In the modern life, machines are used for various areas in industries as the advance of science and industrial development has proceeded. In many machines, the rotating machines play an important role in many processes. Therefore, the development of fault diagnosis and monitoring system for rotating machines is required. An ubiquitous sensor network (USN) is a combination of the key computer science and engineering area technology including the wireless network, embedded system hardware and software, communication, real-time system, etc. It collects environmental information to realize a variety of functions. In this work, a data reduction algorithm for USN based remote fault diagnostic system which can be easily applied to previously built factories is proposed. To verify the feasibility of the proposed scheme, some simulations and experiments are executed.