Internet of Things (IoT)

The internet of things, or IoT, is a network of interrelated devices that connect and exchange data with other IoT devices and the cloud. IoT devices are typically embedded with technology such as sensors and software and can include mechanical and digital machines and consumer objects.

Increasingly, organizations in a variety of industries are using IoT to operate more efficiently, deliver enhanced customer service, improve decision-making and increase the value of the business.

With IoT, data is transferable over a network without requiring human-to-human or human-to-computer interactions.

A thing in the internet of things can be a person with a heart monitor implant, a farm animal with a biochip transponder, an automobile that has built-in sensors to alert the driver when tire pressure is low, or any other natural or man-made object that can be assigned an Internet Protocol address and is able to transfer data over a network.

How does IoT work?

An IoT ecosystem consists of web-enabled smart devices that use embedded systems -- such as processors, sensors and communication hardware -- to collect, send and act on data they acquire from their environments.

IoT devices share the sensor data they collect by connecting to an IoT gateway, which acts as a central hub where IoT devices can send data. Before the data is shared, it can also be sent to an edge device where that data is analyzed locally. Analyzing data locally reduces the volume of data sent to the cloud, which minimizes bandwidth consumption.

Sometimes, these devices communicate with other related devices and act on the information they get from one another. The devices do most of the work without human intervention, although people can interact with the devices -- for example, to set them up, give them instructions or access the data.

The connectivity, networking and communication protocols used with these web-enabled devices largely depend on the specific IoT applications deployed.

IoT can also use artificial intelligence and machine learning to aid in making data collection processes easier and more dynamic.

Why is Internet of Things (IoT) so important?

Over the past few years, IoT has become one of the most important technologies of the 21st century. Now that we can connect everyday objects—kitchen appliances, cars, thermostats, baby monitors—to the internet via embedded devices, seamless communication is possible between people, processes, and things.

By means of low-cost computing, the cloud, big data, analytics, and mobile technologies, physical things can share and collect data with minimal human intervention. In this hyperconnected world, digital systems can record, monitor, and adjust each interaction between connected things. The physical world meets the digital world—and they cooperate.

What technologies have made IoT possible?

While the idea of IoT has been in existence for a long time, a collection of recent advances in a number of different technologies has made it practical.

• Access to low-cost, low-power sensor technology. Affordable and reliable sensors are making IoT technology possible for more manufacturers.
• Connectivity. A host of network protocols for the internet has made it easy to connect sensors to the cloud and to other “things” for efficient data transfer.
• Cloud computing platforms. The increase in the availability of cloud platforms enables both businesses and consumers to access the infrastructure they need to scale up without actually having to manage it all.
• Machine learning and analytics. With advances in machine learning and analytics, along with access to varied and vast amounts of data stored in the cloud, businesses can gather insights faster and more easily. The emergence of these allied technologies continues to push the boundaries of IoT and the data produced by IoT also feeds these technologies.
• Conversational artificial intelligence (AI). Advances in neural networks have brought natural-language processing (NLP) to IoT devices (such as digital personal assistants Alexa, Cortana, and Siri) and made them appealing, affordable, and viable for home use.

What are the pros and cons of IoT?

Some of the advantages of IoT include the following:

• Enables access to information from anywhere at any time on any device.
• Improves communication between connected electronic devices.
• Enables the transfer of data packets over a connected network, which can save time and money.
• Collects large amounts of data from multiple devices, aiding both users and manufacturers.
• Analyzes data at the edge, reducing the amount of data that needs to be sent to the cloud.
• Automates tasks to improve the quality of a business's services and reduces the need for human intervention.
• Enables healthcare patients to be cared for continually and more effectively.

Some disadvantages of IoT include the following:

• Increases the attack surface as the number of connected devices grows. As more information is shared between devices, the potential for a hacker to steal confidential information increases.
• Makes device management challenging as the number of IoT devices increases. Organizations might eventually have to deal with a massive number of IoT devices, and collecting and managing the data from all those devices could be challenging.
• Has the potential to corrupt other connected devices if there's a bug in the system.
• Increases compatibility issues between devices, as there's no international standard of compatibility for IoT. This makes it difficult for devices from different manufacturers to communicate with each other.