IoT Value and Product Strategy · Study deck
IoT Systems Evolution: Computing and Placement
Computing improved, but a sensor system still cannot send every byte to an unlimited cloud without cost, delay, or energy consequences.
Ada is your guide for this deck.

After studying this chapter
Learning objectives
You will be able to:
- Explain: Companies that rip out centralized servers in favor of edge-only architectures discover they still need cloud for ML training, fleet management, and long-term analytics.
- Explain: Misconception 2: "Moore's Law ended, so computing improvement stopped.": Long-run transistor-density gains continued after real technologies departed from ideal Dennard scaling.
- Explain: Present the “10× cycle” as a teaching heuristic only; avoid saying each era had 1,000× more devices or 1/100th cost.
- Explain: Local intelligence is an architecture choice used when latency, resilience, privacy, bandwidth or safety justifies processing near the physical process.
Major section
Distributed Computing Economics
Today's $0.50 microcontroller has more computing power than a $10,000 desktop computer from 1995.
- Edge systems perform local analysis, fog nodes coordinate a site or region, and cloud platforms keep long histories or train complex models.
- Raw data should shrink as it moves upward while the value and scope of insight increase.
- Placement follows response time, bandwidth, privacy, resilience, and coordination needs rather than a fixed edge-first rule.
Major section
IoT Systems Evolution Myths
Misconception 1: "IoT is just about connecting things to the internet.": Simple connected sensors are valid IoT endpoints.
- Local intelligence is an architecture choice used when latency, resilience, privacy, bandwidth or safety justifies processing near the physical process.
- Misconception 2: "Moore's Law ended, so computing improvement stopped.": Long-run transistor-density gains continued after real technologies departed from ideal Dennard scaling.
- Misconception 3: "Cloud computing and IoT are competing approaches.": Cloud and edge are complementary, not competing.
- Misconception 4: "IoT just needed cheaper hardware to happen.": Lower component cost was one contributor, not a prerequisite acting alone.
Major section
Systems Evolution Pitfalls
Companies that rip out centralized servers in favor of edge-only architectures discover they still need cloud for ML training, fleet management, and long-term analytics.
- The correct approach is a complementary multi-tier architecture, not wholesale replacement.
- Pitfall 2: Extrapolating Moore's Law linearly into device cost: A $0.50 microcontroller does not mean a $0.50 IoT device.
- They require sub-$1 hardware, 10+ year battery life, and operation in harsh environments (underwater, underground, extreme temperatures).
Major section
Computing Power Revolution
MCU use also changes from about 100 mW typical to 50 mW active and 5 mW asleep.
- Lower entry cost widens feasible deployments; it does not remove lifecycle, network, or cloud operating cost.
Major section
Summary
Present the “10× cycle” as a teaching heuristic only; avoid saying each era had 1,000× more devices or 1/100th cost.
- The mid-2000s power-efficiency pivot was one contributor to greater emphasis on efficiency, multicore processors and specialised logic.
- Integration and component-cost trends expanded the capability available in microcontrollers, radios and sensors, but complete-node and deployment costs still matter.
- Integration, efficiency, radios, networks and software made connected computing practical for many more physical processes.
Deck summary
Key takeaways
Today's $0.50 microcontroller has more computing power than a $10,000 desktop computer from 1995.
- Misconception 1: "IoT is just about connecting things to the internet.": Simple connected sensors are valid IoT endpoints.
- Companies that rip out centralized servers in favor of edge-only architectures discover they still need cloud for ML training, fleet management, and long-term analytics.
- MCU use also changes from about 100 mW typical to 50 mW active and 5 mW asleep.
- Present the “10× cycle” as a teaching heuristic only; avoid saying each era had 1,000× more devices or 1/100th cost.
Retrieval practice
Recall check 1 of 5

Ada says: answer from memory, then check your reasoning.
Q1A factory needs a safety-critical machine shutoff, site-wide coordination, and long-term fleet learning. Where should each job run?
Show answer
Answer: B Correct: keep the safety action in the local controller; fog coordinates the site and cloud uses fleet history.
Retrieval practice
Recall check 2 of 5

Ada says: answer from memory, then check your reasoning.
Q2Which challenge contributed to the departure from ideal Dennard scaling in the early-to-mid-2000s?
Show answer
Answer: D Ideal Dennard scaling assumed smaller transistors could run at lower voltage without higher power density.
Retrieval practice
Recall check 3 of 5

Ada says: answer from memory, then check your reasoning.
Q3Why were large-scale distributed IoT deployments less common in the 1990s than today?
Show answer
Answer: A Earlier connected systems were real.
Q4Complete the healthcare IoT vital signs aggregator:
Show answer
Answer: A Negative slicing [-window_size:] takes the last N elements for a moving average.
Retrieval practice
Recall check 4 of 5

Ada says: answer from memory, then check your reasoning.
Q5A farm is evaluating a large soil-sensor deployment. Which economic change most directly improves feasibility as the node count grows?
Show answer
Answer: B Falling total node cost improves the economics of dense sensing, but cost is not the only factor.
Retrieval practice
Recall check 5 of 5

Ada says: answer from memory, then check your reasoning.
Q6Before accepting the chapter's illustrative claim that distributed factory placement saves $98K upfront, which evidence is most important?
Show answer
Answer: B Treat the $98K result as an illustrative scenario, not a universal historical fact.
Print reference
Answers 1 of 2
Answer key.
- B · Correct: keep the safety action in the local controller; fog coordinates the site and cloud uses fleet history.
- D · Ideal Dennard scaling assumed smaller transistors could run at lower voltage without higher power density.
- A · Earlier connected systems were real.
- A · Negative slicing [-window_size:] takes the last N elements for a moving average.
- B · Falling total node cost improves the economics of dense sensing, but cost is not the only factor.
Print reference
Answers 2 of 2
Answer key.
- B · Treat the $98K result as an illustrative scenario, not a universal historical fact.