It’s not just the corporate world that’s taking advantage of the benefits of Edge Computing. The university lecture theatre of past decades is rapidly becoming obsolete. Educational institutions are embracing the challenge of delivering education in a more engaging, immersive way, anytime, anywhere.

Universities are providing courses to global audiences online through video conferencing, virtual reality applications, multi-team collaborations across diverse locations, and through mobile devices.

“In workplaces we talk about flexible working, but this is just as important in education,” APC by Schneider New Zealand business manager, Jason Molloy, says.

“Students may attend university twice a week for physical lectures, but stream the lectures the other three days. And all through the week they’re interacting with the university and their peers online.”

“Technology is proving to be a great enabler for working differently in education.”

According to Molloy, universities’ large campuses mean they can easily fit in Edge Computing micro datacentres.

“They may not have the space for a whole new datacentre, but there will often be plenty of nooks and crannies to accommodate a locked cabinet of equipment – perfect for an Edge Computing ‘micro datacentre’ deployment,” he says.

Providing reliable power, security and remote manageability are key challenges, which an IT-focused power and automation vendor such as APC by Schneider Electric can allow your clients to deliver smoothly and at the right pace.

Success Story: Murdoch University

Murdoch University’s School of Engineering and IT wanted to deliver an immersive learning experience for students, available 24 hours a day, providing a learning environment that would emulate best-in-class production IT infrastructure. This capability would allow the school to stand out amongst other institutions in Western Australia.

Digital transformation of healthcare

Healthcare is not an industry that embraces “disruption” as much as other industries. The slower pace of digital transformation in health is for good reason – uninterrupted, people-focused patient care is the priority, with no room for mistakes, necessitating a cautious approach to change.

But that doesn’t mean health isn’t changing – and in fact, with the looming challenge of an ageing population stressing healthcare resources, it’s becoming pressing to find more efficient ways of working.

Statistics New Zealand recently reported that the number of people over 80 years old – by far the most expensive segment of the population from a healthcare perspective – will more than double in the next 30 years.

There is pressure for healthcare to catch up with other segments that are reaping the benefits of digital transformation. Having the right design for critical infrastructure has never been more important.

Sunshine Coast Hospital in Queensland has begun using robots to dispense medications in its pharmacy while another type of robot transports food, waste and laundry throughout the hospital’s kilometres of service corridors. This kind of innovative thinking allows operational expenditure previously committed to administrative and orderly tasks to be redirected to direct patient care.

It’s not just frontline healthcare that is increasingly relying on digital technology: Imaging systems are now fully digital in most centres; doctors retrieve patient imaging all over the hospital campus and from home. Many providers are now using contract radiologists around the world to interpret scans, allowing the workload to ‘chase the sun’. While these systems have global reach, local performance is extremely important – slow system response times directly equate to lower patient care throughput.

The costs of IT outages in healthcare are staggering. A major hospital, Auckland City Hospital, spent more than $109,000 per hour in staffing costs in FY18. When staff work more slowly than usual, as they are forced to revert to increasingly unfamiliar manual processes, patient queues increase sharply. And, as more staff are brought in to cope with the backlog, budgets are likely to come under pressure.

“In New Zealand, our district health services are highly digital,” says APC by Schneider New Zealand reseller program manager, Jamie Corrigan, says.

“This means that we can deliver responsive healthcare based on current information, without having to rely on paper files being retrieved.

“Now that our health services are used to the fast response times digital information systems can provide, they rely heavily on reliable and predictable system performance. Peoples’ lives literally depend on it.

“That’s why health services look to APC by Schneider – our national network of experts are able to assist quickly with any system issues that may arise.”

Success Story: Boehringer Ingelheim

When one of the world’s leading pharmaceutical companies needed to consolidate three Australian offices to one, it it consulted APC on how best to deploy a high performance Edge Computing environment.

Read how Boehringer Ingelheim and APC by Schneider Computing consolidated five server racks down to two with greater control and resilience.

Success Story: Mainfreight

Logistics giant, Mainfreight, started life as a Kiwi trucking company. So how did it become a global logistics platform?

Mainfreight Group IT infrastructure manager, David Hall, says, “The decisions we make today shape the future and growth of our company. 40 years ago, we were just a tracking company and we’ve grown to have warehouses all around the world.”

“Schneider Electric has provided our datacentre solutions and the ongoing management and support of those solutions and our data centres globally – the EcoStruxure solution provides us with the necessary smarts to run our core infrastructure out of New Zealand.

“To accommodate where we see our business moving with the demands on data storage and analytics, we’ve constructed a new datacentre here in New Zealand.

“The key reasons why we chose the Ecostruxure solution are its ability to grow as we grow, the ability for us to add more batteries to the UPS, the ability for us to expand our power and pooling, and the software smarts to give us that management and monitoring that we needed.

“Mainfreight’s had a partnership with Schneider Electric for 10 years now. In terms of our vision, Schneider will play a key part in the ongoing growth of Mainfreight.

APC by Schneider Electric helped Mainfreight build and optimise its IT infrastructure, starting with a small data centre and expanding to a platform that includes virtual reality facilities, voice controlled warehouse picking technology, managed uninterruptable power supplies for service continuity and technology to support electronic data interchange (EDI) and digital processes across the board.

Read how APC by Schneider Electric helped Mainfreight become one of the globe’s most seamless logistics platforms.

The clash between digital transformation and the power economy

The power economy is rapidly rising to be as important as digital transformation itself, as power costs continue to rise across Australia. Many corporate sites are dealing with consistently rising power prices every year.

There are many layers that need to be considered when tackling power costs including grid power supplier contracts, renewable energy options (both remote and on-site), energy efficiency of appliances, and automation to minimise power utilisation when appropriate, according to Schneider Electric vice-president – IT business, strategic customers and segments, Joe Craparotta.

“APC’s association with its parent company, Schneider Electric, gives it insight into the power efficiency of tens of thousands of different specific device combinations, to help advise on the lowest power consumption solutions overall,” he says.

“For example, APC can help you understand the impact of allowing IT air conditioning temperatures to rise slightly, and what this will mean for energy consumption contrasted with appliance efficiency and reliability. APC can also help your clients’ IT teams select the most power efficient combination of appliances for different use cases.

“Where power grid reliability is suboptimal, APC can advise on multi-layered power continuity strategies. This is especially important given the frequency of extreme weather events, intense development in city areas, and once-in-a-generation changes to baseload power generation, which continue to challenge power stability.”

APC by Schneider Electric: Power borne out of IT

Since its establishment in 1981 by three engineers from Massachusetts Institute of Technology, APC has been IT-first. This means it understands the IT world, who the vendors are, how they interface, and what goes into infrastructure design decisions and how Edge Computing has an advantage.

APC by Schneider Electric is part of shaping the future of IT strategy, with a full set of infrastructure, monitoring and management tools that integrate tightly with IT.

APC software is not only able to predict the life cycle of APC’s own devices, but also of other vendors’ IT infrastructure, including servers, storage and networking appliances. This is because it gathers real-life data from clients all around the world, allowing this data to be analysed to accurately predict failure of different specific models of equipment in your environment.

As such, APC clients can be confident about using their appliances for longer and replacing them just before they fail, rather than performing calendarised, non-targeted preventative maintenance.

All of these IT capabilities mean partnering with APC by Schneider Electric can help customers make richer business and technology decisions.

Finally, APC by Schneider Electric’s channel partners are its super power – in the Pacific region, APC by Schneider Electric has more than 4000 IT resellers, more than 1000 system integrators, and 34,000 electricians. This scale empowers clients to get support on demand from experts accredited in specific niches without delay.

Optimise your Edge Computing deployments

  • Why Cloud Computing is Requiring us to Rethink Resiliency at the Edge

  • IoT and Edge Computing Create Channel Partner Opportunities

  • The Decentralization of Higher Education IT Spending is Now Underway and “Big Data” is the Reason

  • What Digital Transformation Means to IT Solution Providers

  • Key Imperatives for Edge Computing Infrastructure: Local Edge Part 2

  • How Edge Computing in Healthcare is Transforming IoT Implementation