SUMMARY IoT (Internet of Things) services are emerging and the bandwidth requirements for rich media communication services are increasing exponentially. We propose a virtual edge architecture comprising computation resource management layers and path bandwidth management layers for easy addition and reallocation of new service node functions. These functions are performed by the Virtualized Network Function (VNF), which accommodates terminals covering a corresponding access node to realize fast VNF migration. To increase network size for IoT traffic, VNF migration is limited to the VNF that contains the active terminals, which leads to a 20 % reduction in the computation of VNF migration. Fast dynamic bandwidth allocation for dynamic bandwidth paths is realized by proposed Hierarchical Time Slot Allocation of Optical Layer 2 Switch Network, which attain the minimum calculation time of less than 1/100.