https://www.techtarget.com/whatis/feature/IoT-basics-A-guide-for-beginners
IoT stands for the internet of things. Most simply, it refers to physical objects linked through wired and wireless networks. More specifically, it refers to the collection of internet-connected devices that can communicate autonomously over the internet, without needing a person to initiate communication.
You might be asking, how is this different from the internet, as most people commonly understand the term? Well, it really isn't that different -- it's just a way of talking about the internet with a specific focus on things instead of people.
Let's delve into the basics of IoT, why it is important and applications of the internet of things in business and the consumer space.
Consultancy McKinsey & Company offered this basic description of IoT: "Sensors and actuators embedded in physical objects are linked through wired and wireless networks, often using the same Internet Protocol (IP) that connects the internet."
Kevin Ashton, who coined the term internet of things, preferred the term internet for things. While not widely used, this term provides a helpful way to understand the concept behind IoT. Think of the "normal" internet you access from your PC or smartphone as the internet for people and IoT as an internet of interrelated computing devices, mechanical and digital machines, objects, etc.
The internet of things is everywhere. It is used in a range of industries and has both corporate and consumer uses. Today, for example, automobiles often have dozens of sensors that collect and transfer data for safety, maintenance, entertainment, fleet management and other purposes. These internet-connected cars are considered part of the internet of things because they communicate with other devices over the internet based on input from the environment, not just from direct human manipulation.
The history of the term internet of things traces back to 1999, when it was coined by Kevin Ashton, co-founder of the Auto-ID Center at the Massachusetts Institute of Technology. Ashton, who was working on supply chain optimization for Procter & Gamble, first used the term in a presentation about radio frequency identification, i.e., RFID.
The term internet of things didn't go mainstream until approximately 2010, however. The emergence of Google's Street View is partly behind the popularization of the term. Street View provided end users with 360 pictures of the world from street-level and stored large quantities of data on end-users' wireless networks. This got people speculating that Google's long-term goal was to index the physical world as an internet of things -- as well as the internet.
The concept behind the internet of things -- that is, the idea of internet-connected devices -- existed decades before Ashton gave the concept its name. In the past, the industry commonly referred to this concept as the embedded internet or pervasive computing, with Intel driving the former label until it became clear the term IoT was prevailing in the public's eye.
One notable example of IoT that preceded the term was a modified Coca-Cola vending machine that became the first internet-connected appliance in 1982. The machine, which was located at Carnegie Mellon University, reported its inventory and whether the drinks it contained were cold.
In 1994, IEEE Spectrum magazine described the concept of "moving small packets of data to large sets of nodes," with the goal of integrating and automating everything from home appliances to entire factories. IoT in all but name.
IoT works through a combination of wireless networking technology, physical devices, advanced data analytics and cloud computing. The basic process of how IoT works is as follows:
For example, this process applied to a smart thermostat would go like this:
Learn how smart hospital rooms work and some of their key IoT elements.
There are four pillars of IoT:
Closely related terms anyone getting acquainted with the concept of IoT should be aware of include the following:
Specific types of IoT and its applications include:
The internet of things' most immediate business benefit is helping enterprise organizations learn more about -- and thereby improve -- their own internal processes and structure to ultimately provide better products and/or more effective services. IoT increases the number and types of places enterprises can autonomously retrieve data from, providing much more information to work with. It also enables internal systems to become more responsive.
The main benefit of IoT for consumers is convenience and ease of use, which is not trivial in the case of a healthcare device, for instance. As IoT continues to grow and infiltrate the public sphere, more tangible and social benefits might be realized, such as the following:
The massive amount of data that IoT networks and smart cities could create has the potential to give people new insights into areas previously limited by the amount of real-time data available. Whether in business or for consumers, some benefits of IoT technology include the following:
Learn more about the growing optimism surrounding IoT and AI integration.
Despite its potential, IoT faces several challenges.
Oftentimes, IoT devices are meant to automate processes. Humans might neglect to properly configure, maintain or secure these devices because they are designed for automation -- to leave the human out. For example, an administrator of an IoT device such as a smart camera is more likely to neglect to change the default password set by the manufacturer. The result is an external-facing IoT device with a simple default password to crack.
There are also concerns about data privacy and governance as IoT becomes more prevalent. With more networked devices sharing data autonomously, being accountable for all that data becomes more complicated. For example, smart lightbulbs might require login credentials and a connection to a local network. Smart cars often collect a diverse array of data, including location, driving behavior and biometric data. Connected medical devices collect a trove of sensitive patient data. How this data is collected, stored, communicated and used is an issue organizations must be aware of.
IoT devices -- especially those used in industrial, medical, transportation and infrastructural applications -- are often tasked with jobs that, if performed incorrectly, could put lives at risk. If a smart car's warning system malfunctions, it could cause the driver to neglect an obstacle or a pedestrian. A malfunctioning sensor at an industrial plant can be catastrophic if a key warning sign is missed.
Many IoT devices have unique protocols, data formats or proprietary services that they run on, making standardization across devices and providers difficult. This can make data sharing and compatibility between different devices from different vendors a challenge.
Heavy metals used in many IoT devices make them difficult to manufacture, dispose of and recycle without substantial environmental and human costs. Some IoT vendors might also intentionally brick -- or render useless -- their products by disabling proprietary services that their devices need to run.
On the flipside, learn how IoT monitoring and detection can play a significant role in achieving environmental, social and governance goals.
IoT technology can be applied across a diverse array of industries.
IoT devices can perform medical data collection, monitoring and analysis. Sometimes referred to as smart healthcare, IoMT aims to create a digitized healthcare system that connects medical resources and healthcare services.
Some example IoT applications in this field include the following:
Discover more about IoT and healthcare with this in-depth guide.
The military uses smart technology and IoT to prepare for warfare and to conduct surveillance and reconnaissance. Examples include smart drones and the DARPA (Defense Advanced Research Projects Agency) Ocean of Things project, which aims to establish a network of passive sensors at sea to record the presence and activity of military and commercial vessels.
IoT in the industrial and manufacturing sector aids in various sensing, identification and communication processes in the factory and elsewhere. For example, digital control systems can automate these processes and help optimize plant safety, security and efficiency.
Explore ways IoT is transforming manufacturing.
Retailers and distributors use smart packaging with a QR code or NFC tag that contains a unique identifier and digital information about products to enable digital interactions. Similar technology has been used during the COVID-19 pandemic to enable contactless interaction with publicly used objects, such as restaurant menus or smart water fountains.
IoT devices can be used in public infrastructure. Some examples include the following:
Learn how AI and IoT are reshaping agriculture.
Smart homes and wearable devices are two common examples of IoT in the consumer market.
Smart homes often include smart devices and appliances, such as thermostats, lighting fixtures, cameras, security systems and toothbrushes. They are linked via a home network and might link out to other external networks. A smart electronic toothbrush can transmit data about a user's brushing habits to their dentist to help provide more appropriate care, for example.
Users might control some of these devices and systems through smart speakers such as Amazon Echo and Google Nest or a smartphone app. For instance, a user can use their smartphone to change the color of a smart lightbulb. Through voice assistants, smart home devices can also assist those with mobility and sight limitations to control smart appliances that would otherwise be difficult to access and manage.
Wearable IoT devices such as Apple Watches and Fitbits use sensors to collect biometric data about a user for insights to improve physical health.
Ben Lutkevich is site editor for Informa TechTarget Software Quality. Previously, he wrote definitions and features for Whatis.com.
28 May 2025