Scenario: A 12-story office building has 500 sensors (temperature, humidity, occupancy, CO2). The facilities manager must decide: send all raw data to cloud, or process at the gateway?
Given Data:
- Sensors: 500 total (200 temp, 150 humidity, 100 occupancy, 50 CO2)
- Sampling rate: 1 reading/minute per sensor
- Raw message size: 180 bytes (JSON with metadata)
- Cellular data plan: $0.10 per MB
- Gateway: Raspberry Pi 4 ($75) with Python edge processing
Step 1: Calculate raw data transmission cost
Messages per day: 500 sensors × 1 msg/min × 60 min × 24 hr = 720,000 messages/day Daily data volume: 720,000 × 180 bytes = 129.6 MB/day Monthly data: 129.6 MB × 30 = 3,888 MB/month Monthly cost (raw): 3,888 × $0.10 = $388.80/month
Step 2: Design edge processing strategy
Temperature/humidity aggregation: - Send 1-minute averages only when change >0.5°C or >2% - Typical change rate: 10% of readings show meaningful change - Reduction: 350 sensors × 90% filtered = 315 sensors worth of traffic eliminated
Occupancy change detection: - Send only on state change (occupied ↔︎ vacant) - Typical: 5 state changes/day per sensor - Before: 100 sensors × 1,440 msg/day = 144,000 messages - After: 100 × 5 = 500 messages/day (99.7% reduction!)
CO2 anomaly detection: - Send only when >1000 ppm (poor ventilation alert) - Typical: 2% of readings exceed threshold - Reduction: 50 sensors × 98% filtered = 49 sensors worth eliminated
Step 3: Calculate edge-processed transmission cost
Remaining messages: - Temp/humidity: 350 × 10% × 1,440 = 50,400 messages/day - Occupancy: 100 × 5 = 500 messages/day - CO2: 50 × 2% × 1,440 = 1,440 messages/day - Total: 52,340 messages/day (vs 720,000 raw)
Reduction: (720,000 - 52,340) ÷ 720,000 = 92.7% data reduction
Monthly data (processed): 52,340 × 180 bytes × 30 = 283 MB/month Monthly cost (processed): 283 × $0.10 = $28.30/month
Step 4: Calculate ROI
Monthly savings: $388.80 - $28.30 = $360.50/month Annual savings: $360.50 × 12 = $4,326/year Gateway hardware cost: $75 (one-time) Payback period: $75 ÷ $360.50 = 0.2 months (6 days!) 5-year savings: $4,326 × 5 - $75 = $21,555
Decision: Implement edge processing (ROI: 57:1 over 5 years)
Key insight: Edge processing pays for itself in weeks when cellular data costs dominate, even with simple filtering strategies.