Resource‐intensive real‐time IoT and 5G network applications require low latency, high data rates, and considerable computing and storage resources. Mobile cloud computing systems cannot fulfill the requirements of these applications due to high communication latency. Consequently, recently proposed edge computing implementations require adding new infrastructure or updating existing infrastructure. In addition, edge computing does not exploit the capabilities of end devices, which have become more powerful than supercomputers in the last decade. To overcome the drawbacks of mobile cloud and edge computing systems, we have proposed a private mobile edge cloud in which multiple mobile and stationary devices such as sensors, robots, home appliances, and smartphones, interconnected through infrastructure‐less and infrastructure‐based wireless local area networks are combined to create a small‐scale cloud data center at a local physical area such as a home. We have also discussed opportunities and research challenges associated with development of proposed system and a high‐level architecture based on a cross layer design for an efficient management of resources.