AWS for Industries
Consolidate, modernize, transform: Edge computing for modern retail
Retailers face increasing pressure to modernize their infrastructure while maintaining disciplined capital investment. We see three consistent themes emerging from conversations with customers: A need to consolidate expensive store servers, a desire to establish a unified architecture across cloud and edge, and an urgency to support advanced in-store applications. Businesses seek to transform their stores into intelligent hubs that can support next-generation retail experiences, but often struggle with how to begin this journey using their existing infrastructure. In this blog, you’ll learn how retailers can leverage edge computing to consolidate infrastructure, establish unified cloud-edge architecture, and enable next-generation store applications while maximizing existing investments.
The business case for edge computing
Edge computing is transforming the retail landscape by bringing cloud-native capabilities closer to stores, enabling retailers to consolidate infrastructure, reduce costs, and support advanced applications. According to IDC, by 2028, 30 percent of retailers will drive 10 percent IT costs out of stores by utilizing distributed edge computing with onboard AI chips, reducing latency and improving IT operations performance.
The real-world impact can be substantial and measurable. Retailers using modern edge computing solutions can achieve:
- 70 percent faster deployment of new store features and applications
- 10 percent reduction in IT costs through server consolidation
- Improved application performance with 60 percent lower latency
- Enhanced security and compliance through centralized management
- Improved resiliency, data management, and disaster recovery
Key use cases driving business value
Edge computing enables three transformative capabilities that deliver immediate value to physical store operations:
Store Server Consolidation: Many retailers maintain 3-5 separate servers per store for different applications (POS, inventory, security, etc.). Using Amazon EKS Hybrid Nodes, retailers can consolidate these workloads onto a single, modern edge platform. For example, AWS Partner Spectro Cloud is helping a global coffee chain reduce their store server footprint by 60% while improving application performance and reducing management complexity. This consolidation typically delivers 10-15 percent cost savings while providing a foundation for future innovation.
Modern Point of Sale (POS): Traditional POS systems often require dedicated hardware and complex networking. With edge computing, retailers can modernize their POS infrastructure using containerized applications running on EKS Hybrid Nodes. AWS Partner Artisan Studios has helped a US quick-service restaurant deploy cloud-native POS solutions that reduce hardware costs by 40 percent while enabling faster feature updates and improved reliability. The solution also supports advanced capabilities like offline operation and real-time inventory updates.
Advanced In-Store Applications: Edge computing provides the foundation for next-generation retail applications including computer vision, IoT, and AI/ML workloads. Retailers can run these workloads efficiently at the edge while maintaining seamless integration with cloud services. For example, retailers can process real-time video feeds for inventory monitoring, deploy IoT sensors for environmental control, and run AI models for personalized customer experiences—all managed through a single, unified control plane. According to Gartner, this enables retailers to deploy an employee “superapp” that consolidates store data, operational intelligence, and applications through a single digital experience. For instance, GameStop unified its tasks and communications across all stores, distribution centers and headquarters locations using a frontline superapp, resulting in measurable improvements in audit work, shrink reduction, and associate engagement, while enabling real-time analytics for better decision making.
AWS offers detailed architectural guidance to help retailers design and implement a modern edge computing platform built on Amazon EKS Hybrid Nodes, enabling unified management of Kubernetes workloads across cloud and edge environments. Further, we offer guidance on leverage AI and Generative AI capabilities at retail locations using lightweight models and containers, helping customers deploy advanced innovative capabilities to their physical stores. Our reference architectures and implementation patterns cover critical considerations including network connectivity, security, observability, and application lifecycle management. Each reference architecture has specific guidance for retail workloads like point-of-sale, inventory management, and computer vision applications. Through validated partner solutions and AWS Professional Services expertise, we provide prescriptive guidance for creating a scalable, resilient edge architecture that can support both existing applications and future retail innovation.
Figure 1 – Guidance for Edge Computing in Retail on AWS
Figure 2 – Guidance for AI at the edge on AWS
Strategic implementation considerations
For business leaders embarking on their edge computing journey, success begins with a pragmatic, structured approach centered on three phases:
Assessment: Start by mapping your current store technology landscape and identifying opportunities for consolidation and modernization. Spectro Cloud’s assessment framework helps retailers evaluate their existing infrastructure, application requirements, and operational processes to create a clear modernization roadmap.
Implementation: Choose the approach that best fits your needs. For new stores, Spectro Cloud provides a complete edge platform that integrates seamlessly with AWS services. For existing locations, Artisan Studios specializes in helping retailers gradually modernize their infrastructure while maintaining business continuity. Many successful customers opt for a hybrid approach, implementing full-scale solutions in new locations while progressively upgrading existing stores.
Investment strategy: Balance immediate returns with long-term transformation goals. A store-by-store deployment model allows organizations to learn from each implementation while managing capital expenditure effectively. Both Spectro Cloud and Artisan Studios offer flexible consumption models that align costs with value realization.
The path forward with AWS
AWS understands that every organization’s journey to edge computing is unique. Our approach emphasizes practical considerations that matter to business leaders: minimizing upfront capital requirements, maximizing existing investments, and ensuring solutions can scale efficiently.
Amazon EKS Hybrid Nodes represents a breakthrough in retail edge computing, allowing retailers to use their existing on-premises infrastructure as nodes in Amazon EKS clusters. This creates a unified Kubernetes management experience across cloud and edge environments, significantly simplifying operations and reducing costs.
To accelerate your edge computing journey, AWS offers:
- Amazon EKS Hybrid Nodes: Run Kubernetes workloads consistently across your on-premises edge locations and AWS cloud
- AWS Outposts Family: Bring AWS services and operating models to any facility
- AWS Professional Services support: Deep technical expertise and implementation guidance
- Validated Partner solutions: Pre-built retail solutions from partners like Spectro Cloud and Artisan Studios
What’s next
Edge computing has evolved from innovation to necessity. With a comprehensive suite of services and partner solutions from AWS, you can begin transforming your stores without requiring extensive capital investment or specialized expertise. As IDC predicts, “by 2026, 90 percent of retail tools will embed AI algorithms.” Retailers who establish robust edge computing infrastructure today will be uniquely positioned to leverage these next-generation applications.
Don’t let your competitors get ahead—contact your AWS representative today to schedule a discovery session and learn how we can help you unlock the power of edge computing in your stores. The future of retail is intelligent, responsive, and powered by the edge. Are you ready to lead the transformation?