According to Gartner, the Internet of Things (IoT) is the network of physical objects that contain embedded technology to communicate and sense or interact with their internal state or their external environment.

That’s a lot to take in, but what does it actually mean? The Internet of Things is about connected sensors and devices that capture, transmit, and analyze data to deliver value to the customer.

These devices are also known as “things,” hence the name Internet of Things (IoT). Some devices are connected to people (such as smartphones), but in IoT, many devices connect directly to other devices and operate without human oversight or intervention.

Example to Understand the Meaning of IoT

Imagine you operate a cold-storage facility and the outside temperature rises on a scorching day. Sensors and control systems can monitor both the cold-storage unit and the ambient temperature and automatically adjust the setpoints to keep the area properly chilled. This is handled by the devices and systems themselves rather than requiring a person to make manual changes.

IoT is also widely used in utilities, power plants, factories, and physical security to keep buildings and premises safe.

We are seeing rapid growth in building automation, manufacturing, and automotive applications as well.

IoT Meaning and Edge Computing

Let’s look at centralized versus edge computing. According to Gartner, edge computing is a distributed computing model in which information processing is located close to where people or things produce or consume that information.

Edge computing means data is processed near the point of capture. For example, an autonomous vehicle collects and processes critical information on board and in real time, rather than sending everything to the cloud, because the vehicle is moving at speed and requires fast response times.

We also need to consider risks such as privacy and security with IoT in general. Even so, there are significant advantages for businesses, including detecting damage or theft on their premises and improving operational efficiency by reducing excess inventory.

Internet of Things Creates Business Opportunities

IoT can create new business opportunities for products and services. Significant cost savings can be realized through predictive maintenance for plant and machinery, reducing unplanned downtime. You can also increase asset utilization by minimizing idle time.

Finally, software and firmware updates can be pushed to devices to keep them running smoothly. If you want to learn more about emerging technology or digital transformation, contact [email protected]. And remember: digital transformation is about more than technology—it’s about leaders with the foresight to anticipate change and the courage to reinvent their organizations before circumstances force them to.