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Yes, a windows service would be fine. I’d like to use a little library called TopShelve to make a service / console app. Then I’d add NancyFx to expose the service and it’s data (or read it from a shared database).
You also asked if there was a ‘better’ way. You might argue that polling all the IoT devices isn’t a good idea (you might use too many resources). Let them broadcast their reading (when they see fit) to a message queue (most of those little devices like to use MQTT). Then your application should only subscribe to the desired queues and process the data when needed.
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solved Port reading application in .Net which is better Windows service or Windows application