Edge and Fog Computing: differences and similarities
Fog computing and edge computing are often confused, probably due to the similarity of the functionalities they offer in terms of data processing and data sending to analytical platforms located close to the data source (e.g. sensors on machinery, wearables, various types of devices on assets to be monitored and controlled).
Both technologies can help organizations reduce their reliance on cloud-based platforms to analyze data, which often leads to latency issues with negative impacts particularly in use cases where closed-loop control is expected, typical of Smart Building, Health, Industry, to get closer to a data-driven approach that allows it to take faster decisions. In this perspective, in line with the increase in computation stress on Cloud systems within the networks, we will see the decentralization of the selected processing to be implemented on or near (at the edge) of the IoT field sensors collecting data.
Fog and edge computing architectures therefore reduce the amount of data that must be sent and received from remote servers on the cloud and facilitate the immediate use of the data on which it is necessary to operate processing often within milliseconds or tens of milliseconds from the collection. The main difference between fog and edge computing is where the processing of that data occurs.
In Edge Computing, the data are processed on the same devices (if they have enough computational capability), or on the “IoT gateways”, i.e. Edge Computers connected to the devices in the local network.
In Fog Computing solutions, instead, the data processing activities take place on a network of computing elements (hub, node, router, edge computer, smart device or gateway): the microprocessors on IoT gateways, or on edge computers or personal computers, connected to the LAN, which constitute the fog nodes of the LAN, which could be physically far from the sensors and actuators.
In addition, usually the “fog” paradigm prefers “open” technologies while the more flexible “edge” paradigm usually uses both “open” and “proprietary/licensed” technologies. From risk analysis point of view, edge computing could be preferable to fog computing as it potentially contains fewer elements in which a failure could occur. In fact, in the “fog” architecture each sensor or device within the network must be programmed to determine what kind of information should be stored and processed locally and what should be sent to the cloud for further processing and/or storage.
However, the difference is not so pronunced, so both Edge and Fog Computing approaches allow lower latency than Cloud computing and therefore are more suitable for the rapid analysis required in real-time or near-time applications. Cloud computing instead, offers superior and advanced processing capabilities, superior processing power and storage capacity and therefore is the most suitable technology for complex and in-depth long-term data analysis. Another important difference relates to internet use and security: cloud computing requires 24/7 Internet access, while the other two can work offline. Therefore, fog and edge computing are best suited for use cases where IoT sensors may not have seamless connectivity to the Internet. Regarding the security issue, since the data is distributed between the nodes (Fog computing) or in the device itself (Edge computing), it is more difficult to manipulate them -despite the centralized cloud system – but on the other hand, the use of cloud computing is preferred in case security policies are implemented on a single data repository (instead of multiple repositories distributed in the network).
Thanks to the use of different data centers and small devices, the probability that a violation interrupts the entire network is reduced.
Studies reveal that more than 50% of U.S. companies consider rapid and accurate data collection and analysis to be an essential aspect of their strategy, so it seems unlikely that this is just a passing fad.
Statistics also show that the market for edge computing services is set to increase by 50% in the next year, especially with the rise of AI technology that requires fast machine learning. Currently, about 10% of data is collected and processed outside of conventional cloud computing methods. However, a study by Gartner predicts that by 2025, about 75% of data will be processed outside the cloud.
The global edge computing market by region covers 5 major geographic regions, namely, North America, Asia Pacific (APAC), Europe, Middle East and Africa (MEA), and Latin America. Companies that want to ensure a high level of competitiveness will necessarily reinvent the way they do business: the versatility and scalability of edge computing is perfectly suited to both start-ups and established companies, regardless of the type of company. It is well known that collecting, processing and analyzing data is a crucial success factor for companies, small, medium or large.
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Integrating Hardware and Software in Building Energy Management: TERA srl Solutions
TERA will present the latest innovations in products and services for the Smart Building sector at Fiera Milano Rho, from 19 to 21 November 2025 — an unmissable opportunity to explore concrete innovations in the fields of Digital and Energy Transition. These solutions are designed to help companies achieve Energy Efficiency and Sustainability goals through integrated, modular, and scalable systems for: Energy Monitoring applications (compliant with several frameworks such as Energy Dashboarding T5.0, Energy Diagnosis according to Legislative Decree 102/2014, and Energy Investments within Program/PIA/MiniPIA Contracts), dedicated to both industrial and service sectors; Energy Communities (CERs), including support services for their establishment, and Local Flexibility Services, enabling users to offer remunerated grid services by modulating their own installations; and, more broadly, Industry 4.0 applications using IoT Edge Computers to develop Building, Asset, and Industry solutions with open-source tools and third-party frameworks. These solutions are designed both for end-user companies and for System Integrators developing turnkey systems, with the possibility of software branding and full autonomy in data management. Smart Building EXPO Milano 2025 is the international fair dedicated to the crucial topic of the twin digital and energy transition in buildings (and, more broadly, industrial assets), with a special focus on Sustainable “Digital Energy” solutions, representing the convergence between buildings and the power grid. Do you want to: Monitor photovoltaic production and energy consumption at the meter (to verify incentives or identify the most convenient tariff profile)? Control electrical loads or batteries (storage systems) to optimize self-consumption (in CERs or for flexibility services that reward users)? Consider also temperature, humidity, presence, window opening, CO₂ levels, and air quality to build a truly intelligent system (e.g. turning off the boiler or heat pump when not needed)? These are just a few examples of the functions that make buildings truly intelligent — not just in theory — and the very questions that designers and installers ask themselves to turn innovation into real user benefits. However, implementing such solutions is not always straightforward, since it requires effective integration between hardware and software. Today, designers, installers, and System Integrators/ESCOs can rely on TERA’s interoperable approach: open controllers (Linux-based, with available APIs), multi-protocol gateways (freedom to choose sensors and actuators, connect to any thermal machine), and ready-to-use customizable software modules, which can be configured by TERA or by developers working with the integrator/designer. In addition to its well-established technologies (including the chain2 fiscal meter readers, unique on the market and fully programmable by TERA’s clients), TERA will present several new solutions at the fair — most notably, the Device Management Platform (DMP): a web portal for data management and visualization, designed to collect, organize, and analyze structured information from distributed sensors connected to TERA’s Edge Computers. The DMP communicates using the most common IoT protocols such as Modbus, Z-Wave, Ethernet, Wi-Fi, and soon also LoRa and others. The platform was developed to meet a growing demand for Cloud/server-side data centralization. Today, designers, installers, and system integrators can easily implement both field-level hardware and software, while also relying on a ready-to-use, open, and configurable central platform. The platform is designed to support: Real-time data monitoring (storage and visualization), providing continuous and reliable readings of energy variables (via energy meters, medium-voltage and low-voltage meter readings using chain2 and chain1 protocols) and ensuring comprehensive coverage of all building system functions through a wide range of IoT sensors; Programmable threshold alarms on each parameter, offering decision support and optimizing maintenance costs by reducing reaction times to malfunctions or low system performance. 📍 These and other solutions will be showcased at Smart Building Expo 2025 in Milan (19–21 November), where TERA will reaffirm its commitment to the digital and energy transformation of buildings, also presenting: The new version of the Device Configuration Platform, a free software tool that now enables simple and autonomous configuration of Modbus sensors and devices; The latest development trends toward integrated Cybersecurity, AI, and blockchain solutions, aimed at ensuring system security and introducing advanced (e.g. predictive) functionalities. This unprecedented combination of interoperable hardware and software enables the building and industrial sectors to move forward in the twin digital and energy transition. In practice, TERA’s Edge Computing solutions are the enabling tools that make it possible to fully enter the Digital Energy era.
Tera Brings Innovative IoT Solutions to Smart Building Levante 2024
We are excited to announce that Tera will participate in Smart Building Levante 2024 , an event of international significance that will be held in Bari from November 14th to 15th . This event is a reference point in the Mediterranean for the 4.0 construction and urban planning sector and for the crucial theme of the digital and energy transition. Smart Building Levante is an opportunity to explore the latest solutions in smart building , automation, and system integration . With three main thematic areas — Home and Building Automation, Security and Safety, Buildings 4.0 and Renewable Energies — the event is a platform for exchanging ideas and innovations that will shape the future of our built environment. Tera's participation in this event underscores our commitment to leading the digital transformation in the energy and construction sectors. We invite all industry operators, partners, and customers to visit our spot to discover how our solutions can make a difference. What to Expect from us Tera, an innovative industry that stands out for the development of IoT edge computers and solutions for smart metering and digital energy , will present cutting-edge solutions that are useful, if not indispensable, for enabling users, primarily businesses, to achieve energy efficiency goals and, more broadly, sustainability objectives: the era of Digital Energy requires us to transform the way we manage and consume energy During the event, Tera will present some of its latest innovations, including: • Updated DCP Software Version : Our free software package, DCP, will be presented with new features that improve integration and efficiency in smart metering systems. • Cloud Management Platform : We are excited to unveil the beta version of our cloud management and dashboarding platform, based on open-source technologies. This solution is designed to be seamlessly integrated with third-party information systems, offering smoother and more centralized management. • Transition 5.0 : We will engage with visitors to focus on the advantages and constraints of the new Transition 5.0 plan, a tool through which the Italian government provides contributions to support the innovation of companies and professionals towards a more sustainable energy future. Event Information • Date : November 14-15, 2024 • Location : Nuovo padiglione Fiera del Levante, Bari, Italy • Event Website : For more information about our participation and to schedule a meeting, do not hesitate to contact us through our website or social media channels. Join us for an experience that promises to redefine the future of building and energy. We look forward to meeting you at Smart Building Levante 2024!
From Digital Energy to Edge Computing: the intelligent evolution of the energy grid
In the landscape of connected and decentralized energy, even the most traditional tools are undergoing transformation. Today, fiscal energy meters are no longer just measuring instruments, but intelligent nodes within an ever-evolving energy ecosystem. Thanks to integration with edge devices, such as our Beeta Readers, it is possible to collect, process, and enhance energy data directly at the point where it is generated, ensuring faster response times, autonomous management, and greater local control of resources. This approach enables users—whether individuals, businesses, or communities—to make more informed decisions and proactively optimize their energy consumption and production. This evolution opens up new scenarios for the dynamic management of energy flows, where data becomes not only a monitoring tool, but an enabler for real-time, localized optimization of consumption and production. 📡 In this context, Renewable Energy Communities (CERs) and Virtual Power Plants (VPPs) find their technological foundation. The ability to accurately monitor energy withdrawals and injections, flexibly aggregate distributed resources, and respond quickly to grid conditions represents a new frontier for efficiency, sustainability, and energy autonomy. What seemed futuristic only a few years ago is now becoming reality, thanks to the convergence of digital energy, edge computing, and artificial intelligence. Tera continues to invest in the research and development of edge-cloud platforms capable of interfacing with existing meters, processing data locally, and contributing to the creation of an increasingly resilient, transparent, and participatory energy network. 🔍 Our CEO, Antonio Sacchetti, discusses this in greater depth in an article featured on pages 36–37 of the digital magazine Smart Building Italia, available at the following link: 👉