What is IoT (Internet of Things)? | Microsoft Azure (2023)

  1. Home
  2. Resources
  3. Cloud computing dictionary
  4. What is IoT

It's your equipment, machines, products, and devices that are connected to the cloud and outfitted to collect and securely transmit data.

What is Internet of Things (IoT) and how can it help your business?

IoT enables your organization to analyze and act on data, allowing you to make smart decisions in real-time. With the timely and relevant insights about your business and customers that come with these new sources of data, there's great potential for industries of all kinds—including manufacturing, transportation, energy, agriculture, retail, and government—to operate more efficiently and provide new value to customers by implementing the right IoT solution.

What is the Internet of Things used for?

In short, IoT lets you solve your business problems using your own data. The Internet of Things isn't just about connected devices—it's about the information those devices collect and the powerful, immediate insights that can be garnered from that information. These insights can be used to transform your business and lower costs through improvements like reduction of wasted materials, streamlined operational and mechanical processes, or expansion into new lines of business that are only made possible with reliable real-time data. Create a real competitive advantage by using IoT to turn your data into insights and turn those insights into action.

What are some IoT examples?

Remote monitoring

Monitor almost any kind of asset—including heavy machinery, vehicles, and even livestock—almost anywhere, either continuously or at regular intervals. By tracking location, performance, condition, or environmental factors, the insights you gain from IoT-connected things may help you:

  • Reduce your service costs and refine your business processes.
  • Understand how your products are performing to provide a better experience for your customers.
  • Increase the number of appointments per day, cut fuel costs, and reduce wear-and-tear by using machine learning capabilities to route freight or vehicles more efficiently.

Know where your resources are at any given moment—down to which vehicle they’re on—for improved field service, stronger security, and increased employee safety.

Learn about remote monitoring

What is IoT (Internet of Things)? | Microsoft Azure (1)

What is IoT (Internet of Things)? | Microsoft Azure (2)

Predictive maintenance

Similar to remote monitoring, predictive maintenance incorporates machine learning software that analyzes data to predict outcomes and automate actions. Predictive capabilities allow service providers to move beyond the traditional reactive and scheduled maintenance business model and use their data to identify issues before they become critical. This gives technicians the opportunity to intervene before customers even realize there's a problem. Armed with this information, you're able to:

  • Figure out what mechanical or operational conditions are causing failures or slowdowns.
  • Better predict what spare parts to keep in your inventory before repair issues arise.
  • Move beyond a break/fix business model by preventing equipment failures through preventative maintenance.

Learn about predictive maintenance

Facilities management

This IoT scenario is focused on monitoring your buildings, infrastructure, and other spaces, allowing you to improve energy efficiency, space utilization, productivity, and safety using the data you collect. The insights you gain may help you:

  • Save money by automating lighting or optimizing heating and cooling cycles.
  • Increase employee or occupant satisfaction by keep equipment running or ensuring that supplies are stocked.

What is IoT (Internet of Things)? | Microsoft Azure (3)

(Video) AZ-900 Episode 14 | Azure IoT Services | IoT Hub, IoT Central, Azure Sphere

What is IoT (Internet of Things)? | Microsoft Azure (4)

Manufacturing efficiency

What is the internet of things used for in manufacturing? Every business is different, but many manufacturing processes share a common pathway from raw materials to finished products. With IoT, it's possible to learn from your own systems find new ways to manage your processes and product quality with data from your devices and sensors. With these data insights, you're able to:

  • Identify bottlenecks that reduce efficiency, enabling you to improve your process.
  • Reduce downtime caused by unplanned maintenance or equipment failure.
  • Eliminate substandard materials, parts, or errors before your product is complete.
  • Reduce downtime caused by unplanned maintenance or equipment failure.

Connected products

Connected products have smart, connective components that allow data to be exchanged between the product and its user, manufacturer, or environment. Related IoT solutions may help you build smart factories with new functionality, greater reliability, and higher product utilization. Using connected products, you're able to:

  • Streamline the development and maintenance of your products.
  • Provide more secure, connected experiences for your customers.
  • Create new lines of business with managed service and support.
  • Monitor how products perform to improve design, manufacturing, and reliability.

Explore how to create an intelligent factory solution

What is IoT (Internet of Things)? | Microsoft Azure (5)

What is IoT beneficial for?

Organizations that invest in the Internet of Things are able to deliver more value, including more personalized customer engagement, less waste of materials and labor, and increased operational efficiency. As data is collected and analyzed, new trends may even reveal new revenue opportunities. Because of these benefits, trends indicate that IoT use is both rapidly diversifying and becoming more commonplace.

Read the 2020 IoT signals report to learn more

Of IoT decision-makers surveyed:


have adopted IoT in 2020


believe IoT is critical to their company's continued success


plan to implement even more IoT in the future

Get started with IoT

Whether your company has the resources to plan and implement an IoT solution on its own or needs to work with a partner, the basic steps for a successful IoT deployment are usually the same:

What is IoT (Internet of Things)? | Microsoft Azure (6)

Define Internet of Things business cases.

What is IoT (Internet of Things)? | Microsoft Azure (7)

Work with an empowered team that represents OT, IT, and management.

(Video) Introduction to Azure IoT | Azure IoT Tutorial For Beginners | Edureka

What is IoT (Internet of Things)? | Microsoft Azure (8)

Start small, working your way up in terms of scope and complexity after you’ve achieved initial success.

Define Internet of Things business cases

Rethink your current IoT-enabled business model or develop a new model that better supports how you interact with your customers.

Discover the right IoT insights for your business

Extract information from massive amounts of data with cloud analytics so that it's readily available and easily categorized. Use this information to better understand how your products or services are performing. Incorporate cloud analytics using fully managed IoT services that provide deeper insights to drive faster decision-making.

Start small—but think big

Gain new business insights using the equipment you already have and the right IoT solution. Start small, scale up at your own pace, and grow your business with secure, innovative IoT services.

Learn about IoT technologies and protocols

Develop a strong foundation in IoT to make the best choices for your project. Learn more about IoT technologies and protocols.

Accelerate your business transformation with IoT

Reduce complexity, lower costs, and speed up your time to market with fully managed IoT services.

Secure your IoT solutions

What is Internet of Things security and how is it different from regular cybersecurity? In short, IoT cybersecurity adds an extra layer of complexity as the cyber and the physical worlds converge. For this reason, it's important to monitor everything connected to your IoT solution and make sure to have threat monitoring in place to get alerts and address threats quickly. Learn more about Azure IoT security.

Take your IoT solutions from device to cloud

Build according to your needs with solutions for devices at the edge, in the cloud, and connected to your line-of-business systems. Edge computing lets data to be processed closer to where it's generated, enabling you to analyze that data closer to real-time. Cloud computing is a model in which servers, applications, data, and other resources are integrated and provided as a service over the Internet. Learn more about cloud computing.

Frequently asked questions

  • Simply put, the term Internet of Things refers to the entire network of physical devices, tools, appliances, equipment, machinery, and other smart objects that have the capability to collect data about the physical world and transmit that data through the internet.

  • On a basic level, IoT is used for collecting data about the physical world that would be very difficult or impossible for humans to collect without the aid of smart devices and monitoring systems. Insights derived from the data collected by these devices allow people to understand, monitor, and react to events or changes.

  • Internet of things devices come in all different forms and are used for a variety of different things—from helping individuals with day-to-day tasks to helping large organizations streamline operations and meet business goals. Things like smart appliances, smart lights, and smart door locks are all examples of IoT that you might find in someone's home. Examples of commercial and industrial IoT devices include things like smart factory or farming equipment, smart vehicles, and even entire connected factories, warehouses and buildings.

Explore Azure IoT solutions by industry

See use cases and internet of things examples by industry

What is IoT (Internet of Things)? | Microsoft Azure (9)


What is IoT (Internet of Things)? | Microsoft Azure (10)


What is IoT (Internet of Things)? | Microsoft Azure (11)

Industrial manufacturing

What is IoT (Internet of Things)? | Microsoft Azure (12)


What is IoT (Internet of Things)? | Microsoft Azure (13)

Transportation and logistics

(Video) Internet of Things *What is the future of internet of things? / IoT Azure Use Cases*

Discover Azure IoT services

What is IoT (Internet of Things)? | Microsoft Azure (14)

Azure Sphere

What is IoT (Internet of Things)? | Microsoft Azure (15)

Azure Digital Twins

What is IoT (Internet of Things)? | Microsoft Azure (16)

(Video) Azure IoT (Internet of things)

Azure IoT Central

What is IoT (Internet of Things)? | Microsoft Azure (17)

Azure IoT Edge

What is IoT (Internet of Things)? | Microsoft Azure (18)

Azure IoT Hub

What is IoT (Internet of Things)? | Microsoft Azure (19)

Azure RTOS

What is IoT (Internet of Things)? | Microsoft Azure (20)

Azure Time Series Insights

What is IoT (Internet of Things)? | Microsoft Azure (21)

Windows 10 IoT Core Services

What is IoT (Internet of Things)? | Microsoft Azure (22)

Azure Percept

Start building with Azure

Try Azure cloud computing services free for up to 30 days, or get started with pay-as-you-go pricing. There's no upfront commitment—cancel anytime.

Try Azure for free Explore pay as you go

Can we help you?


What is Azure Internet of Things IoT )? ›

The Azure Internet of Things (IoT) is a collection of Microsoft-managed cloud services that connect, monitor, and control billions of IoT assets. In simpler terms, an IoT solution is made up of one or more IoT devices that communicate with one or more back-end services hosted in the cloud.

What is IoT definition and examples? ›

The internet of things is a technology that allows us to add a device to an inert object (for example: vehicles, plant electronic systems, roofs, lighting, etc.) that can measure environmental parameters, generate associated data and transmit them through a communications network.

Which of the following are Internet of Things IoT services on Azure? ›

Internet of Things
  • Azure IoT Hub.
  • Go from proof of concept to proof of value.
  • Create, connect, and maintain secured intelligent IoT devices from the edge to the cloud.
  • Microsoft Defender for IoT. Unified threat protection for all your IoT/OT devices.
  • Windows for IoT.
  • Azure Machine Learning. ...
  • Azure Maps.

What is IoT A and why is it important? ›

The internet of things, or IoT, is a system of interrelated computing devices, mechanical and digital machines, objects, animals or people that are provided with unique identifiers (UIDs) and the ability to transfer data over a network without requiring human-to-human or human-to-computer interaction.

What are the benefits of Azure IoT? ›

It enables highly secure and reliable communication channels between IoT applications and devices. With Azure IoT Hub, technology service providers help you connect and manage IoT devices effortlessly. For instance, Payoda helps you simplify complex IoT processes and take server less computing to another level.

What are the four 4 components of Internet of Things IoT )? ›

However, all complete IoT systems are the same in that they represent the integration of four distinct components: sensors/devices, connectivity, data processing, and a user interface.

What is Internet of Things IoT in simple words? ›

The term IoT, or Internet of Things, refers to the collective network of connected devices and the technology that facilitates communication between devices and the cloud, as well as between the devices themselves.

What is IoT daily life examples? ›

A few examples of IoT devices are laptops, smartphones, refrigerators, coffee machines, Apple watches, Google Home, Fitbits, etc. Devices equipped with an Internet connection and sensors can be used for IoT applications. IoT generates huge quantities of information, which becomes the characteristic of Big Data.

What is the internet of Things IoT quizlet? ›

The Internet of Things (IoT) is a system of interrelated computing devices, mechanical and digital machines, objects, animals or people that are provided with unique identifiers (UIDs) and the ability to transfer data over a network without requiring human-to-human or human-to-computer interaction.

What are the three 3 main components of IoT? ›

The basic three components of IoT includes “Things”, “Internet”, and “Connectivity”. Interoperable connection to local network, cloud or other devices. IoT components are tied together by networks, using various wireless and wireline technologies, standards, and protocols to provide pervasive connectivity.

What are three examples of IoT? ›

A few IoT devices that you may be familiar with include smart thermostats and kitchen appliances, fitness tracking watches, self-driving cars, and home security systems. Personal medical devices like pacemakers are also IoT devices.

What is the main goal of IoT? ›

The goal behind the Internet of things is to have devices that self report in real-time, improving efficiency and bringing important information to the surface more quickly than a system depending on human intervention.

What are the three key benefits of IoT? ›

IoT in the World Around Us

Monitoring of tank levels in industrial and agricultural applications. Automating processes in industrial operations for safety, efficiency and cost savings. Detection of gas leaks in oil and gas operations. Tracking the location of goods in transit.

Who uses Azure IoT? ›

Who uses Azure IoT Hub?
CompanyWebsiteCompany Size
Lenovo Group Ltdlenovo.com.cn1000-5000
Blackfriars Groupblackfriarsgroup.com>10000

What are the five advantages of IoT? ›

5 Benefits of the Internet of Things (IoT) for SMBs
  • Reduced costs.
  • Higher efficiency and productivity.
  • More business opportunities.
  • Improved customer experience.
  • Increased mobility and agility.

What is Azure and why is it important? ›

Azure is a cloud computing platform and an online portal that allows you to access and manage cloud services and resources provided by Microsoft. These services and resources include storing your data and transforming it, depending on your requirements.

What are the key features of IoT? ›

Answer: IoT has ten major features, and they are- scalability, connectivity, artificial intelligence, security, dynamic nature, endpoint management, integration, analyzing, and compact nature of devices.

What are the three types of IoT devices? ›

Types of IoT
  • Consumer IoT - Primarily for everyday use. ...
  • Commercial IoT - Primarily used in the healthcare and transport industries. ...
  • Military Things (IoMT) - Primarily used for the application of IoT technologies in the military field.
6 days ago

What are the main types of IoT? ›

There are two types of IoT: CIoT and IIoT. The differences between CIoT and IIoT are: CIoT often focuses on convenience for individual customers, whereas IIoT is strongly focused on the industry sector, improving the efficiency, security, and output of operations with a focus on Return on Investment (ROI).

What are the most common IoT applications? ›

List of Top 10 Applications of IoT
  • Self-driven Cars.
  • IoT Retail Shops.
  • Farming.
  • Wearables.
  • Smart Grids.
  • Industrial Internet.
  • Telehealth.
  • Smart Supply-chain Management.

What is the most interesting use of IoT? ›

The most visible application of the Internet of Things is a smart home. A smart home uses sensors to control and maintain lighting, resource management, and security systems. A smart home is a smaller, independent version of a smart city. An example of an IoT-based smart home system is Mark Zuckerberg's Jarvis.

What is the internet of Things IoT quizlet Everfi? ›

refers to a network of physical devices that use sensors, software, and connectivity to share data. Not a Toilet, bathroom light, or hand soap dispenser.

What are some examples of IoT Internet of Things quizlet? ›

Terms in this set (4)
  • Smart Homes; nest, alba by stack.
  • Automobiles; smart car technology, hyundai - the empty car convoy.
  • Industry; the future of manufacturing.
  • Fitness monitors.
  • Garbage bins.
  • Farm management systems.
  • Wi-Fi enabled Rice cookers.
  • iKettle.

Which devices are called IoT devices? ›

Anything that has a sensor attached to it and can transmit data from one object to another or to people with the help of internet is known as an IoT device. The IoT devices include wireless sensors, software, actuators, computer devices and more.

What are advantages and disadvantages of IoT? ›

Advantages are use in traffic systems, save time, enhanced data collection, improved security, improved security etc. disadvantages are security issues, privacy concerns, increased unemployment, the complexity of the system, high chances of the entire system getting corrupted etc.

What is IoT basics for beginners? ›

IoT stands for internet of things. Most simply, it refers to physical objects linked through wired and wireless networks. More specifically, it refers to the collection of internet-connected devices that are able to communicate autonomously over the internet, without needing a person to initiate the communication.

Why is IoT technology important? ›

Over the past few years, IoT has become one of the most important technologies of the 21st century. Now that we can connect everyday objects—kitchen appliances, cars, thermostats, baby monitors—to the internet via embedded devices, seamless communication is possible between people, processes, and things.

How does IoT works? ›

An IoT system consists of sensors/devices which “talk” to the cloud through some kind of connectivity. Once the data gets to the cloud, software processes it and then might decide to perform an action, such as sending an alert or automatically adjusting the sensors/devices without the need for the user.

How does IoT impact our lives? ›

Technology Advancing

The consumer market relates IoT technology to the concept of smart homes, which includes devices such as home security systems, thermostats, lighting, and cameras. All these devices include Bluetooth. They can use the internet to share data and store data in a database to support an ecosystem.

Is Microsoft Azure an IoT platform? ›

Azure IoT Central is an IoT application platform that simplifies the creation of IoT solutions. It helps to reduce the burden and cost of IoT management operations, and development.

What is IoB and IoT? ›

By definition, IoB technology gathers and processes data based on the user's behavior. This data is then linked with the IoT applications so that users are only recommended basis their choice of output. Pretty soon, IoB technologies will also be used to deliver users a better quality of life.

What are the 5 components of the IoT? ›

Major Components of IoT
  • Things or Devices. The key physical items being tracked are Things or Devices. ...
  • User Interface. User interface also termed as UI is nothing but a user-facing program that allows the user to monitor and manipulate data. ...
  • Cloud. ...
  • Analytics. ...
  • Network Interconnection. ...
  • System Security. ...
  • Central Control Hardware.
Mar 10, 2022

What is the most important part of IoT? ›

Distributed database management systems are one of the most important components of IoT cloud. Cloud system integrates billions of devices, sensors, gateways, protocols, data storage and provides predictive analytics.

What type of technology is Azure? ›

At its core, Azure is a public cloud computing platform—with solutions including Infrastructure as a Service (IaaS), Platform as a Service (PaaS), and Software as a Service (SaaS) that can be used for services such as analytics, virtual computing, storage, networking, and much more.

How do I connect IoT to Azure? ›

Create an IoT hub
  1. Launch your CLI app. ...
  2. Run az extension add to install or upgrade the azure-iot extension to the current version. ...
  3. In your CLI app, run the az group create command to create a resource group. ...
  4. Run the az iot hub create command to create an IoT hub.
Mar 11, 2022


1. Introduction to Azure IoT | Microsoft Azure IoT | Azure Tutorial | Edureka | Azure Live - 1
2. Internet of Things Patterns And Azure IoT Updates
(Microsoft Developer)
3. Internet of Things (IoT) at Microsoft Inspire
(Microsoft Cloud Partner Program)
4. Create the Internet of Your Things - The Microsoft Azure IoT Suite - Stefano Tempesta
(NDC Conferences)
5. Create the Internet of Your Things - Microsoft's Vision for IoT
(Microsoft Cloud)
Top Articles
Latest Posts
Article information

Author: Pres. Carey Rath

Last Updated: 02/16/2023

Views: 5907

Rating: 4 / 5 (41 voted)

Reviews: 80% of readers found this page helpful

Author information

Name: Pres. Carey Rath

Birthday: 1997-03-06

Address: 14955 Ledner Trail, East Rodrickfort, NE 85127-8369

Phone: +18682428114917

Job: National Technology Representative

Hobby: Sand art, Drama, Web surfing, Cycling, Brazilian jiu-jitsu, Leather crafting, Creative writing

Introduction: My name is Pres. Carey Rath, I am a faithful, funny, vast, joyous, lively, brave, glamorous person who loves writing and wants to share my knowledge and understanding with you.