Distributed Cloud – Why Do Large Enterprises Choose It?

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In this article, you will learn:

• What distributed cloud is
• How distributed cloud works and the benefits it brings to large enterprises
• The legal and environmental aspects of using distributed cloud
• Practical applications of distributed cloud

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Reducing latency to milliseconds and ensuring flawless compliance with local data protection regulations become reality through the strategic placement of IT resources close to the end-user. Distributed cloud is revolutionizing traditional cloud computing by eliminating performance barriers in managing global infrastructure and IoT systems. By implementing this model, you will optimize operational costs and ensure the highest availability of tools for teams distributed around the world. See how to use distributed architecture in practice to combine operational stability with rigorous legal requirements in international markets.

Introduction to distributed cloud

Companies are placing increasing importance on the scalability and flexibility of the technologies used in their work environments, so it is no surprise that they are increasingly adopting decentralized clouds and distributed systems. One of the most widely used solutions in this regard is the distributed cloud. What exactly is it? Distributed cloud is an approach to cloud computing that involves distributing cloud resources (e.g., servers, databases, and network services) across geographically dispersed locations. Instead of centralizing resources in one or a few large data centers, distributed cloud places them in multiple locations close to end-users or IoT devices. Despite this, everything is managed centrally as a single cloud.

• Internet of Things devices generate vast amounts of data in real-time that require immediate analysis and response. Thanks to distributed cloud, this data can be processed closer to its source, which improves performance.
• Distributed cloud allows for the delivery of content and games with low latency to users worldwide, regardless of their location.
• E-commerce companies can use distributed cloud to deliver personalized offers and content closer to local markets.

How does distributed cloud support large enterprises?

Distributed clouds, alongside P2P clouds, can support the operations of large enterprises in various ways. The most common application of these clouds in large companies is ensuring data processing compliance across different jurisdictions. For example, a corporation operating simultaneously in the European Union, the United States, and Canada must meet GDPR requirements in the EU, the California Consumer Privacy Act in the USA (as well as other state regulations, since the USA does not have a federal equivalent to GDPR), and PIPEDA in Canada. Thanks to distributed cloud, a corporation can host local customer data in data centers located within that specific region, meeting local legal requirements while maintaining global service consistency. Another example is the optimization of performance and user experience. Here, we can refer to the example mentioned earlier – an e-commerce company can use distributed cloud to deliver content (e.g., product photos or recommendations) from the geographically closest data center. This allows users to browse products and make purchases quickly, which improves their overall experience. Distributed clouds in large enterprises also help organize the work of globally dispersed teams. An enterprise employing people from a dozen countries around the world can use these types of clouds to provide remote access to business tools, data, and applications. Employees can collaborate effectively from anywhere in the world, and IT resource consumption can be adjusted to local needs.

Key benefits of distributed cloud

We can now briefly summarize what companies gain by using distributed clouds. The most visible benefits of using distributed cloud infrastructure are:

• latency reduction and performance improvement;
• compliance with local regulations;
• increased tool availability and fault tolerance.

It is also worth emphasizing that distributed cloud allows for more efficient cost management by allocating resources where they are most needed. A company operating in many countries can move workloads to cheaper regions or launch resources only when needed to reduce operational costs. Thanks to distributed clouds, resource consumption can also be scaled faster and more easily. Importantly, access to distributed infrastructure allows companies to implement new technologies (e.g., artificial intelligence) more quickly. The distribution of resources allows for faster testing of new features, which is significant, for example, in managing operations on a global scale. Centralized management of distributed infrastructure translates into operational consistency and the maintenance of high standards across different markets. We must also not forget that distributed cloud helps companies be greener. This is mainly due to the fact that data processing takes place locally and primarily when it is actually needed, which not only reduces energy consumption but also the overall demand for it. Combined with the use of renewable energy sources to power data centers and low-emission server cooling methods, this can contribute not only to the company’s better energy efficiency but also to improving its image.

Examples of distributed cloud usage

What other examples of distributed cloud applications can we find? There are many, and one of them is the possibility of using such solutions in the financial sector – where every millisecond can matter. Financial institutions use distributed data centers to quickly process huge amounts of data close to the source of its generation, which minimizes latency and allows for the immediate detection of anomalies, such as suspicious transactions. Distributed clouds are also used in the Internet of Things, e.g., in smart cities. One such solution is Cisco Kinetic for Cities, which is used to manage data from sensors placed throughout a city to monitor traffic, energy consumption, or air quality. Data can be processed close to where it is generated, which allows, for example, for the optimization of traffic lights in real-time to improve road throughput. Another example of distributed cloud application can be production automation in industry, as is the case with General Electric. The company uses clouds in its factories to automate production processes and optimize efficiency. Sensors on production lines send data to local data centers, allowing GE to monitor machine status, predict failures, and optimize production.