The internet of things is defined as the expanding network of tangible material
that have IP addresses for connection to the web, and the communication that is in–
volved between these internet accessed systems and devices. This concept not only
has the potential to impact how businesses operate but how consumers live as well.
The internet of things expands the linkage of traditional web devices through the inter–
net such as laptops, tablets and smartphones to a wider range of mundane objects that
use technology to communicate and interact with the outside world.
Every IoT device has a sensor, internet connectivity, or processor that collects
data. For example, Sensors are included in devices and systems that protect a person’s
home from burglary. “Smart things is a security system that has open-and-close sensors
that detect whether or not a drawer, window, or door in your home is open or closed.”
(Saint, 2015) The internet connectivity is either inside the IoT device or a base station.
The base station is where data is collected and relayed to the network company such as
Verizon Wireless, Tmobile, and Virgin mobile. Each device also has some computer
powered processor that transmits incoming data.
According to statistics from McKinsey Global Institute, “The Internet of Things
has the potential to generate a global economic impact of somewhere between $2.7 tril-
lion and $6.2 trillion a year by 2025. By 2020 there will be more than twenty six billion
devices connected to the Internet.” According to Forbes, “The arrival of the “Internet of
Things” represents a transformative shift for the economy, similar to the introduction of
the Pc itself.” This will allow for the creation of new business models that could not have
been considered before.
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With the cost of connecting to the internet decreasing, The network is becoming
more available to everyone. Technology costs are decreasing as well, giving opportuni–
ties for companies to create numerous devices with wifi connection. IoT is becoming
more widespread giving people access to information that was not accessible before.
“All these devices are chattering away to each other and creating a mountain of data,
which is why 90 per cent of the world’s data has been created in the past two years
alone.” (Saint, 2015)
There are some advantages and disadvantages to having accessibility to all this
data. Some advantages are energy and cost efficient and smarter analytics. An exam–
ple of how IoT is used for energy efficiency would be a Mars Rover. “NASA may need to
operate for a year unattended using a conservative amount of energy or have the rover
