This research paper investigates the application of IoT networks in diverse environments, specifically focusing on terrestrial and underwater (acoustic) settings. The study employs LZW data compression techniques within both terrestrial and acoustic IoT networks. The analysis is conducted using the NetSim simulator, evaluating critical routing parameters such as routing overhead, throughput, and end-to-end delay. Additionally, the study extends its analysis to encompass an IoT model, ensuring a comprehensive evaluation of the network's performance. The chosen communication protocols for both environments include MQTT, CoAP, and Machine-to-Machine (M2M). Through rigorous simulations and comparisons, the research aims to discern and understand the distinct characteristics and challenges presented by each environment. By scrutinizing the efficiency and efficacy of LZW data compression in these contexts, the paper contributes valuable insights to the optimization of IoT networks. The findings of this comparative analysis shed light on the fine dynamics of IoT networks in terrestrial and acoustic environments, providing a foundation for future advancements in the field.