IoT ecosystem is a complicated setup of many devices and components connected all together. The transfer of data from one end to the other end in this ecosystem is quite long also.
In order to understand this sophisticated network, we decompose the entire communication in five specific layers.
Perception Layer: This is the first layer of the IoT architecture. At this layer, perception of IoT devices and machines is made that is why the layer is named like this. Sensors are to sense some real world data and Actuators are to put some components in motion. Perception Layer is understood as a layer to work with these two major components of IoT ecosystem.
Network Layer: Network Layer is there to showcase what the networking technologies are working in order to deliver the messages timely and safely. All the networking technologies like 3G/4G/WiFi/Infrared etc work at this layer.
Middleware Layer: As its name suggests, Middleware layer works at absolute core of this ecosystem. It showcases the working of cloud mechanism and the data-centres spread all around the world. These data centres let a user get appropriate data on demand and that too in an analyzed and processed form.
Application Layer: Application layer is just the layer through which a user interacts with this system. The website/smart-phone apps and all other user interactivity platforms are here. Notifications, alarms etc are the most common ways to get the user updated with the happenings. We can say that User Interface (UI) works at this layer.
Business Layer: Business layer is just to show how this IoT ecosystem can bring betterments to the businesses and society. Graphs, charts, analysis of data etc. are done at this layer.