More than 7 billion devices are connected via IoT today, and this number can go over 42 billion by 2025.

But what is this IoT? Why should it matter to a business? How is it implemented, and how is it going to impact all our lives? Let’s find out.

What is the Internet of Things (IoT)?

When different things or objects can connect and send and receive data without any human intervention through the internet, it is known as the Internet of Things.

The fitness band you are wearing that tracks your steps and measures your heart rate? That is a device connected by the IoT.

IoT has become one of the most critical technologies of the 21 st century because it can connect lifeless things to each other, and those objects can communicate with each other seamlessly.

How does IoT work?

The internet of things is possible because of many other technologies behind it:

  • Affordable and reliable sensors – to track the device movements or actions and collect data from them
  • Internet connectivity – enabling data transfer from the devices/sensors to the cloud
  • Cloud computing platforms – provide a reliable infrastructure that can also scale up without any complications
  • Machine learning and Big Data Analytics – Sensor technologies, the internet, and cloud computing produce a huge amount of data when connected. But businesses need to get insights and make data-driven decisions. That’s where machine learning and analytics come into play.
  • Artificial intelligence – No one today doesn’t know Alexa, Siri, Cortana, right? All these IoT devices exist because of the NLP technology (Natural Language Processing), which is an advanced form of artificial intelligence.


Devices and objects have built-in sensors connected to an Internet of Things platform ( mostly on the cloud). The platform collects a lot of information from different devices and integrates it in a single place. It also gives valuable insights via analytics that help in making business decisions.


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