Cloud-centralized IoT is simpler to build but pays bandwidth and latency on every event. Edge processing front-loads gateway compute but shrinks the data bill and survives link loss. Most production deployments are hybrid.
| Dimension | Edge | Cloud |
|---|---|---|
| Latency | Local, ms | Internet RTT |
| Bandwidth cost | Low (summarized) | High (raw) |
| Resilience | Survives outage | Depends on link |
| Compute cost | Gateway HW | Recurring cloud |
When latency matters (control loops), bandwidth is costly (many sensors), or the site must keep working during connectivity loss.
Usually not — edge aggregates and acts locally; cloud still handles analytics, fleet management, and long-term storage.
OTA updates the edge gateway firmware and containers; the cloud orchestrates which devices get which build.
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