The Internet of Things (IoT) is a network of interconnected products, or "things," that are embedded with sensors, algorithms, and other technologies in order to connect and interchange information between devices and applications over the World wide web. The internet of things, or IoT, is a system of interconnected computing devices, network of physical objects machinery, things, vehicles, and humans with unique identifiers (UIDs) and the ability to transfer information without necessitating human-to-human or human-to-computer communication.

The possibility of embedding sensors and intelligence into everyday items was explored all throughout 1980s, but advancement was slow due to technological limitations. Aside from a few early projects, such as an internet-connected vending machine, advancement remained modest. Processors were too large and bulky, and things couldn't communicate efficiently. With just-in-time delivery of materials and production scheduling from start to finish, the influence may be significantly higher if implemented across an entire supply chain rather than just individual enterprises. Increased workforce efficiency and cost savings are two possible objectives, but the IoT can also open up new market opportunities for enterprises; instead of just selling a standalone commodity, such as an engine, manufactures can also provide engine maintenance schedules.

Because of the massive amounts of information generated by IoT applications, many organizations will choose to handle their data on the cloud rather than build large amounts of in-house infrastructure. These businesses are already being approached by cloud computing behemoths: Microsoft provides its Azure IoT suite, while Amazon Web Services and Google Cloud also provide a variety of IoT services.