What is the Internet of Things (IoT)?

The Internet of Things (IoT) describes the network of physical objects—“things”—that are embedded with sensors, software, and other technologies for the purpose of connecting and exchanging data with other devices and systems over the internet.

With more than 7 billion connected IoT devices today, experts are expecting this number to grow to 10 billion by 2020 and 22 billion by 2025. Oracle has a network of device partners. These devices range from ordinary household objects to sophisticated industrial tools.

What Technologies Have Made IoT Possible?

While the idea of IoT has been in existence for a long time, a collection of recent advances in a number of different technologies has made it practical.

• Connectivity: A host of network protocols for the internet has made it easy to connect sensors to the cloud and to other “things” for efficient data transfer.
• Access to low-cost, low-power sensor technology: Affordable and reliable sensors are making IoT technology possible for more manufacturers.
• Cloud computing platforms: The increase in the availability of cloud platforms enables both businesses and consumers to access the infrastructure they need to scale up without actually having to manage it all.
• Conversational artificial intelligence: Advances in neural networks have brought natural-language processing (NLP) to IoT devices (such as digital personal assistants Alexa, Cortana, and Siri) and made them appealing, affordable, and viable for home use.
• Machine learning and analytics: With advances in machine learning and analytics, along with access to varied and vast amounts of data stored in the cloud, businesses can gather insights faster and more easily.

Why Is Internet of Things (IoT) so important?

By means of low-cost computing, the cloud, big data, analytics, and mobile technologies, physical things can share and collect data with minimal human intervention. The physical world meets the digital world—and they cooperate. In this hyperconnected world, digital systems can record, monitor, and adjust each interaction between connected things.

Now that we can connect everyday objects—kitchen appliances, cars, thermostats, baby monitors—to the internet via embedded devices, seamless communication is possible between people, processes, and things. Over the past few years, IoT has become one of the most important technologies of the 21st century.