Source: "Kevin Ashton, a British technology pioneer who co-founded the Auto-ID Center at MIT, which created a global standard system for RFID and other sensors, coined the phrase "Internet of Things" back in 1999. His Internet of Things (IoT) is a system where the Internet is connected to the physical world via ubiquitous sensors. And sensors can be any device that gathers data and reports that data to a data collection facility such as a data warehouse, a database, or log server.
IoT isn't just a fancy buzzword that describes how your refrigerator can let you know when you need to replace your spoiling milk or your rotting vegetables (although it can), it is so much more. How much more is only left to your imagination and to your budget. You can do as little or as much with IoT as you want. For example, if you operate food distribution business, you could install sensors in your trucks that send temperature, humidity, and dock-to-dock travel times back to your home office for analysis. You can also more accurately track the exact expense required to deliver each food product or container to the customer.
The Internet of Things is not just about gathering of data but also about the analysis and use of data."