There’s a growing number of organisations thinking that cloud computing and the intermediate communications systems won’t eventually be able to cope with the extremely large number of IoT devices.
Computing near the IoT devices themselves, called Edge or Fog computing, will allow data to be filtered such that only pertinent data ends up in the cloud. It will also allow data to be cached when it can’t be sent yet. Also, there are classes of IoT ‘things’ that need local processing to remove the latency of otherwise using communications/cloud computing and thus provide more immediate alerts and information.
An interesting prospect and opportunity for mobile developers is the use of smartphones as edge devices or even devices based on AndroidThings.