IoT: Anything that can be connected, will be connected.

The Internet of Things (IoT) is happening now!

The new wave of connectivity is going beyond laptops, i-pads and smartphones, and also includes connected homes, cities, connected cars, wearable’s, and healthcare devices. Basically, our entire lives will be connected, promising a progressive, fully connected “smart” world as the relationships between people, devices, and the environment becomes more entwined. The "Internet of things" (IoT) is a conceptual framework that has the potential to impact how we live our day today lives. It is becoming an increasingly hot topic of discussion. But what exactly is the "Internet of things”?

IoT can be referred to as a network of physical devices that are embedded with software and sensors which gives them the ability to collect and transmit data to other devices over the internet. It adds a level of digital intelligence to devices that would otherwise be dumb, enabling them to effectively merge the digital and physical worlds. Consumer products, cars and other automobiles, industrial and utility components, factories and other everyday objects are being combined with Internet connectivity and powerful data analytic capabilities that promises to transform the way we work and live today.

Different organizations have developed their own classifications and categorizations of IoT applications. Industrial Internet of Things (IIoT), the fourth industrial revolution or Industry 4.0 are all the names that have been given to the new wave of connected technology that is used in production of goods and services, including manufacturing and utilities. Industrial IoT is used to better manage assets, improve operations, and optimize productivity and efficiency.

Consumer IoT on the other hand is a more human-centric category of IoT activity that is starting to emerge. This IoT category is focused on filling our homes and offices with smart devices, and transforming them into something that's applicable to almost everyone. “Smart Homes” or “Connected Homes” have become the revolutionary ladder of success in the residential IoT space. It is one area where the big tech companies such as Google, Amazon, and Apple are vying hard for. In the future, we might see smart homes becoming as common as smartphones. It is clear that the IoT will become even more prevalent in every aspect of our lives.

The cost associated with the IoT and connected devices is continuously, decreasing making devices more affordable to consumers. This is driving the adoption of IOT enabled devices. Technology advancements, along with the increasing availability of Wi-Fi, broadband internet, and cellular and wireless networking, have played a crucial role in creating a perfect storm for the IoT, steering the direction of various industries. In reality, the IoT allows for endless opportunities, to a scale of which we are not even able to fully understand today.

How IoT devices connect and communicate:

The use of either an open protocol or a proprietary nature of devices influences the communication model that IoT devices adopt. The three basic models that currently exist are:

Device-to-Device communication

This communication model consists of two or more devices that directly connect and communicate with each other, rather than through an intermediary server. The devices communicate over many types of networks such as IP networks or the Internet. Frequently, these devices use protocols such as, Z-Wave, ZigBee, or Bluetooth to establish direct device-to-device communications. Applications like home automation system use this communication model, as small data packet of information is used to communicate between the devices with relatively low data rate requirements.

Device-to-cloud communication

In this communication model, the IoT device connects directly to an Internet based cloud service to transmit and exchange data. Device-to-cloud approach takes advantage of existing communications gears like Wi-Fi connections or traditional wired Ethernet to establish a connection between the device and the IP network, which in turn connects it to the cloud service. A popular example of such IoT devices is Nest Learning Thermostat. The thermostat transmits data to a cloud databank, where this data is used to analyze home energy consumption. The cloud connection also gives the customer the ability to remotely monitor the thermostat through a web interface, or a smartphone app.

Device-to-gateway communication

In the device-to-gateway model, there is an application software that operates as a local gateway device (it’s also called a “hub” device), which acts as an intermediary between the device and the cloud service. Such devices serve as a gateway between individual IoT devices and a cloud service and can also bridge the functionality and interoperability gap between devices themselves. For instance, the Smart-Things hub is a stand-alone gateway device that can support Z-Wave and Zig-bee as it has transceivers installed to communicate with both families of devices.

Final Thoughts:

The Internet of Things encompasses a broad range of ideas that are complex and are linked from different perspectives. Some users see the IoT as a revolutionary fully connected smart realm of progress and opportunity, while others believe it will usher in a gloomier world of surveillance, security and privacy encroachments.

The Internet of Things raises significant challenges that could stand in the way of achieving its potential benefits. News about the hacking of Internet-connected devices such as baby monitors, voice enabled devices, security cameras etc. bolster public fears of a lack of privacy and increased surveillance. However, the Electronic Privacy Information Center (EPIC), which focuses on emerging consumer privacy and civil liberties issues, has highlighted the issues of consumer privacy and lack of regulation within this industry. 

Cybersecurity concerns and the integration of devices with the latest technology are some of the biggest challenges in the continued adoption of IoT technology. This problem is due largely to the fact that many manufactures use proprietary communications protocols, as opposed to open protocols.

To address the cybersecurity concerns, the Federal Trade commission has been making continuous efforts and taking necessary regulatory steps to create a tool that will help in protecting customers from various security susceptibilities in IoT devices.

In order to realize the potential benefits of Internet the IoT, a solution for maximizing the benefits while minimizing the associated challenges and risks needs to be considered. This will not be achieved through a siloed approach by industry participants, but by an informed engagement, discussion, and collaboration across all the stakeholders to plan the most effective ways forward.

Anieket Vyavahare

Cluster Manager at Bajaj Finserv

3y

I would suggest you should also check for the another new wave in banks - FINTECH

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