Internet of Things (IoT)

The Internet of Things (IoT) refers to devices that sense or manipulate some part of the physical world and are connected through the Internet. By virtue of their being networked, these devices can share information and data, and enable new applications and business models.

The term Internet of Things (IoT) encompasses three components: physical devices, networks, and data. When these three elements are combined so that devices can communicate sensor data and interact with other systems though the Cloud, that's the Internet of Things.

Central to the idea of the IoT is the notion of connecting to the Cloud devices which are not traditionally networked or smart. Computers, tablets, and phones are not IoT 'things', but pretty much everything else can be once it's connected.

Here's an example: a connected scooter. Cellular technology allows the scooter you're about to ride to receive a message from your phone to unlock itself. Sensors in the scooter track your ride. When you've reached your destination, the on-board microcontroller detects that the scooter has been parked sends the ride information to the cloud so that you can be billed for your journey and the system knows the scooter is now ready for another rider. Maybe it even sends an alert that its sensors have detected that the tyres are wearing thin.

A non-example — something that is not considered IoT — would be several computers sharing an Internet connection via a local area network.