What is Internet of Things (IOT)?

Have you heard the word Internet of Things (IOT) let’s explore.

The Internet of Things or IOT, refers to the billions of physical devices around the world that are now connected to the internet, collecting, sharing and analyses of data.

 Thanks to cheap processors and wireless networks, it’s possible to turn anything, from a pill to an airplane to a self-driving car into part of the Internet of Things or IOT.


The Internet of Things is the network of physical devices that combine IP connectivity with software, sensors, actuators, and other electronics to directly integrate the physical world into our computer-based systems, resulting in efficiency improvements and economic benefits.

Simpler Definition

The Internet of Things is a network of Internet connected devices that communicate embedded sensor data to the cloud for centralized processing.


The Current and Future Impact of Internet of Things (IOT)

The IEEE has compiled data and makes the following claims about its current and future impact:

  •  In 2015, the global wearables market had already increased 223% from the previous year (and data on Statista shows it increasing by another 243% between 2015 and 2022)
  • By 2020, 250 million vehicles will be connected to the Internet
  • IOT will add 15 trillion dollars to the global economy over the next 20 years
  • There will be 50 billion Internet-connected devices by the year 2020.

Benefits of IOT

The interconnection of these multiple embedded devices will be resulting in automation in nearly all fields and also enabling advanced applications. This is resulting in improved accuracy, efficiency and economic benefit with reduced human intervention. The major benefits of  Internet of Things or  IOT are:

  • Improved Customer Engagement
  • Technical Optimization
  • Reduced Wastage
  • Integrate and Adapt Business Model
  • Better Business Decision

IOT Enabling Factors

  • Miniaturization
  • Connectivity
  • Advanced power sources and power management
  • Inexpensive processors, sensors, and actuators
  • Cloud-based processing
  • Ubiquitous computing

Components of Internet of Things (IOT) architecture

Components of Internet of Things (IOT) architecture image

End-to-end Internet of Things (IOT)

End-to-end IoT
End-to-end IoT

Example Internet of Things (IOT)  Devices

Example IoT Devices
Example IoT Devices

Software Required For Internet of Things (IOT)  

Software Required For IOT
Software Required For IOT

Future of Internet of Things (IOT)

  • 9 billon devices around the world are currently connected to the internet, including computer and smartphones.
  • The number is expected to increase dramatically within the next decade, with estimates ranging from 50 Billion devices to reaching 1 trillion.
  • The Internet of things (IOT) has the potential to create economic impact of $2-7 trillion to $6.2 trillion annually by 2025.

Internet of Things (IOT) Example: The Refrigerator

A refrigerator is just a thing, so it can be anything besides a computer. If it’s a computer, we’re not calling that a thing, but anything besides a computer. Now the next thing you do is you add to that some type of computational intelligence (Micro controller). So that’s intelligent refrigerator. But maybe you wouldn’t call that Internet of Things, because it’s not actually networked yet. Then, to top it off, you add Internet connectivity. It’s got some kind of computation inside and it’s got a network connection which means it can use all sorts of other resources that are not local.

IOT Example: What the IOT Refrigerator can do

You can have IOT fridge detect that you are low on butter and then just order that, and then the next morning, butter will appear on your doorstep. You can search for low food prices. Give you a good idea for food for you tomorrow is this type of meal that you’ve had in the past. IOT device should have a simple interface, have computational intelligence and be connected to the internet.

IOT Devices vs Computers

IOT Device has a main function separate from Computation

  • Cars drive, Phone make calls, TVs displays shows
  • Computation is a means to an end Computers main function is to compute, they are general purpose machines IOT Devices are Special Purpose Devices, software and hardware are efficient for the task – but inefficient for other tasks

Technological Trends that lead to Internet of Things (IOT)

  • Cost of hardware has decreased allowing to be added to devices
  • Smaller size and lesser weight needed to incorporate computation into devices
  • Computation ability has increased tremendously
  • Internet is available everywhere
  • Wireless Access (4G, Wi-Fi) has become cheap and ubiquitous, 5G on the way (No physical cables required)
  • Data transmission cost is fairly low, internet bandwidth is high
  • Cloud computing is being used extensively (IOT devices are a window to these cloud services)
  • Rise of Open Source Software (Rust, Web Assembly, Docker, Kubernetes, etc.)

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