Innovation matters if a business is to stay relevant and avoid disruption. Where will it appear?

Some industry experts say innovation will not happen in the cloud, but at the edge. Edge computing, though, is an extension of cloud computing. The practical meaning is that the cloud and the edge will work together: heavy training and storage in the cloud, and fast, local decisions on the device.

Technologies such as the face recognition in Apple's iPhone X also raised concern about personal data. Earlier Apple devices used fingerprints, and some Android devices used iris recognition. What had been science fiction quickly became a product feature.

The useful split is not "cloud or edge". Data that must stay private or that must be answered in milliseconds belongs at the edge. Data that improves a model over time belongs in the cloud. Products that use both will be the ones that keep working when the network does not.