System Architecture

2 min read Last updated Thu Jun 11 2026 16:44:15 GMT+0000 (Coordinated Universal Time)

An IoT solution consists of interconnected hardware and software components that collect, transmit, and process data for decision making.

Device Layer

Physical layer. Hardware components embedded in physical devices. Low computing power, low energy consumption, lower reliability per unit. Deployed in large volumes. Handles raw data collection and direct physical-world interaction.

  • Sensors
    Take inputs from the environment and convert them into data.
  • Actuators
    Modify the environment based on system commands.
  • Hardware interfaces
  • Microcontrollers
  • Embedded software

Edge Processing

Data processed at IoT devices, close to the source of data generation. Computing power is very limited. Reduces latency and bandwidth usage by processing locally.

Communication Layer

Intermediate processing layer between edge and cloud. Transmits data between devices and servers. Reduces latency by processing locally. Reduces bandwidth load on the network.

Handles:

  • Local computation
  • Local decision-making
  • Data pre-processing

Examples:

  • Wireless communication protocols
  • Internet connectivity
  • Networking infrastructure

Fog Processing

Data processed at intermediate nodes between edge and cloud. Nodes can be local servers, gateways, or routers. Slightly more computing power than edge devices. Reduces latency and bandwidth usage compared to cloud processing.

Cloud Layer

Back-end infrastructure (Google Cloud, AWS, Azure). Not suitable for latency-sensitive decisions. Does compute-intensive processing.

  • High-power compute
  • Large-scale storage
  • Big data analytics
  • AI/ML workloads
  • Computer vision
  • Voice recognition
  • NLP
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