What is the Internet of Things (IoT)? Meaning & Definition

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You've likely heard the phrase "Internet of Things" — or IoT — at some point, but you might also be scratching your head figuring out what it is or what it means.

What is the Internet of Things?

The Internet of Things, commonly abbreviated as IoT, refers to the connection of devices (other than typical fare such as computers and smartphones) to the Internet. Cars, kitchen appliances, and even heart monitors can all be connected through the IoT. And as the Internet of Things grows in the next few years, more devices will join that list.

We've compiled a beginner's guide of IoT terms and questions to help you navigate the increasingly connected world.

What is an Internet of Things device?

Any stand-alone internet-connected device that can be monitored and/or controlled from a remote location is considered an IoT device. With more smaller, more powerful chips, almost all products can be an Internet of Things devices.

What is the Internet of Things ecosystem?

All the components that enable businesses, governments, and consumers to connect to their IoT devices, including remotes, dashboards, networks, gateways, analytics, data storage, and security is part of the Internet of Things ecosystem.

Other Internet of Things Terms & Definitions:

  • Entity: Includes businesses, governments, and consumers.

  • Physical layer: The hardware that makes an IoT device, including sensors and networking gear.

  • Network layer: Responsible for transmitting the data collected by the physical layer to different devices.

  • Application layer: This includes the protocols and interfaces that devices use to identify and communicate with each other.

  • Remotes: Enable entities that utilize IoT devicesto connect with and control them using a dashboard, such as a mobile application. They include smartphones, tablets, PCs, smartwatches, connected TVs, and nontraditional remotes.

  • Dashboard: Displays information about the IoT ecosystem to users and enables them to control their IoT ecosystem. It is generally housed on a remote.

  • Analytics: Software systems that analyze the data generated by IoT devices. The analysis can be used for a variety of scenarios, such as predictive maintenance.

  • Data storage: Where data from IoT devices is stored.

  • Networks: The internet communication layer that enables the entity to communicate with their device, and sometimes enables devices to communicate with each other.

IoT Predictions, Trends, and Market

BI Intelligence, Business Insider's premium research service, expects there will be more than 24 billion IoT devices on Earth by 2020. That's approximately four devices for every human being on the planet.

And as we approach that point, $6 billion will flow into IoT solutions, including application development, device hardware, system integration, data storage, security, and connectivity. But that will be money well spent, as those investments will generate $13 trillion by 2025.

Who will reap these benefits? There are three major entities that will use IoT ecosystems: consumers, governments, and businesses. For more detail, see the Industries section below.

What are the industries affected by IoT?

While we can expect IoT to affect every industry one way or another, there are several environments within the three groups of consumers, governments, and ecosystems will benefit the greatest from the IoT. These include:

What are the major IoT Companies?

There are literally hundreds of companies linked to the Internet of Things, and the list should only expand in the coming years. Here are some of the major players that have stood out in the IoT to this point:

  • Microsoft (MSFT)

  • Amazon (AMZN)

  • Google (GOOGL)

  • IBM (IBM)

  • Cisco (CSCO)

  • Verizon (VZ)

  • AT&T (T)

  • GE (GE)

  • Fitbit (FIT)

  • Garmin (GRMN)

  • Honeywell (HON)

  • BlackRock (BLK)

What are IoT Platforms?

One IoT device connects to another to transmit information using Internet transfer protocols. IoT platforms serve as the bridge between the devices' sensors and the data networks.

The following are some of the top IoT platforms on the market today:

  • Amazon Web Services

  • Microsoft Azure

  • ThingWorx IoT Platform

  • IBM's Watson

  • Cisco IoT Cloud Connect

  • Salesforce IoT Cloud

  • Oracle Integrated Cloud

  • GE Predix

IoT Security & Privacy

As devices become more connected thanks to the IoT, security and privacy have become the primary concern among consumers and businesses. But it's not slowing IoT adoption; in fact, US smart speaker adoption has grown 54% from December 2017 to February 2018, according to a 2018 comScore survey.

However as more connected devices pop up around the globe, cyber attacks are also a growing threat. Hackers could penetrate connected cars, critical infrastructure, and even people's homes. As a result, several tech companies are focusing on cyber security in order to secure the privacy and safety of all this data.

More to Learn

The Internet of Things (IoT) is growing rapidly as companies around the world connect thousands of devices every day. But behind those devices, there's a sector worth hundreds of billions of dollars supporting the IoT.

Platforms are the glue that holds the IoT together, allowing users to take full advantage of the disruptive potential of connected devices. These platforms allow the IoT to achieve its transformational potential, letting businesses manage devices, analyze data, and automate the workflow.

In a new report, Business Insider Intelligence examines the evolving IoT platform ecosystem. We size the market and identify the primary growth drivers that will power the IoT platform space in the next five years. And we profile many of the top IoT platforms, discussing key trends in the platform industry like platform consolidation.

Here are some of the key takeaways:

  • The IoT platforms market is set to expand rapidly in the years to come, with current leading platforms expanding and others entering the space.

  • We define the key categories into which IoT platforms fall: building block open platforms, closed high-end platforms, and product management platforms.

  • We highlight the ways platforms can help companies reach the full five stage potential of the IoT.

  1. In full, the report:

    • Explains the coming growth of the IoT platforms.

    • Profiles a number of leading platforms.

    • Highlights the central role platforms play in the IoT.

    • Looks to the future of the IoT platforms market.

Capitalize on the intersection of commercial lighting and IoT (MAGAZINE)

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Published on: Sep 12, 2018

By Chuck Piccirillo
Osram Digital Systems

As the IoT establishes itself as the next adaptation in hardware and software applications, CHUCK PICCIRILLO outlines how enabling technology and lighting providers must shift to a new conceptual and development model to ensure their businesses will thrive in the connected spaces market.

The Internet of Things (IoT) and lighting have been living in separate worlds until very recently. Over the past decade, indoor lighting has evolved from traditional incandescent and fluorescent technology into solid-state lighting (SSL) and subsequently connected lighting management systems. Simultaneously, the IoT has established itself as the next technology revolution destined to create a plethora of smart applications that will change the way we work, play, and live. As the number of connected devices reaches an all-time high, these two worlds are coming together in a way that is mutually beneficial.

Lighting is ubiquitous — it’s in every space within a building. It is the perfect conduit for collecting information on what is happening in a building at any given time, because it is ideally located in the space and is connected to a power source. Sensors embedded in luminaires transform light points into data nodes on the lighting network, creating the enabling technology infrastructure for smart building applications and the IoT. As more emphasis is placed on connected spaces, an increasing number of use cases become possible.

This opportunity spawns several questions. What is driving the adoption of smart lighting and IoT? What will the ecosystem look like that moves this market forward? What factors should be considered when choosing a networked lighting control system, and what are the first steps to get started?Smart lighting and the IoT ecosystem

A complete end-to-end IoT solution requires a lot of capabilities, and no one entity can provide this on its own. In reality, IoT solutions will be based on the latest innovations and technologies as well as partnerships and alliances, where each organization contributes its own area of expertise to form a complete solution.

Partnerships are emerging between lighting companies and other technology-based companies — many of which were unlikely before this latest technology revolution. Although still in its infancy, many lighting companies are teaming up with traditional IT organizations, software service providers, and, in many cases, other lighting companies to tackle new and innovative applications.

For example, lighting companies need a cloud infrastructure to store data collected about the space and are forming partnerships with companies like Amazon, Microsoft, Google, etc., which can provide services that connect lighting networks to the cloud.

This begs the question: What do you do with the information that is coming from the lighting network? Software-as-a-service (SaaS) companies are taking information to produce the applications and analytics that are needed for particular smart IoT use cases. Since lighting is everywhere, each light point can provide very accurate data about a specific space within a building and this level of accuracy enhances the analytics capability that SaaS applications require. They can gain granular insights from lighting system data about what is happening in the space.

“Coopetition” in the market is increasing. Lighting manufacturers are seeking out other lighting manufacturers to go to market together with solutions that are mutually beneficial. In this new blended world, previous competitors are now seeing the value of combining products and expertise.

Drivers for adoption of smart lighting

As previously mentioned, lighting is ubiquitous and well-suited for collecting information about activities taking place in a building at any given time. With this as its backdrop, there are other major factors leading to the adoption of smart lighting systems.

Energy and operational savings. According to IBM, the day-to-day operation of a building represents more than 70% of the total cost of that building over its life­span — this includes things like electricity, heating and cooling, water, etc. The immediate impact of IoT in commercial buildings is to lower operational costs, particularly in the form of energy savings. And many building codes, especially in the United States, are being rewritten to address these new cost reduction requirements, another factor driving adoption.

Building efficiencies. By creating a digital version of a building and its internal operations including systems and occupant activities, you can visualize what happens in the building on a day-to-day basis and use those insights to make better decisions. These reports enable facility executives to improve efficiencies while they centrally manage systems in the building or group of buildings.

Occupant health and wellbeing. There has been a shift in recent years toward occupant health and wellbeing and the impact that factors like lighting and room temperature have on productivity and alertness levels. With this in mind, many companies are piloting applications that test how these factors impact their employees’ experiences while at work.

Considerations for IoT deployment

Selecting an infrastructure that will support IoT can be an overwhelming task. There are still many unknowns about what the exact requirements will be, and no one wants to make an investment mistake. However, there a few key considerations when choosing an intelligent lighting system infrastructure as a platform for IoT, which can help future-proof the system.

Be prepared to scale. Choose a software-based, scalable infrastructure that can grow in size and scope, protecting and extending the value of your investment. Software is easy and cost effective to upgrade, and you will not need to rip out and replace expensive hardware as you grow or adjust your space.

Stay flexible and agile. Choose an infrastructure that not only supports change but handles it quickly. Most office space is reconfigured regularly to accommodate employee movement and space adjustments. Chances are you will need to adjust lighting and other smart building applications. You’ll want to manage luminaires and control zones quickly with a few mouse clicks and without rewiring or moving fixtures. And individual addressability of each luminaire will enable you to capture the granular data needed for applications such as predictive maintenance.

Go wireless. Wireless technology has improved drastically over the past five years and it will continue to improve moving forward. In the not-so-distant future, virtually everything will communicate wirelessly including emerging IoT applications that will make your smart building even smarter, so be prepared. The initial technical challenges of deploying wireless have been overcome and now wireless is the connectivity of choice because it costs less to install, is more flexible in retrofit spaces than hard-wired systems, and can be deployed quickly.

Stick with non-proprietary technology. A standards-based, non-proprietary platform is key to enabling the variety and number of potential IoT applications that will surface, including those from startups. Access to a broad ecosystem fundamentally conflicts with a proprietary platform strategy. You don’t want your options to be limited as you roll out specific IoT applications. Your system should have the ability to connect to a range of devices from multiple manufacturers. Pick a solution that allows you to select the right hardware for the space, without being beholden to a specific manufacturer.

The platform needs to connect to the cloud for data storage and SaaS-based applications such as space utilization, asset tracking, conference room and desk bookings, and more. Open, cloud-connected platforms enable more developers to deliver more innovative apps quickly and cost-effectively.

Streamline the user experience. Choose a system that is easy-to-use for both the facility manager and occupants. Additional features and functionality should not translate to additional complexity for facility managers and their operations team. As smart systems evolve, facility managers will be putting more control of the environment into the hands of occupants to support their preferences in their workspaces. A simple user experience is crucial to making the facility team’s tasks manageable.

Put IoT potential to work

IoT brings smart lighting to the next level. Think of it as smart lighting on steroids. While smart lighting brings efficiencies and automation to the lighting system, the addition of IoT tells a broader story about the space, the occupants, and the building itself.

Like any new technology wave, there will be those who take a cautious, slow-roll approach, while early adopters want it deployed everywhere as soon as possible. As the industry grows and matures, more pilots are being deployed to ensure the products of all suppliers involved in an IoT system are compatible for seamless operation.

It depends on the use case, but some pilots can run in as few as two weeks, while a more typical pilot period lasts approximately six months, with many choosing a phased approach versus a full deployment. Once deployed, and depending upon the type of application, the return on investment may be immediate or not too far off in the future.

As the IoT and smart lighting worlds continue to merge, the ecosystem of lighting manufacturers and software providers will continue to expand, bringing unique applications to market that have yet to be imagined. The promise of a new intelligent world is a reality and it starts with smart lighting.

CHUCK PICCIRILLO is head of product – Lighting Networks & Services for Osram. A 19-year veteran of the Osram organization, Piccirillo has served in engineering roles, both managing projects and delivering manufacturing solutions, and later moved into product marketing and business development roles with Osram. He participated in a pre-engineering program with Saint Bonaventure University, received a BS in chemical engineering from Clarkson University, and completed an MBA program with a focus on high tech at the D'Amore-McKim School of Business at Northeastern University. Piccirillo is a member of the Illuminating Engineering Society of North America (IESNA) and is Lighting Certified.