What is the Internet of Things, and why does it matter to IT?

The internet of things provides enterprises with real-time information and business insights that, when implemented, can help them become more productive.

What is IoT?

The internet of things(IoT) is a cluster or network of dedicated devices called ” things ” deployed and utilized to collect and share real-world data through the internet or other networks. The following are some examples of IoT platforms in use:

  • Cardiac patients have a heart sensor inserted after surgery that sends diagnostic information about their hearts to a monitoring physician.
  • Sensors are used in homes to conduct security and home management activities, such as light and appliance control, with status reporting and control performed via smartphone apps.
  • Industrial operations use sensors to detect the presence of hazardous products or unsafe working conditions, as well as to manage personnel mobility within site.
  • Cities deploy a fleet of sensors to monitor road and traffic conditions, dynamically changing a traffic control apparatus to route and optimize traffic based on current conditions.

Key Concepts of IoT

A concentration on real-world facts.

Whereas a business typically works with papers, PowerPoint presentations, photos, videos, spreadsheets, and a variety of static digital information, IoT solutions generate data that usually reflect one or more physical circumstances in the actual world. IoT platforms can assist a business in learning what’s going on and give it control over what’s going on.

Immediacy is critical in real-time operations.

Whereas ordinary data, such as a note document, might linger for days or months without being used, IoT solutions must supply data for collecting and processing as soon as possible. As a result, related issues such as network capacity and connection are crucial in IoT environments.

The resulting information.

The more significant project or commercial goal driving IoT implementation generally defines IoT projects. In many cases, IoT data is part of a control loop with a clear cause-and-effect goal. For example, suppose a sensor detects a homeowner’s unlocked front door. In that case, the homeowner can remotely lock the door using an actuator (an IoT device designed to translate control signals from the network into real-world actions).

Millions of IoT sensors can generate unfathomably large amounts of raw data, far too much for humans to examine and act on. However, IoT solutions can assist with larger and more far-reaching commercial objectives. Large IoT projects are increasingly at the heart of big data endeavors such as machine learning (ML) and artificial intelligence (AI). Data from massive IoT device installations can be processed and analyzed to make critical business projections or train AI algorithms based on real-world data collected from enormous sensor arrays. Computing can be done in centralized data centers, in public clouds, or in a distributed fashion across numerous edge computing locations near where data is collected. This back-end analysis can necessitate a significant amount of storage and computational resources.

How does IoT work?

IoT solutions are a collection of devices, networks, computational resources, and software tools and stacks. IoT solutions do not refer to a specific device, program, or technology. Understanding IoT terminology usually begins with the actual IoT devices.

  • Things: Every Internet of Things device, also known as a thing or smart sensor, is a small dedicated computer with an integrated processor, firmware, limited memory, and network access. The gadget gathers specific physical data and transmits it to an IP network like the internet. Depending on the sensor’s work, it may incorporate amplifiers, filters, and converters. IoT gadgets run on batteries and connect to wireless networks via individual IP addresses. Individual IoT platforms or groups of IoT devices can be configured.
  • Connections: Data from IoT devices must be transferred and collected. The broad network and an interface between the network and back-end processing comprise the second layer of IoT. Typically, the network is an IP-based network, such as an Ethernet LAN or the public internet. Every IoT device is assigned a unique IP address and identity. The device sends data to the network via a wireless interface like Wi-Fi or a cellular network like 4G or 5G. Like any other network device, data packets are labeled with a destination IP address to which the data will be routed and delivered. This type of network data exchange is the same as the regular network data exchange between ordinary computers. This raw sensor data is often sent through an intermediary interface, such as an IoT hub or gateway. The IoT gateway often collects and aggregates raw sensor data, often applying early preprocessing activities such as normalization and filtering to IoT data.
  • Back end: The massive amount of real-time data generated by an IoT platform fleet and collected at the IoT gateway must be processed to give deeper insights, such as exposing business opportunities or driving machine learning. The IoT gateway transfers sensor data that has been cleaned and secured across the internet to a back end for processing and analysis. This back end could be at a company data center, a colocation facility, or a public cloud computing infrastructure. There, the data is saved, processed, modeled, and analyzed. Large computing clusters are used for analysis.


Get inspired by Akenza-powered IoT solutions. In today’s highly volatile technology environment, solutions that enable an agile approach to development and innovation are required.

The possibilities for connecting the world around us are limitless. It is a matter of awareness, expense, and complexity. We are confident that by significantly lowering the work and complexity that businesses face when developing IoT solutions, we will be able to steer the Internet of Things movement toward broad market application.