Antonio Neri, president and chief executive of Hewlett Packard Enterprise Co., speaks at CIO Network in San Francisco, March 6, 2018.

Antonio Neri, president and chief executive of Hewlett Packard Enterprise Co., speaks at CIO Network in San Francisco, March 6, 2018.

Hewlett Packard Enterprise Co. is investing $4 billion in edge computing technologies and services, as the company’s new CEO Antonio Neri makes a bet that the next era of computing will be dominated in part by corporations’ need for real-time data analysis and personalization.

HPE is among several companies making sizable investments in this new type of computing architecture, in which data is processed and analyzed on or near the device where it’s generated, instead of first being sent to a corporate cloud or data center.

Edge computing, which is being driven in part by the rise in so-called Internet of Things devices, is what helps power self-driving cars, personalized mobile-app promotions based on real-time analytics and predictive maintenance on industrial machines.

HPE started offering some edge computing services following its $2.7 billion acquisition in 2015 of wireless-networking company Aruba Networks Inc., a deal Mr. Neri led under former CEO Meg Whitman.

Mr. Neri, who is also the company’s president, says edge computing is a “revolution” in the computing era and currently represents a $28 billion total addressable market opportunity for HPE.

“We see significant areas for growth … (as) more assets and ‘things’ come online and the amount of data generated continues to grow exponentially,” he said in an email. “Ultimately, this could be a hundreds of billions of dollars opportunity for HPE.”

The number of devices connected to the internet is surging, and will reach 20.4 billion by 2020, up from 8.4 billion in 2017, according to Gartner Research Inc. By 2021, 40% of enterprises will have an edge computing strategy in place, up from about 1% in 2017, Gartner says.

HPE will invest $4 billion to accelerate innovation in what HPE calls “the intelligent edge” over the next four years. Details of specific new products or services were not disclosed, although the company said it plans to bolster its research and development efforts and edge computing-focused advisory services, as well as advancements in technologies that will accelerate the speed, accuracy and efficiency of computing at the edge of the network.

Edge computing systems that facilitate real-time analytics and personalization could help chief information officers generate more revenue for their businesses and add business value, said Stewart Ebrat, CIO at bridal gown and fashion company Vera Wang Co, an HPE customer.

“The customer has always been number one (at Vera Wang), but technology is going to enhance that experience even further,” he said.

With edge computing architecture, data analytics and Bluetooth-enabled beacon devices, a store representative could know more about a prospective customer’s fashion, style and clothing preferences as soon as they walk into a brick-and-mortar store, Mr. Ebrat said.

Personalized, easy and memorable experiences could ultimately help boost the number of repeat and referral customers, he said.

HPE’s edge computing investment signals that it’s being forward-thinking and “visionary” under Mr. Neri but there are also risks, said Tom Bittman, a Gartner analyst specializing in infrastructure and operations.

The challenges for HPE include identifying so-called volume markets, versus customized, one-off edge computing solutions for individual customers, as well as building appropriate technologies to fit market demand, and partnering with other vendors to build edge computing solutions for enterprise customers, Mr. Bittman said.

There also is competition. Microsoft Corp., for example, announced in April that it will invest $5 billion in technologies related to the Internet of Things over the next four years, including edge computing.

“We’re hearing from every single vendor on the planet that they’re going to go after edge. HPE, to their credit, has a more thought-out and maybe louder voice than they have in the past,” Mr. Bittman said.