What is a key characteristic of edge computing in cloud technology?

Edge computing in cloud technology is characterized by the reduction of latency that is achieved by processing data closer to its source. This approach means that instead of sending all data to a centralized data center for processing, computations are made at the edge of the network, where the data is generated. As a result, this localized processing minimizes the distance that data must travel, leading to quicker response times and improved performance for applications that require real-time processing.

Working closely with IoT devices or sensors, edge computing enhances the efficiency of data handling and reduces the amount of bandwidth required for data transmission back to centralized servers. This capability is especially beneficial in scenarios where immediate insights from data are critical, such as in autonomous vehicles, smart cities, or industrial automation.

The other characteristics, such as centralization of data processing, increased costs for data transmission, or exclusive reliance on cloud resources, do not align with the fundamental principles of edge computing, which specifically aims to decentralize processing and optimize performance by being closer to the data source.