What is IoT? - Explanation & Meaning

Definition

The Internet of Things (IoT) refers to the network of physical devices — from sensors and actuators to vehicles and household appliances — that are connected to the internet and can collect, exchange, and process data.

Technical explanation

IoT systems consist of four layers: the device layer (sensors, actuators, embedded systems), the connectivity layer (Wi-Fi, Bluetooth Low Energy, LoRaWAN, NB-IoT, 5G), the platform layer (data ingestion, storage, and processing via IoT platforms such as AWS IoT Core, Azure IoT Hub, or open-source alternatives like ThingsBoard), and the application layer (dashboards, analytics, automation). In 2026, an estimated 30+ billion connected IoT devices exist worldwide. Industrial IoT (IIoT) applies IoT in manufacturing, logistics, and energy with emphasis on reliability and safety. Digital twins — virtual replicas of physical assets — are fed by real-time IoT data and enable companies to simulate scenarios and predict maintenance needs. Edge computing processes IoT data locally to reduce latency and save bandwidth. MQTT and AMQP are the standard communication protocols for lightweight messaging between IoT devices. Security is critical: IoT devices are often vulnerable due to limited compute power for encryption and infrequent firmware updates.

How MG Software applies this

At MG Software, we develop IoT dashboards and platforms that allow clients to monitor their connected devices, visualize data, and set up automation rules. We integrate IoT data with existing business systems and build alerting systems for predictive maintenance.

Practical examples

• A manufacturing company placing IoT sensors on machines to monitor vibrations, temperature, and energy consumption, reducing unexpected downtime by 65% through predictive maintenance.
• An agricultural business using IoT sensors in soil and irrigation systems to measure moisture levels, pH values, and nutrients in real-time and automatically adjust irrigation, resulting in 30% water savings.
• A logistics company placing GPS trackers and temperature sensors on refrigerated trucks to monitor the cold chain in real-time and automatically trigger an alarm when temperature falls outside the safe range.

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