<p>The internet of things, or <a href="https://www.techtarget.com/iotagenda/definition/Internet-of-Things-IoT">IoT</a>, provides organizations with real-time data and business insights that, when acted upon, can improve processes and operations to be more accurate, efficient and safer. IT administrators, architects, developers and CIOs planning an IoT deployment must clearly understand what IoT is, how it works, its uses, requirements, tradeoffs and how to implement <a href="https://www.techtarget.com/iotagenda/definition/IoT-device">IoT devices</a> and infrastructure.</p>
<section class="section main-article-chapter" data-menu-title="What is IoT and how does it work?">
<h2 class="section-title"><i class="icon" data-icon="1"></i>What is IoT and how does it work?</h2>
<p>IoT is a network of dedicated devices -- called <i>things</i> -- designed to gather and exchange real-world data across networks. These devices work together to collect information, transmit it for processing and enable actions based on that data.</p>
<p><a href="https://www.techtarget.com/whatis/feature/IoT-basics-A-guide-for-beginners">Key concepts of IoT</a> are as follows:</p>
<ul class="default-list">
<li><b>Focus on real-world data.</b> Unlike static digital information -- such as documents and images -- IoT devices produce data reflecting physical conditions in real time, enabling businesses to learn what's happening and exercise dynamic control.</li>
<li><b>Real-time operation.</b> IoT data must be delivered and processed without delay, making network bandwidth and connectivity crucial. Data usefulness is often measured in seconds, especially for medical monitoring and other such critical applications.</li>
<li><b>Data purpose.</b> IoT projects are defined by their business objectives. Often, IoT data forms part of a control loop with cause-and-effect relationships. For example, a sensor detects an unlocked door, and an actuator allows remote locking.</li>
<li><b>Scale and scope.</b> IoT deployments can involve hundreds to thousands of sensors collecting various parameters, such as temperature, pressure or location. These vast data collections often fuel big data initiatives, machine learning (ML) and AI projects.</li>
</ul>
<p>An IoT system includes four basic elements:</p>
<ol class="default-list">
<li><b>Things.</b> Every IoT device -- a thing or <a href="https://www.techtarget.com/iotagenda/definition/smart-sensor">smart sensor</a> -- is a small, dedicated computer with embedded processors, firmware, limited memory and network connectivity. They collect specific physical data, transmit it using networks and typically operate on battery power with unique IP addresses.</li>
<li><b>Connections.</b> Data travels through conventional IP-based networks (Ethernet, internet) using wireless interfaces (Wi-Fi, 5G). <a href="https://www.techtarget.com/iotagenda/definition/IoT-gateway">IoT gateways</a> collect and preprocess raw <a href="https://www.techtarget.com/iotagenda/definition/sensor-data">sensor data</a> through normalization and filtering.</li>
<li><b>Back end.</b> The collected data moves to processing centers (corporate data centers or cloud infrastructure) where it's stored, processed and analyzed using computing clusters.</li>
<li><b>Interface.</b> Although IoT enables automation beyond human capabilities, systems include human interfaces (alerts, dashboards, reports) that let operators monitor and control the IoT infrastructure. For example, a <a href="https://www.techtarget.com/iotagenda/definition/smart-home-or-building">smart home </a>needs an interface that lets the homeowner set the indoor temperature.</li>
</ol>
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<section class="section main-article-chapter" data-menu-title="What are the layers of an IoT architecture?">
<h2 class="section-title"><i class="icon" data-icon="1"></i>What are the layers of an IoT architecture?</h2>
<p>Although the scope and detail of an IoT architectural plan can vary depending on the IoT initiative, leaders must consider how IoT will integrate into the current IT infrastructure.</p>
<p>Depending on the specific model, an <a href="https://www.techtarget.com/iotagenda/tip/A-comprehensive-view-of-the-4-IoT-architecture-layers">IoT architecture can have up to seven major layers</a>. These layers are like the Open Systems Interconnection networking model in that they can be discussed from bottom to top.</p>
<h3>1. Device layer</h3>
<p>This layer includes the devices that convert the physical world into digital data and vice versa through actuators. Devices comprise sensors and actuators that can number hundreds of thousands for an IoT deployment. Each device connects to a network using either wired or, more commonly, wireless connections.</p>
<h3>2. Network layer</h3>
<p>The network layer connects IoT devices and transfers data and commands between devices and computing resources. It includes IoT and network gateways and can also incorporate data aggregation or preprocessing methods, such as edge computing, to minimize the amount of raw data exchanged across the network.</p>
<h3>3. Edge processing (preprocessing) layer</h3>
<p>Large IoT deployments can strain network capacity, and decision-making is often relevant at the edge. Therefore, edge computing is regularly used to collect and preprocess IoT device data, enabling certain compute and analytics operations to be performed locally for greater efficiency instead of sending all raw data back for centralized processing.</p>
<h3>4. Data storage layer</h3>
<p>IoT systems routinely generate massive amounts of raw data. Like other business data, this data becomes a business asset and is subject to storage, security and regulatory considerations, such as retention and proper use policies. The data storage layer manages IoT data's storage, protection, organization and access.</p>
<h3>5. Computing layer</h3>
<p>This layer handles the central processing in IoT deployments. It's where vital IoT data is collected, stored and used for business decisions. Some processing might happen at the edge, where data is first preprocessed, normalized and aggregated. However, more detailed analysis can also occur at the primary data center. Using edge computing to reduce data load enables centralized layers to decrease network traffic and data center resources to focus on more advanced applications.</p>
<h3>6. Application layer</h3>
<p>At the highest level, an application layer handles user interactions, such as device management or environment control. However, the application layer is mainly where a primary data center ingests data delivered from the computing layer and performs detailed analytics and reporting on the IoT data.</p>
<h3>7. Business use layer</h3>
<p>This isn't a technology layer but rather a business strategy stage where business leaders can review performance and assess the value of IoT outcomes to the business. This is where <a href="https://www.techtarget.com/iotagenda/tip/Top-8-IoT-design-principles-for-successful-product-creation">IoT system design</a> and use case must align with the larger business strategy.</p>
<figure class="main-article-image full-col" data-img-fullsize="https://www.techtarget.com/rms/onlineimages/iota-iot_system.png">
<img data-src="https://www.techtarget.com/rms/onlineimages/iota-iot_system_mobile.png" class="lazy" data-srcset="https://www.techtarget.com/rms/onlineimages/iota-iot_system_mobile.png 960w,https://www.techtarget.com/rms/onlineimages/iota-iot_system.png 1280w" alt="IoT system diagram." height="374" width="560">
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<i class="icon pictures" data-icon="z"></i>An example of how an IoT system works, from collecting data to taking action.
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<p>There are four major architectural issues to consider: infrastructure, security, integration, and analytics and reporting.</p>
<h3>1. Infrastructure</h3>
<p>The physical layer includes IoT devices, the network and computing resources used to process data. Infrastructure often covers sensor types, quantities, locations, power, network interfaces and configuration and management tools. Networks must account for bandwidth and latency to handle IoT device demands. Computing handles <a href="https://www.techtarget.com/iotagenda/definition/What-is-IoT-data-analytics">IoT data analytics</a> on the back end, and organizations might need to deploy new resources or use on-demand options, such as the public cloud.</p>
<p>The infrastructure discussion also involves <a href="https://www.techtarget.com/iotagenda/tip/Top-12-most-commonly-used-IoT-protocols-and-standards">choosing IoT protocols</a> and available connectivity standards such as Bluetooth Low Energy (BLE), 5G, Wi-Fi, Zigbee, long-range WAN, <a href="https://www.techtarget.com/whatis/definition/narrowband-IoT-NB-IoT">narrowband IoT</a> and low-power wireless personal area networks.</p>
<h3>2. Security</h3>
<p><a href="https://www.techtarget.com/iotagenda/tip/Explore-the-relationship-between-IoT-governance-and-privacy">IoT data can be sensitive and confidential</a>, such as patient medical telemetry data. Transmitting such data over open networks can expose devices and information to snooping, theft and hacking. Organizations planning an IoT project must consider <a href="https://www.techtarget.com/iotagenda/definition/Internet-of-Things-privacy-IoT-privacy">IoT privacy</a> and the best methods to secure IoT devices and data both in transit and at rest. Encryption is a common approach to IoT data security.</p>
<p>Additional measures should also be implemented on IoT devices to prevent hacking and malicious modifications to device configurations. Security involves a range of software tools and traditional security devices, such as firewalls and intrusion detection and prevention systems.</p>
<h3>3. Integration</h3>
<p>This involves making everything work together seamlessly, ensuring that devices, infrastructure and tools added for IoT can interoperate with an organization's existing systems and applications, such as systems management and ERP. Proper <a href="https://www.techtarget.com/iotagenda/definition/IoT-integration">IoT integration</a> requires careful planning, proof-of-principle testing and a well-researched selection of IoT tools and platforms like Apache Kafka or OpenRemote.</p>
<h3>4. Analytics and reporting</h3>
<p>The highest level of IoT architecture requires a clear understanding of how IoT data will be analyzed and used -- what the business aims to achieve with the IoT system. This is the application layer, which often includes analytical tools, AI and ML modeling and training engines, and data visualization or rendering tools. These tools can be obtained from third-party vendors or accessed through cloud providers where data is stored and processed. Note, though, that <a href="https://www.techtarget.com/iotagenda/tip/IoT-data-visualization-Tips-and-challenges">IoT data visualization comes with its own challenges</a>.</p>
<figure class="main-article-image full-col" data-img-fullsize="https://www.techtarget.com/rms/onlineImages/networking-iot_network_design-f.png">
<img data-src="https://www.techtarget.com/rms/onlineImages/networking-iot_network_design-f_mobile.png" class="lazy" data-srcset="https://www.techtarget.com/rms/onlineImages/networking-iot_network_design-f_mobile.png 960w,https://www.techtarget.com/rms/onlineImages/networking-iot_network_design-f.png 1280w" alt="Diagram of IoT security architecture components." height="336" width="560">
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<i class="icon pictures" data-icon="z"></i>IoT architecture components include the network, communication bus and an analytics and aggregation platform.
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<section class="section main-article-chapter" data-menu-title="Business use cases for IoT">
<h2 class="section-title"><i class="icon" data-icon="1"></i>Business use cases for IoT</h2>
<p>The wide range of small and capable IoT devices has found significant business applications across most major consumer, industrial, medical and government sectors. <a href="https://www.techtarget.com/iotagenda/tip/Top-8-IoT-applications-and-examples-in-business">Consider some of the growing use cases</a> in six key industries.</p>
<h3>1. Smart building automation</h3>
<p><a href="https://www.techtarget.com/iotagenda/tip/IoT-in-construction-Use-cases-benefits-and-challenges">IoT devices appear in construction</a> and facilities for energy management, security and even some task automation:</p>
<ul class="default-list">
<li>Thermostats and lighting can be scheduled and controlled through internet applications.</li>
<li>Motion-activated sensors can trigger video and audio streams to homeowner smartphones.</li>
<li>Water sensors can watch basements or equipment-sensitive areas for leaks.</li>
<li>Smoke, fire and carbon dioxide detectors can report danger to users and first responders.</li>
<li>IoT actuators can lock and unlock doors remotely.</li>
</ul>
<h3>2. Manufacturing</h3>
<p>IoT devices have been broadly <a href="https://www.techtarget.com/iotagenda/tip/Examples-and-use-cases-of-IoT-in-manufacturing">adopted in all manufacturing and industrial settings</a>. Examples of industrial IoT (<a href="https://www.techtarget.com/iotagenda/definition/Industrial-Internet-of-Things-IIoT">IIoT</a>) include the following:</p>
<ul class="default-list">
<li>IIoT tags can track, locate and inventory enterprise assets.</li>
<li>IIoT devices can help monitor and optimize energy use, such as lowering lighting when human-occupied areas are idle or lowering temperature settings during off-hours.</li>
<li>IIoT sensors and actuators can support process automation and optimization.</li>
<li>IIoT devices can monitor all machine behaviors and parameters during regular operation, enabling ML algorithms to guide predictive maintenance to optimize process uptime.</li>
</ul>
<figure class="main-article-image full-col" data-img-fullsize="https://www.techtarget.com/rms/onlineimages/iota-industry_iot_apps.png">
<img data-src="https://www.techtarget.com/rms/onlineimages/iota-industry_iot_apps_mobile.png" class="lazy" data-srcset="https://www.techtarget.com/rms/onlineimages/iota-industry_iot_apps_mobile.png 960w,https://www.techtarget.com/rms/onlineimages/iota-industry_iot_apps.png 1280w" alt="Diagram showing industrial IoT use cases." height="403" width="560">
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<i class="icon pictures" data-icon="z"></i>IIoT is used in many industries and sectors, including robotics, manufacturing and smart cities.
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<h3>3. Public/safety</h3>
<p>IoT sensors with cellular-class connectivity can operate collaboratively across metropolitan areas to serve a wide range of purposes:</p>
<ul class="default-list">
<li>IoT devices can detect the presence of vehicle traffic, enabling cities to adjust street lighting on idle streets and off-hours.</li>
<li>Crime prevention efforts might include camera-based surveillance, while connected audio detection can direct police to areas where gunfire is detected.</li>
<li>Cameras can be used to determine and optimize traffic, while transponders and cameras can read license plates or toll boxes to direct toll collection and management.</li>
<li>Interconnected parking systems enable cities to track parking spots and alert drivers to available spots through an app.</li>
<li>Sensors can watch bridges and other structures for stress and problems, enabling early detection and remediation.</li>
<li>Sensors can monitor water quality, enabling early detection of contaminants or pollutants.</li>
</ul>
<h3>4. Medical/health</h3>
<p><a href="https://www.techtarget.com/iotagenda/tip/Top-9-applications-of-IoT-in-healthcare">IoT is present in remote patient telemetry</a> and other medical uses. Examples of the internet of medical things (<a href="https://www.techtarget.com/iotagenda/definition/IoMT-Internet-of-Medical-Things">IoMT</a>) include the following:</p>
<ul class="default-list">
<li>IoMT exists in countless wireless, wearable devices, including blood pressure cuffs, heart rate monitors and glucometers. Devices can be tuned to track calorie expenditure against exercise goals and remind patients of appointments or medications.</li>
<li>IoMT enables early-warning devices, such as fall detection pendants, that alert health providers and family members and even provide location information for potential issues.</li>
<li>With IoMT's remote monitoring capabilities, health providers can track patient health and adherence to treatment plans and better correlate health issues with telemetry data.</li>
<li>Hospitals can use IoMT to tag and track the real-time location of medical equipment, including defibrillators, nebulizers, oxygen and wheelchairs.</li>
<li>IoMT in staff badges can help locate and direct medical staff more efficiently.</li>
<li>IoMT can help control other equipment, such as pharmacy inventory systems, refrigerator temperatures and humidity and temperature control.</li>
<li>IoMT hygiene-monitoring equipment can help ensure that medical environments are clean and reduce infection.</li>
</ul>
<h3>5. Retail</h3>
<p>IoT and big data analytics have found extensive use in retail sales and physical store environments:</p>
<ul class="default-list">
<li>IoT devices can tag every product, enabling automated inventory control, loss prevention and supply chain management (SCM) so that retailers can place orders based on sales and inventory levels.</li>
<li>Cameras and other surveillance technologies can watch s