Abstract: The embodiments herein relate to Machine to Machine (M2M) based systems and, more particularly, to managing application and services data in M2M based systems. The embodiments herein disclose a system and method for managing application and services data in a distributed wireless M2M system. Embodiments disclosed herein disclose direct transport of device configuration rules and processes sensor data to and from a back-end configuration and data management and to-from the sensors via intermediate concentrator devices within the M2M system.