On November 3, 2015, I will give a presentation at the Embedded Conference Scandinavia about simulating IoT systems. The conference program can be found at http://www.svenskelektronik.se/ECS/ECS15/Program.html, with my session detailed at http://www.svenskelektronik.se/ECS/ECS15/Program/IoT%20Development.html.
My topic is how to realistically simulate very large IoT networks for software testing and system development. This is a fun field where I have spent significant time recently. Only a couple of weeks ago, I tried my hand simulating a 1000-node network. Which worked! I had 1000 ARM-based nodes running VxWorks running at the same time, inside a single Simics process, and at speeds close to real time! It did use some 55GB of RAM, which I think is a personal record for largest use of system resources from a single process. Still, it only took a dozen processors to do it.