Stratus LNS Report Edge Computing New Ecosystem - Whitepaper

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Living on the Edge

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EDGE COMPUTING IN THE NEW OT ECOSYSTEM

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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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Section 1

Executive Summary

Executive Summary Edge computing is one of today's leading disruptive digital PAGE

4

THE EDGE COMPUTING WORLD

technologies. Until recently, it was overshadowed by the Cloud with its power, scalability, and as-a-service platform capabilities.

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EDGE COMPUTING IN THE NEW OT SYSTEM

However, there is an increasing realization that both have their place in the Industrial Internet of Things (IIoT) environment and that Edge offers a number of capabilities and advantages that make it a key player in the new Operational Technology (OT) Ecosystem, as

Connected Airplanes Connected Oil Platforms

TRANSACTIONAL ANALYTICS

well as in evolving Operational Architectures. This study builds on LNS Research's 2018 report: Enabling an Operational Architecture

REAL-TIME ANALYTICS

Edge Gateway Server

Smart Streetlights

Connected Appliances

BUSINESS INTELLIGENCE 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

CONTENTS

market, plus recommendations on selection criteria and guidelines

SECTION

on applications, with expected benefits. As we shall see, perhaps

1 2 3 4 5 6 7 8

no other disruptive technology comes in so many different sizes and formats with its metamorphic ability to complement or replace existing hardware, or constitute an entirely new system, as well as support new capabilities, such as analytics at the Edge.

DATA CENTER/CLOUD

Edge Gateway Server

Edge Gateway Server

LATENCY NOT AN ISSUE Connected Rail Systems

MEDIUM LATENCY REQUIREMENTS

Smart Grids Mobile Devices

Smart Buildings

LOW LATENCY REQUIREMENTS Connected Trucks

Connected Cars

Edge Gateway Server

Section 2

Demographics

Survey Responses LNS Research executed a global survey on the state of Industrial PAGE

6

Transformation (IX) programs and related use cases. We surveyed

11%

executives, management, IT, engineering, quality, and operations

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EDGE COMPUTING IN THE NEW OT SYSTEM

personnel across a wide range of industries and geographies. The

15%

survey had more than 300 respondents across the process, batch/ hybrid, and discrete industries. Questions on analytics, Edge computing, and cybersecurity were included in the survey.

30% 1%

5% 9%

33%

TABLE OF

CONTENTS

29% 48%

49%

SECTION

1 2 3 4 5 6 7 8

36%

37%

31%

GEOGRAPHIC DISTRIBUTION North America Europe Asia/Pacific Rest of the World

COMPANY REVENUE BY SIZE

22%

INDUSTRY TYPE

Small: Less than $250 Million

Discrete Manufacturing

Medium: $250 Million to $1 Billion

Process Manufacturing

Large: More than $1 Billion

Batch Manufacturing Others

Survey Responses (Cont.)

PAGE

7

JOB TITLE

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EDGE COMPUTING IN THE NEW OT SYSTEM

4%

President

0%

SECTION

Information Technology

44%

9%

CxO

AREA OF RESPONSIBILITY

1 2 3 4 5 6 7 8

12%

Vice President (VP / SVP / EVP)

TABLE OF

15%

24%

Director

CONTENTS

11%

51%

Manager

10%

20%

30%

40%

50%

60%

35% 24%

Operations

13%

Engineering

9%

Quality 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%

30%

Section 3

Edge in the New OT Ecosystem

Edge in the New OT Ecosystem Today's leading disruptive digital technologies are having a PAGE

9

significant impact on the traditional Operational technology (OT) system architecture which, for years now, is based on the 1990s

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EDGE COMPUTING IN THE NEW OT SYSTEM

Purdue Enterprise Reference Architecture model embodied in the ISA 95 standard. With the advent of the Cloud, big data, advanced analytics, including artificial intelligence (AI) and Machine Learning (ML), and low-cost computing, these Information Technologies have migrated into the OT environment to stay.

THE NEW OT ECOSYSTEM Business Transactional Computing Platforms

= DIGITAL TWIN

TABLE OF

CONTENTS

Internal OT Platform

SECTION

1 2 3 4 5 6 7 8

Advanced Computing Platform

Historian

LIMS

I/F

I/F

Human Machine Interface

I/F

External 3rd Party OT Platform

Cyber Threat Monitor

I/F

I/F

I/F

Field Networks

Safety Systems

Electrical Systems

CONNECTIVITY BUS

Analyzers

Controllers

Wired I/O

Wired Edge Devices

Connected Worker

Machinery Monitoring

Wireless Sensors

Wireless Edge Devices

Edge in the New OT Ecosystem (Cont.)

The result is that data can now be acquired from anywhere on the PAGE

10

factory floor and across the supply chain, and computing capability can take place almost anywhere between the on-premise corporate

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EDGE COMPUTING IN THE NEW OT SYSTEM

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 where computing takes place anywhere outside of the corporate 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?

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SECTION

a) Computing outside of the IT data center, nearer the data source

1 2 3 4 5 6 7 8

b) Computing at, on, or integral to the field device or equipment

21%

25% 28% 25% 25% 32% 30% 31%

Both a) and b)

27% Process Discrete

Neither a) or b)

23%

14%

Batch

11%

Other. Please specify:

2% 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

11

no longer limited to flowing through the control system, be it a Distributed Control System (DCS) or a Programmable Logic

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Controller (PLC). In addition, with the dawn of wireless technologies such as Wi-Fi and cellular communications, e.g., 4G and now 5G, many Edge devices will be wireless. No matter which definition, 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 4 5 6 7 8

in particular, microservice architectures, communications protocols, and programming languages such as Python and Java, in addition to 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

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13

multiple ways in the IIoT environment: 1.

Traditional IT networking and computing devices

2.

Derived computing platforms

3.

Board level platforms

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

TABLE OF

changed.

CONTENTS

SECTION

1 2 3 4 5 6 7 8

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

38%

Dell EMC

45% 42% 20% 18%

HPE

27%

31%

Intel

38% 41% Process Discrete

44%

Cisco

Batch

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

14

derived from standard hardware but modified for industrial use with special capabilities such as advanced graphics, built-in Wi-Fi, high

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availability and redundancy, hardened environmental enclosures, and other features. To date, most of the installed base to date of standard mini-PCs is in the batch/hybrid and discrete industries, 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%

6%

Stratus

9%

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CONTENTS

SECTION

1 2 3 4 5 6 7 8

3%

Raspberry PI or equivalent single-board computer

6% 8% Process

0%

Opto 22

1%

Discrete Batch

3%

Advantech

3% 2% 6% 10%

Other. Please specify:

6% 4%

0% 1% 2% 3% 4% 5% 6% 7% 8% 9% 10%

Edge Forms and Types (Cont.)

PAGE

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15

The third group includes board-level computing platforms,

The last major category includes Edge devices from control

typically running Linux or micro-services, a good example of which

systems vendors, both major DCS vendors, as well as smaller

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

application programmability, wireless communications, and battery

interfaces (HMIs), and applications for a customizable solution. As

backup all in one device.

traditional control systems “open up,” we have begun to see more

SAMPLING OF EDGE DEVICES FOR UPSTREAM OIL & GAS

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 separate category, only to say that Edge capabilities can be added to

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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 PAGE

17

In addition to Edge device location, Edge devices can also be

The second use category is data acquisition. Edge devices, along

categorized by the role they play in the operational architecture. LNS

with lower-cost sensors, are used to collect additional data from and

Research sees five primary roles for Edge devices:

around equipment, machines, and processes. The data is usually

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EDGE COMPUTING IN THE NEW OT SYSTEM

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,

2. Data Acquisition

to a control system, to a historian, or to an advanced computing

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

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networks and devices.

CONTENTS

SECTION

1 2 3 4 5 6 7 8

THE NEW OPERATIONAL ARCHITECTURE ERP Suite

OPERATIONAL DATA LAKE

IX Applications Quality 4.0 EHS 4.0 Connected Worker

Digital Twins

CRM

HCM

BI Tools

SCM

ENTERPRISE DATA LAKE

APP APP

Data Cleansing, Aggregation and Compaction SCM

EAM

ENGR/ PLM

Data Historian

MES/ MOM

Structured Data

Time Series Data

Sensors

Market

Weather

GIS

Social

Unstructured Data

Data Connectivity, Data Model, and Persistance

Suppliers IIoT/Edge

IIoT/ Edge

Instrumentation, Actuation, and Controls

Factory Floor

Process

Customers IIoT/Edge

Remote Connectivity

Edge in Operational Architecture (Cont.)

PAGE

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18

The third category combines data acquisition with analytics at the

LNS recognizes a fifth category, cybersecurity. While the majority

Edge. In this case, the Edge device may consume a smaller set of the

of current cybersecurity software runs on standard servers, LNS sees

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 fourth category takes it one step further and adds control functionality. Not unlike SCADA capabilities found in oil & gas,

but are now integrated from the sensor to the Cloud. Edge devices 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

SYSTEMS

TABLE OF

CONTENTS

SECTION

1 2 3 4 5 6 7 8

Industrial Controller (PLC, DCS, SCADA) & I/0 Hardened PCs & Servers Industrial Networks

Manage Physical Processes

OT

Sensors (Temp, Press, etc.)

Cameras, Scanners, etc.

Embedded Systems (Robots, Analysers, etc)

IT SYSTEMS

CONTROL SYSTEMS

CLOUD & EDGE NETWORKS

IIoT

IoT

DEVICES

Office PCs, Printers Web/App/Data/eMail Servers TCP Networks

Manage

IT Information

Tablets Smart Phones Etc.

Section 6

Edge in Service

Edge in Service PAGE

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TABLE OF

Let’s explore three use cases that illustrate the flexibility and

Edge in Data Acquisition and Control

adaptability of Edge devices.

The fastest-growing segment for Edge devices is their use in 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

3. Edge analytics in IIoT

devices usually support a variety of device protocols, as well as

Edge Devices ‘Edge Out’ Traditional Servers

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

CONTENTS

the system hardware and operating system fully redundant. Today’s

SECTION

new Edge computing technologies solve this problem by providing

1 2 3 4 5 6 7 8

high availability or full redundancy in mini-PC form factors, such that

EDGE DEVICES IN THE FIELD AND ON-PREMISE

high performance and space savings are achieved cost-effectively.

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, postinstallation and commissioning. Set it and forget it… Edge to the rescue.

Internet

Wireless Edge Devices in the Field

On-Premise Edge Server

Edge In Service (Cont.)

PAGE

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21

Edge Analytics in IIoT

Edge is particularly important for original equipment and machine

Taking the data acquisition and control devices a step further in

builders who want to equip their products with functionalities,

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

implemented to provide rapid analysis and insights. Thus, Edge

an Edge device with open communication capability, such as OPC-

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

SECURIT Y Control

Mobile Device

HARDWARE SETUP & INSTALLATION

Y

and cost-effective implementation.

ON

IG U

ONF

implemented on-site, making Edge devices the perfect companion hardware. Analytics at the Edge means low latency, improved security,

TI

A DAT

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

S E T U P A ND C

the systematic analytics and global-cross functional are far more likely

RA

on user desktops or from a shared server with web access. However,

VIT

identification and analysis and are usually implemented on-premise

1 2 3 4 5 6 7 8

TI

Self-service analytics are focused on tools to support problem

SECTION

EC

CONTENTS

FUNCTIONS

CO

NN

Gateway to Plant or IoT Network

Edge In Service (Cont.)

PAGE

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22

TABLE OF

CONTENTS

Edge Analytics in IIoT (cont.)

Finally, except for Edge devices as stand-alone replacements for

Second, the cybersecurity vendors, who also leverage advanced

traditional servers, Edge in data acquisition, control, and analytics will

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

of plant and factory operations. Surprisingly, most cybersecurity

this very competitive space. While the hyperscalers (e.g., Microsoft,

applications are run on standard server hardware that requires

Amazon, Alibaba, etc.) may initially lack domain applications, the fact

administration and is less than 100% reliable. If cybersecurity is our

that they can provide both ends of the hybrid architecture, Cloud

sentinel at the gate, why would we want to tolerate any downtime?

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.

EDGE IN CONTROL AND ANALYTICS

SECTION

1 2 3 4 5 6 7 8

DATA USE

CONTROL

CONTROL + ANALYTICS

DATA SOURCE Instrumentation COMPUTE ORGANIZATION

Automation OT

ANALYTICS

Sensors

HYBRID

Cloud & On-Premise 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

24

let’s take a look at its status of adoption. As we can see, the industry is still in the early phases of adoption outside of gateway Edge devices,

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EDGE COMPUTING IN THE NEW OT SYSTEM

with less than 20% implemented and no more than 30% in pilot stages. Of concern is that nearly half of process industry respondents reported that they have no plans to implement Edge yet, perhaps 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

7%

CONTENTS

SECTION

1 2 3 4 5 6 7 8

14%

Currently Implemented

19% 28% 30% 28%

Pilot Stages

Process

11%

Budgeted - 1 Year

Discrete

13%

Batch

25% 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

25

initiatives and budget limitations, Edge has yet to garner significant attention. This situation is further bolstered by the data that show

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EDGE COMPUTING IN THE NEW OT SYSTEM

that respondees have yet to fully define their Edge strategies and primary reasons for implementing Edge. A second reason is that most companies have yet to realize the differences and advantages 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 Not Launched or Planned and Edge Program?

TABLE OF

CONTENTS

SECTION

1 2 3 4 5 6 7 8

We are busy with existing major IT projects

41%

15%

40% 31% 33%

Budget Constraints 15% 7%

Lack of understanding about Edge

Difficulty hiring personnel for technology partners

25%

Process Discrete

7%

Batch

6% 0% 14%

Executive team doesn't believe Edge projects will deliver ROI

Other. Please specify.

15%

25%

15% 0% 6% 5%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Edge in the Market (Cont.)

PAGE

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26

TABLE OF

Our research also shows that most companies, regardless of industry

In addition, the major Distributed Control Systems (DCS) vendors

segment, including OEMs, are still exploring and testing, with few

have been slow to incorporate Edge devices into their architectures,

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 margin Edge devices. The primary exception is the very active oil & gas upstream onshore segment where operating companies are search-

DRIVERS FOR EDGE? What is Your Company's Primary Driver for Implementing Edge Computing Platforms?

ing for alternatives to existing field hardware, much of which is generations old and cannot be upgraded with modern communications, control, analytics, and security capabilities.

30% 27%

Testing new technologies 19%

Gathering IIoT data for new apps. e.g., Digital Twins, emissions monitoring, etc.

11% 12% 16%

CONTENTS

SECTION

1 2 3 4 5 6 7 8

23% 23% 24%

Supplementing current control systems capabilities Exploring the potential replacement of current field devices. e.g., RTUs, PLCs, etc.

13% 11% 10% 2%

Eliminating the need to collect all high-resolution data through the control system to the process historian

11% 13% Process Discrete

16%

Reducing the response time latency of applications

9%

Batch

14%

5% 6% 4%

Other drivers. Please specify.

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 PAGE

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28

4.

Finally, since leaders have a high degree of commonality

companies should follow in adopting new technologies, especially

across plants and factories and work to harmonize systems

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

1.

The Power of More means that companies should have a

across their plants that are not easy to harmonize, nor would

larger functional scope, breadth, and focus for Edge because

make economic sense to do so, until obsolescence forces the

of its broad applicability. In addition, as is the case for all IX

issue. Why repeat the same with Edge? Keeping the types of

technologies, funding at the margins or reallocating funds

Edge devices to a minimum, which are capable of carrying

away from existing initiatives has proven unproductive. Allocate

out multiple missions, is highly desirable.

extra funds to pursue Edge.

2.

Second, take a top-down and bottom-up approach. While IT will play a significant role in choosing and deploying Edge

TABLE OF

CONTENTS

technologies, leaving the plant or factory management and

SECTION

OT personnel out of the equation will impede success.

1 2 3 4 5 6 7 8

IT needs to work with the plant, factory, and supply chain personnel to improve ways of collecting data to drive better 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 PAGE

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TABLE OF

Equipment and machine builders have the opportunity to expand

comes to future computing, application, and analytics needs – able

their products by adding Edge products for remote monitoring

to plug and play into a diverse set of architectures and do it with

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.

consolidate this service, including support for subscription-based

Consider the fact that OEM, plant, factory and field IT and OT

business models.

personnel are likely already challenged to manage the sheer number

Original equipment and machine builders have a plethora of options

of devices under their purview, especially those that are remote.

to choose from; so like operating companies, those vendors who

The more reliable the Edge device is and the less administration it

offer flexibility, scalability, connectivity, and minimum support,

requires, the more it will simplify their jobs and lower the overall

which can run whatever application, will be your best bet. Given big

Total Cost of Ownership (TCO), even if the Edge device may cost

goals, small budgets, and an organizational challenge around IT/OT,

more initially or some downtime is tolerable. Thus, it pays to do a

OEM and machine builders need to be flexible and scalable when it

thorough TCO evaluation.

CONTENTS

SECTION

1 2 3 4 5 6 7 8

EDGE IN OEM AND MACHINE BUILDERS PERFORMANCE DASHBOARD Cycles

DIGITAL TWIN SAFETY DATA

Efficiency

E-Stop Activations

22.36%

PERFORMANCE DASHBOARD Cycles

Machine Guarding Opened

0.994%

PERFORMANCE DASHBOARD

Efficiency

Cycles

Light Curtain Tripped

Efficiency

Energy

Energy

Energy

Money

$ 0100010111011000100101

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10110111010010010001

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0100010111011000100101

0100010111011000100101 010010001

17.13%

Money

$

Money

$

0100010111011000100101

010010001 0100010111011000100101

0100010111011000100101 0100010111011000100101 010010001 0100010111011000100101 0100010111011000100101 0100010111011000100101 0100010111011000100101 0100010111011000100101 0100010111011000100101 10110111010010010001

010010001

10110111010010010001

010010001

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010010001

10110111010010010001 010010001

10110111010010010001

10110111010010010001

0100010111011000100101

0100010111011000100101 010010001

10110111010010010001

010010001

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0100010111011000100101 10110111010010010001 010010001

10110111010010010001

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0100010111011000100101

0100010111011000100101 010010001

Vendors It is critically essential for vendors to know what markets and PAGE

30

applications they are serving, and why, as well as understand their customers' operations, how data is acquired and flows to decision-

Living on the Edge

EDGE COMPUTING IN THE NEW OT SYSTEM

makers. These requirements will drive your designs and product line offerings. Note that converting existing products or renaming them Edge devices generally will not cut it. Edge devices should be looked at 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 niche players with unique value propositions will also do well.

Remember that IT is in the lead for choosing Edge devices, even TABLE OF

CHOOSING AN EDGE DEVICE

costs of manufacturing and generate acceptable margins. Specialized

for OT applications, so that they will bring a different perception to

Edge criteria include but is not limited to: 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 4 5 6 7 8

decoupling of software from hardware and virtualization, vendors

Power requirements

should focus on flexibility and adaptability. And expect to meet the demands of both IT and OT.

Enclosure and environmental rating Hazardous area classification Memory capacity Programming languages supported Communication protocols & connectivity Security Reliability Scalability and upgradeability Administrative requirements

Summary PAGE

Living on the Edge

EDGE COMPUTING IN THE NEW OT SYSTEM

31

As we previously noted, Edge devices come in all shapes and sizes,

Nevertheless, LNS Research expects a degree of consolidation

from general-purpose to industry and application-specific designs,

in the market as vendors realize what designs best serve customers'

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

Overall, market growth is strong, but adoption is still relatively ear-

is timed with the opening up of control systems and the OPA initia-

ly, particularly for data collection, analytics, and control applications.

tive. The exception will be in the upstream oil & gas segment where

Standard designs have yet to fully emerge and scale in volume across

several startups are battling for position with traditional Big Tech and

the majority of industries, with discrete leading the way through the

automation vendors in this highly diverse market with no clear win-

use of the mini-PCs, which are readily adaptable to the factory floor

ner yet in sight.

environment. Who, how, and where they will break through remains to be seen.

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 4 5 6 7 8

not work. Rather, it is a technology that hasn’t fully matured technically, outside of gateways and servers, nor found its rightful place in the new OT Ecosystem. Thus, there is a way to go until we reach the plateau of productivity.

Industrial Transformation Resource Guide PAGE

32

value chain. Use these resources to learn how to align the people,

BLOG | How the Right Operational Architecture Powers the Analytics That Matter

processes, and technologies required to achieve Operational

View Blog

Companies use digital technology to drive transformation across the

Living on the Edge

EDGE COMPUTING IN THE NEW OT SYSTEM

Excellence in your organization.

TABLE OF

INDUSTRIAL TRANSFORMATION BLOG | Introducing the Industrial Transformation (IX) Reference Architecture View Blog

1 2 3 4 5 6 7 8

View Research

FACTORY OF THE FUTURE

RESEARCH | Industrial Transformation Success: How to Secure Operations' Buy-in to Create Effective Leadership

RESEARCH | Factory of the Future: Industrial Transformation is Changing How We Run Our Factories

View Research

View Research

BLOG | Understanding Industrial Transformation: Definition and Framework for Success

BLOG | The Factory of the Future and People

CONTENTS

SECTION

RESEARCH | Analytics Really Do Matter: Driving Digital Transformation and the Smart Manufacturing Enterprise

View Blog

View Blog

RESEARCH | Industrial Transformation: Architecture and Analytics Just the Beginning View Research

RESEARCH | Industrial Control Systems and Edge Computing: Enabling an Operational Architecture for Applications and Analytics View Research

INDUSTRIAL ANALYTICS RESEARCH | Build a Flexible Industrial Analytics Strategy for Today and Tomorrow: Why Business Leaders Should Adopt a Use Case Approach View Research

RESEARCH | Improving Continuous Improvement: Reinvent Lean Today with Digital Technology View Research

RESEARCH | Forging the Digital Twin in Discrete Manufacturing: A Vision for Unity in the Virtual and Real Worlds View Research

RESEARCH | MOM and PLM in the IIoT Age: A Cross-Discipline Approach to Digital Transformation View Research

Industrial Transformation Resource Guide (Cont.)

PAGE

Use Initial Caps Here for Title

USE ALL CAPS TITLE HERE ADD MORE Title when needed

33

TABLE OF

CONTENTS

SECTION

1 2 3 4 5 6 7 8

APM 4.0 RESEARCH | APM and Risk Management: A Comprehensive Approach Beyond Asset Reliability View Research

BLOG | APM 4.0 and Risk Management — Industrial Transformation (IX) Leaders Connect the Dots View Blog

Solution Selection Guide | Asset Performance Management (Platform Vendors), 2018 Edition View Solution Selection Guide

RESEARCH | APM 4.0: Prescription for Better Profitability in Operations View Research

RESEARCH | The Road to Digital Transformation Success: A Methodology to Modernize Operational Excellence 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

RESEARCH | Unify EHS and Quality: Capture Synergies and Turn Policy into Action View Research

RESEARCH | The Connected Worker: Mobilize and Empower People to Reduce Risk and Improve Safety View Research

QUALITY, COMPLIANCE RESEARCH | Quality 4.0 Impact and Strategy Handbook View Blog

RESEARCH | Driving Operational Performance with Digital Innovation: Connecting Risk, Quality and Safety for Superior Results View Research

RESEARCH | Roadmap to Supplier Status: Think Risk Performance, Not Compliance View Research

Industrial Transformation Resource Guide (Cont.)

PAGE

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USE ALL CAPS TITLE HERE ADD MORE Title when needed

34

INDUSTRY FOCUS AUTOMOTIVE RESEARCH | IATF 16949-2016: A Pivotal Opportunity in Automotive Quality Management 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

View Research

SECTION

LIFE SCIENCE RESEARCH | Quality 4.0 in Pharmaceutical: Use Cases and Advantage in a Digitally Maturing Market

CONTENTS

1 2 3 4 5 6 7 8

View Research

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: License to distribute this research report has been granted to:

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