Along with recently announced Azure IoT Edge, we have also provided support for running Functions on the IoT Edge devices. This functionality allows developers to utilize the uniquely productive programming model provided by Functions even on the devices which may or may not be connected to the cloud. This functionality can be used in multiple scenarios such as performing custom processing on data coming from sensors, or filtering the incoming signals based on certain criteria. All of these scenarios which are today possible in the cloud, can now be really easily replicated on IoT Edge devices too. Please read this blog for more details.
Source: Azure Roadmap