Demystifying Tech Buzzwords: Week 2 - Internet of Things (IoT)

Inter·net of things or (IoT) - a proposed development of the Internet in which everyday objects have network connectivity, allowing them to send and receive data.

Last week Josh explained what the Cloud is and how it will impact SMB businesses in the coming years.  This week I’m going to dig into the term “Internet of Things” (IoT).  I will explain in laymen’s terms what the heck it means and why it matters to SMB’s moving forward.

The IoT is way bigger than any of us realize.  Broadband internet is becoming more widely available, the costs of connecting are decreasing and more and more devices are being manufactured with Wi-Fi capabilities and sensors built into them than ever before.  All of these things are coming together to create the “perfect storm” for the explosion of the IoT.

What is it?

In its simplest form the “Internet of Things” (IoT) is machine-to-machine communication over the internet.  However the IoT cannot exist without Cloud based applications in place to interpret and transmit the data.  The Cloud is what enables all these apps to work for you anytime, anywhere.  The interwebs enable us to email, instant message, video call and stay connected in both our personal and professional life from all over the world through a multitude of devices.  In the same fashion it also allows devices to transfer information back and forth to each other as long as the device is connected to the internet. 

How will it impact you?

The rise of the IoT will enable companies of all shapes and sizes in virtually every industry in the world to track all sorts of data.  This will then enable these companies to translate this data into useful, actionable intelligence that can help drive smarter business decisions.  It can also help get them in front of new customers, uncover new market segments, product and service ideas as well as reveal new innovative iterations to their business model.  

The defacto standard moving forward will be “anything that can be connected, will be connected”.  The IoT can be applied to a multitude of devices.  From cars, to bridges, to coffee makers to office equipment.  It can be applied to transportation networks and energy grids and can help us all better understand how we work and live.  The possibilities are endless and the opportunities are infinite.  The only thing left to worry about is security.  Ha! We will leave that topic for another post!  Thanks for reading.  Next week Josh will talk about Big Data!