“If we had computers that knew everything there was to know about things—using data they gathered without any help from us -- we would be able to track and count everything, and greatly reduce waste, loss and cost. We would know when things needed replacing, repairing or recalling, and whether they were fresh or past their best. ” Kevin Ashton, RFID Journal, June 2009. (Ashton, 2009)

 Internet began as a network of networks, connecting various academic, government, and private computers together to share data. Data availability on the Internet, however, depends on human beings creating, capturing and delivering the proper data (e.g., typing or scanning documents, recording voices and videos, taking digital pictures).  Unfortunately, humans are not very good at providing data at proper time, rate, and quality in the desired accuracy. 

Over the past two decades, and due to the advancement in wireless connectivity, sensors and process performance, cloud computing, and application development, remote and mobile, "things" (e.g., household appliances or vehicles that have built-in sensors, medical devices implanted in patients) have the ability to network with Internet resources or even with each other, to make use of data and services and update their states.

"More things are connecting to the Internet than people — over 12.5 billion devices in 2010 alone." Cisco’s Internet Business Solutions Group (IBSG) predicts some 25 billion devices will be connected by 2015, and 50 billion by 2020. (Cisco, 2011)

This is known as Internet of Things (IoT).  Internet of Things is the network of physical objects that communicate, sense, or interact (via sensors, actuators, or other embedded technologies) in order to gather, analyze, and distribute data that can be turned into information and, hence, knowledge.  IoT encompasses hardware (the things themselves), embedded software, communications services and information services associated with the things.

 "The growth in IoT will far exceed that of other connected devices. By 2020, the number of smartphones tablets and PCs in use will reach about 7.3 billion units," said Peter Middleton, research director at Gartner. (Gartner , 2013)

 Most businesses and service providers will benefit from the IoT technologies, in that their facilities and services will operate more efficiently through the use of information that are generated and provided by their products, assets, or the operating environment, which can enhance decision making significantly. This information can also be used for improving products and services automation and control, which can optimize resource use and raise productivity.

References

Ashton Kevin That Internet of Things Thing: In the real world, things matter more than ideas [Online] // RFID Journal . - Jun 22, 2009. - http://www.rfidjournal.com/articles/view?4986.

Cisco The Internet of Things [Online] // Cisco Visualizations. - 2011. - http://share.cisco.com/internet-of-things.html.

Gartner Gartner Says the Internet of Things Installed Base Will Grow to 26 Billion Units By 2020 [Online] // Press Release. - December 12, 2013. - http://www.gartner.com/newsroom/id/2636073.