B.

Tech (EEE) R-18

Text Books:

1. IoT Fundamentals: Networking Technologies, Protocols and Use Cases for Internet of
Things, David Hanes, Gonzalo Salgueiro, Patrick Grossetete, Rob Barton and Jerome Henry,
Cisco Press, 2017
2. Internet of Things – A hands-on approach, Arshdeep Bahga, Vijay Madisetti, Universities
Press, 2015
3. Internet of Things: Architecture, Design Principles And Applications, Rajkamal, McGraw Hill
HigherEducation

Reference Books:
1. The Internet of Things – Key applications and Protocols, Olivier Hersent, David
Boswarthick, Omar Elloumi and Wiley, 2012 (for Unit2).
2. “From Machine-to-Machine to the Internet of Things – Introduction to a New Age
of Intelligence”,Jan Ho¨ ller, VlasiosTsiatsis, Catherine Mulligan, Stamatis,
Karnouskos, Stefan Avesand. David Boyle and Elsevier, 2014.
3. Architecting the Internet of Things,Dieter Uckelmann, Mark Harrison, Michahelles
and Florian (Eds), Springer,2011.
4. Recipes to Begin, Expand, and Enhance Your Projects, 2nd Edition,Michael
Margolis,Arduino Cookbook and O‟Reilly Media,2011.

Course Outcomes:
At the end of this course, students will be able to
 Understand the basics of IoT.
 Implement the state of the Architecture of an IoT.
 Understand design methodology and hardware platforms involved in IoT.
 Understand how to analyze and organize the data.
 Compare IOT Applications in Industrial & realworld.

Malla Reddy College of Engineering and Technology (MRCET)

3
 Unit 1
FUNDAMENTALS OF IoT

1. INTRODUCTION TO IoT

 Today the Internet has become ubiquitous, has touched almost every corner of the
globe, and is affecting human life in unimaginable ways.
 We are now entering an era of even more pervasive connectivity where a very wide
variety of appliances will be connected to the web.
 One year after the past edition of the Clusterbook 2012 it can be clearly statedthat
the Internet of Things (IoT) has reached many different players and gainedfurther
recognition. Out of the potential Internet of Things application areas,Smart Cities
(and regions), Smart Car and mobility, Smart Home and assistedliving, Smart
Industries, Public safety, Energy & environmental protection,Agriculture and Tourism
as part of a future IoT Ecosystem (Figure 1.1) haveacquired high attention.

IoT Ecosystem.

 We are entering an era of the “Internet of Things” (abbreviated as IoT).There are 2

definitions: First one is defined by Vermesan and second by Pe˜na-L´opez
1. The Internet of Things as simply an interaction between the physical and digital
worlds. The digital world interacts with the physical world using a plethora of sensors
and actuators.
2. Another is the Internet of Things is defined as a paradigm in which computing and
networking capabilities are embedded in any kind of conceivable object.
 We use these capabilities to query the state of the object and to change its state if
possible.
 In common parlance, the Internet of Things refers to a new kind of world where
almost all the devices and appliances that we use are connected to a network.
 We can use them collaboratively to achieve complex tasks that require a high degree
of intelligence.
 For this intelligence and interconnection, IoT devices areequipped with embedded
sensors, actuators, processors, andtransceivers.
 IoT is not a single technology; rather it is anagglomeration of various technologies
that work together intandem.
 Sensors and actuators are devices, which help in interactingwith the physical
environment.
 The data collected by thesensors has to be stored and processed intelligently in
order toderive useful inferences from it.
 Note that we broadly definethe term sensor; a mobile phone or even a microwave
ovencan count as a sensor as long as it provides inputs about itscurrent state
(internal state + environment).
 An actuator is adevice that is used to effect a change in the environment suchas the
temperature controller of an air conditioner.
 The storage and processing of data can be done on theedge of the network itself or
in a remote server.
 If any preprocessingof data is possible, then it is typically done at eitherthe sensor or
some other proximate device.
 The processeddata is then typically sent to a remote server.
 The storageand processing capabilities of an IoT object are also restrictedby the
resources available, which are often very constraineddue to limitations of size,
energy, power, and computationalcapability.
 As a result the main research challenge is toensure that we get the right kind of data
at the desired levelof accuracy.
 Along with the challenges of data collection, and handling, there are challenges in
communication aswell.
 The communication between IoT devices is mainlywireless because they are
generally installed at geographicallydispersed locations.
 The wireless channels often have high rates of distortion and are unreliable.
 In this scenario reliablycommunicating data without too many retransmissions is
animportant problem and thus communication technologiesare integral to the study
of IoT devices.
 We can directly modify the physical world through actuators or we may do
something virtually. For example,we can send some information to other smart
things.
  The process of effecting a change in the physical world is often dependent on its
state at that point of time. This is called context awareness. Each action is taken
keeping in consideration the context because an application can behave differently
in different contexts.
 For example, a person may not like messages from his office to interrupt him when
he is on vacation. Sensors, actuators, compute servers, and the communication
network form the core infrastructure of an IoT framework. However, there are many
software aspects that need to be considered.
 First, we need a middleware that can be used to connect and manage all of these
heterogeneous components. We need a lot of standardization to connect many
different devices.
 The Internet of Things finds various applications in health care, fitness, education,
entertainment, social life, energy conservation, environment monitoring, home
automation, and transport systems.

1.2 TECHNOLOGIES INVOLVED IN IOT DEVELOPMENT: INTERNET/WEB AND NETWORKING

BASICS OSI MODEL

 Networking technologies enable IoT devices to communicate with other devices,

applications, and services running in the cloud.
 The internet relies on standardized protocols to ensure communication between
heterogeneous devices is secure and reliable.
 Standard protocols specify rules and formats that devices use to establish and
manage networks and transmit data across those networks.
 Networks are built as a “stack” of technologies. A technology such as Bluetooth LE
is at the bottom of the stack.
 While others such as such as IPv6 technologies (which is responsible for the logical
device addressing and routing of network traffic) are further up the stack.
Technologies at the top of the stack are used by the applications that are running
on top of those layers, such as message queuing technologies.
 This article describes widely adopted technologies and standards for IoT
networking. It also provides guidance for choosing one network protocol over
another. It then discusses key considerations and challenges related to networking
within IoT: range, bandwidth, power usage, intermittent connectivity,
interoperability, and security.
NETWORKING STANDARDS AND TECHNOLOGIES

 The Open Systems Interconnection (OSI) model is an ISO-standard abstract model

is a stack of seven protocol layers.
 From the top down, they are: application, presentation, session, transport,
network, data link and physical. TCP/IP, or the Internet Protocol suite, underpins
the internet, and it provides a simplified concrete implementation of these layers
in the OSI model.

Figure 1. OSI and TCP/IP networking models

The TCP/IP model includes only four layers, merging some of the OSI model layers:

 Network Access & Physical Layer

This TCP/IP Layer subsumes both OSI layers 1 and 2. The physical (PHY) layer (Layer
1 of OSI) governs how each device is physically connected to the network with
hardware, for example with an optic cable, wires, or radio in the case of wireless
network like wifi IEEE 802.11 a/b/g/n). At the link layer (Layer 2 of OSI), devices are
identified by a MAC address, and protocols at this level are concerned with
physical addressing, such as how switches deliver frames to devices on the
network.

 Internet Layer

This layer maps to the OSI Layer 3 (network layer). OSI Layer 3 relates to logical
addressing. Protocols at this layer define how routers deliver packets of data
 between source and destination hosts identified by IP addresses. IPv6 is commonly
adopted for IoT device addressing.

 Transport Layer

The transport layer (Layer 4 in OSI) focuses on end-to-end communication and

provides features such as reliability, congestion avoidance, and guaranteeing that
packets will be delivered in the same order that they were sent. UDP (User
Datagram protocol) is often adopted for IoT transport for performance reasons.

 Application Layer

The application layer (Layers 5, 6, and 7 in OSI) covers application-level messaging.

HTTP/S is an example of an application layer protocol that is widely adopted across
the internet.

Although the TCP/IP and OSI models provide you with useful abstractions for discussing
networking protocols and specific technologies that implement each protocol, some
protocols don’t fit neatly into these layered models and are impractical. For example, the
Transport Layer Security (TLS) protocol that implements encryption to ensure privacy and
data integrity of network traffic can be considered to operate across OSI layers 4, 5, and 6.

NETWORK ACCESS AND PHYSICAL LAYER IOT NETWORK TECHNOLOGIES

IoT network technologies to be aware of toward the bottom of the protocol stack include
cellular, Wifi, and Ethernet, as well as more specialized solutions such as LPWAN,
Bluetooth Low Energy (BLE), ZigBee, NFC, and RFID.

NB-IoT is becoming the standard for LPWAN networks, according to Gartner. This IoT for
All article tells more about NB-IoT.

The following are network technologies with brief descriptions of each:

 LPWAN
(Low Power Wide Area Network) is a category of technologies designed for low-
power, long-range wireless communication. They are ideal for large-scale
deployments of low-power IoT devices such as wireless sensors. LPWAN
technologies include LoRa (LongRange physical layer protocol), Haystack, SigFox,
LTE-M, and NB-IoT (Narrow-Band IoT).
 Cellular
The LPWAN NB-IoT and LTE-M standards address low-power, low-cost IoT
communication options using existing cellular networks. NB-IoT is the newest of
 these standards and is focused on long-range communication between large
numbers of primarily indoor devices. LTE-M and NB-IoT were developed
specifically for IoT, however existing cellular technologies are also frequently
adopted for long-range wireless communication. While this has included 2G (GSM)
in legacy devices (and currently being phased out), CDMA (also being retired or
phased out), it also includes 3G, which is rapidly being phased out with several
network providers retiring all 3G devices. 4G is still active and will be until 5G
becomes fully available and implemented.
 Bluetooth Low Energy (BLE)

BLE is a low-power version of the popular Bluetooth 2.4 GHz wireless

communication protocol. It is designed for short-range (no more than 100 meters)
communication, typically in a star configuration, with a single primary device that
controls several secondary devices. Bluetooth operates across both layers 1 (PHY)
and 2 (MAC) of the OSI model. BLE is best suited to devices that transmit low
volumes of data in bursts. Devices are designed to sleep and save power when
they are not transmitting data. Personal IoT devices such as wearable health and
fitness trackers, often use BLE.

 ZigBee
ZigBee operates on 2.4GHz wireless communication spectrum. It has a longer
range than BLE by up to 100 meters. It also has a slightly lower data rate (250 kbps
maximum compared to 270 kbps for BLE) than BLE. ZigBee is a mesh network
protocol. Unlike BLE, not all devices can sleep between bursts. Much depends on
their position in the mesh and whether they need to act as routers or controllers
within the mesh. ZigBee was designed for building and home automation
applications. Another closely related technology to ZigBee is Z-Wave, which is also
based on IEEE 802.15.4. Z-Wave was designed for home automation. It has been
proprietary technology, but was recently released as a public domain
specification.
 NFC
The near field communication (NFC) protocol is used for very small range
communication (up to 4 cm), such as holding an NFC card or tag next to a reader.
NFC is often used for payment systems, but also useful for check-in systems and
smart labels in asset tracking.
 RFID
RFID stands for Radio Frequency Identification. RFID tags store identifiers and
data. The tags are attached to devices and read by an RFID reader. The typical
range of RFID is less than a meter. RFID tags can be active, passive, or assisted
passive. Passive tags are ideal for devices without batteries, as the ID is passively
 read by the reader. Active tags periodically broadcast their ID, while assisted
passive tags become active when RFID reader is present. Dash7 is a
communication protocol that uses active RFID that is designed to be used within
Industrial IoT applications for secure long-range communication. Similar to NFC, a
typical use case for RFID is tracking inventory items within retail and industrial IoT
applications.
 Wifi
Wifi is standard wireless networking based on IEEE 802.11a/b/g/n specifications.
802.11n offers the highest data throughput, but at the cost of high-power
consumption, so IoT devices might only use 802.11b or g for power conservation
reasons. Although wifi is adopted within many prototype and current generation
IoT devices, as longer-range and lower-power solutions become more widely
available, it is likely that wifi will be superseded by lower-power alternatives.
 Ethernet
Widely deployed for wired connectivity within local area
networks, Ethernet implements the IEEE 802.3 standard. Not all IoT devices need
to be stationery wireless . For example, sensor units installed within a building
automation system can use wired networking technologies like Ethernet. Power
line communication (PLC), an alternative hard-wired solution, uses existing
electrical wiring instead of dedicated network cables.

INTERNET LAYER IOT NETWORK TECHNOLOGIES

Internet layer technologies (OSI Layer 3) identify and route packets of data. Technologies
commonly adopted for IoT are related to this layer, and include IPv6, 6LoWPAN, and RPL.

 IPv6
At the Internet layer, devices are identified by IP addresses. IPv6 is typically used
for IoT applications over legacy IPv4 addressing. IPv4 is limited to 32-bit
addresses, which only provide around 4.3 billion addresses in total, which is less
than the current number of IoT devices that are connected, while IPv6 uses 128
bits, and so provides 2 128 addresses (around 3.4 × 10 38 or 340 billion billion billion
billion) addresses. In practice, not all IoT devices need public addresses. Of the
tens of billions of devices expected to connect via the IoT over the next few years,
many will be deployed in private networks that use private address ranges and
only communicate out to other devices or services on external networks by using
gateways.
 6LoWPAN
The IPv6 Low Power Wireless Personal Area Network (6LoWPAN) standard allows
IPv6 to be used over 802.15.4 wireless networks. 6LoWPAN is often used for
wireless sensor networks, and the Thread protocol for home automation devices
also runs over 6LoWPAN.
  RPL
The Internet Layer also covers routing. IPv6 Routing Protocol for Low-Power and
Lossy Networks (RPL) is designed for routing IPv6 traffic over low-power networks
like those networks implemented over 6LoWPAN. RPL (pronounced “ripple”) is
designed for routing packets within constrained networks such as wireless sensor
networks, where not all devices are reachable at all times and there are high or
unpredictable amounts of packet loss. RPL can compute the optimal path by
building up a graph of the nodes in the network based on dynamic metrics and
constraints like minimizing energy consumption or latency.

APPLICATION LAYER IOT NETWORK TECHNOLOGIES

HTTP and HTTPS are ubiquitous across internet applications, which is true also within IoT,
with RESTful HTTP and HTTPS interfaces widely deployed. CoAP (Constrained Application
Protocol) is like a lightweight HTTP that is often used in combination with 6LoWPAN over
UDP. Messaging protocols like MQTT, AMQP, and XMPP are also frequently used within
IoT applications:

 MQTT
Message Queue Telemetry Transport (MQTT) is a publish/subscribe-based
messaging protocol that was designed for use in low bandwidth situations,
particularly for sensors and mobile devices on unreliable networks.
 AMQP
Advanced Message Queuing Protocol (AMQP) is an open standard messaging
protocol that is used for message-oriented middleware. Most notably, AMQP is
implemented by RabbitMQ.
 XMPP
The Extensible Messaging and Presence Protocol (XMPP) was originally designed
for real-time human-to-human communication including instant messaging. This
protocol has been adapted for machine-to-machine (M2M) communication to
implement lightweight middleware and for routing XML data. XMPP is primarily
used with smart appliances.

Your choice of technologies at this layer will depend on the specific application
requirements of your IoT project. For example, for a budget home automation syst em
that involves several sensors, MQTT would be a good choice as it is great for
implementing messaging on devices without much storage or processing power because
the protocol is simple and lightweight to implement.
IOT NETWORKING CONSIDERATIONS AND CHALLENGES

When you consider which networking technologies to adopt within your IoT application,
be mindful of the following constraints:

 Range
 Bandwidth
 Power usage
 Intermittent connectivity
 Interoperability
 Security

Range

Networks can be described in terms of the distances over which data is typically
transmitted by the IoT devices attached to the network:

 PAN(PersonalAreaNetwork)
PAN is short-range, where distances can be measured in meters, such as a
wearable fitness tracker device that communicates with an app on a cell phone
over BLE.
 LAN(LocalAreaNetwork)
LAN is short- to medium-range, where distances can be up to hundreds of meters,
such as home automation or sensors that are installed within a factory production
line that communicate over wifi with a gateway device that is installed within the
same building.
 MAN (Metropolitan Area Network)
MAN is long-range (city wide), where distances are measured up to a few
kilometers, such as smart parking sensors installed throughout a city that are
connected in a mesh network topology.
 WAN (Wide Area Network)
WAN is long-range, where distances can be measured in kilometers, such as
agricultural sensors that are installed across a large farm or ranch that are used to
monitor micro-climate environmental conditions across the property.

Your network should retrieve data from the IoT devices and transmit to its intended
destination. Select a network protocol that matches the range is required. For example,
do not choose BLE for a WAN application to operate over a range of several kilometers. If
transmitting data over the required range presents a challenge, consider edge computing.
Edge computing analyzes data directly from the devices rather than from a distant data
center or elsewhere.
Bandwidth

Bandwidth is the amount of data that can be transmitted per unit of time. It limits the
rate at which data can be collected from IoT devices and transmitted upstream.
Bandwidth is affected by many factors, which include:

 The volume of data each device gathers and transmits

 The number of devices deployed
 Whether data is being sent as a constant stream or in intermittent bursts, and if
any peak periods are notable

The packet size of the networking protocol should match up with the volume of data
typically transmitted. It is inefficient to send packets padded with empty data. In
contrast, there are overheads in splitting larger chunks of data up across too many small
packets. Data transmission rates are not always symmetrical (that is, upload rates might
be slower than download rates). So, if there is two-way communication between devices,
data transmission needs to be factored in. Wireless and cellular networks are
traditionally low bandwidth, so consider whether a wireless technology is the right choice
for high-volume applications.

Consider whether all raw data must be transmitted. A possible solution is to capture less
data by sampling less frequently. Thus, you’ll capture fewer variables and may filter data
from the device to drop insignificant data. If you aggregate the data before you transmit
it, you reduce the volume of data transmitted. But this process affects flexibility and
granularity in the upstream analysis. Aggregation and bursting are not always suitable for
time-sensitive or latency-sensitive data. All of these techniques increase the data
processing and storage requirements for the IoT device.

Power usage

Transmitting data from a device consumes power. Transmitting data over long ranges
requires more power than over a short range. You must consider the power source – such
as a battery, solar cell, or capacitor – of a device and its total lifecycle. A long and
enduring lifecycle will not only provide greater reliability but reduce operating cost. Steps
may be taken to help achieve longer power supply lifecycles. For example, to prolong the
battery life, you can put the device into sleep mode whenever it is idle. Another best
practice is to model the energy consumption of the device under different loads and
different network conditions to ensure that the device’s power supply and storage
capacity matches with the power that is required to transmit the necessary data by using
the networking technologies that you adopted.
Intermittent connectivity

IoT devices aren’t always connected. In some cases, devices are designed to connect
periodically. However, sometimes an unreliable network might cause devices to drop off
due to connectivity issues. Sometimes quality of service issues, such as dealing with
interference or channel contention on a wireless network using a shared spectrum.
Designs should incorporate intermittent connectivity and seek any available solutions to
provide uninterrupted service, should that be a critical factor for IoT landscape design.

Interoperability

Devices work with other devices, equipment, systems, and technology; they are
interoperable. With so many different devices connecting to the IoT, interoperability can
be a challenge. Adopting standard protocols has been a traditional approach for
maintaining interoperability on the Internet. Standards are agreed upon by industry
participants and avoid multiple different designs and directions. With proper standards,
and participants who agree to them, incompatibility issues, hence interoperability issues
may be avoided.

However, for the IoT, standardization processes sometimes struggle to keep up with
innovation and change. They are written and released based on upcoming versions of
standards that are still subject to change. Consider the ecosystem around the
technologies: Are they widely adopted? Are they open versus proprietary? How many
implementations are available?

Using these questions to plan your IoT networks help plan better interoperability for a
more robust IoT network.

Security

Security is a priority. Selection of networking technologies that implement end-to-end

security, including authentication, encryption, and open port protection is crucial. IEEE
802.15.4 includes a security model that provides security features that include access
control, message integrity, message confidentiality, and replay protection, which are
implemented by technologies based on this standard such as ZigBee.

Consider the following factors in shaping a secure and safe IoT network:

 Authentication
Adopt secure protocols to support authentication for devices, gateways, users,
services, and applications. Consider using adopting the X.509 standard for device
authentication.
  Encryption
If you are using wifi, use Wireless Protected Access 2 (WPA2) for wireless network
encryption. You may also adopt a Private Pre-Shared Key (PPSK) approach. To
ensure privacy and data integrity for communication between applications, be
sure to adopt TLS or Datagram Transport-Layer Security (DTLS), which is based on
TLS, but adapted for unreliable connections that run over UDP. TLS encrypts
application data and ensures its integrity.
 Port protection
Port protection ensures that only the ports required for communication with the
gateway or upstream applications or services remain open to external
connections. All other ports should be disabled or protected by firewalls. Device
ports might be exposed when exploiting Universal Plug and Play (UPnP)
vulnerabilities. Thus, UPnP should be disabled on the router.

The IoT World Forum (IoTWF) Standardized Architecture

In 2014 the IoTWF architectural committee (led by Cisco, IBM, Rockwell Automation, and
others)published a seven-layer IoT architectural reference model. While various IoT
reference models exist, theone put forth by the IoT World Forum offers a clean, simplified
perspective on IoT and includes edgecomputing, data storage, and access. It provides a
succinct way of visualizing IoT from a technicalperspective. Each of the seven layers is
broken down into specific functions, and security encompassesthe entire model. Figure
belowdetails the IoT Reference Model published by the IoTWF.

As shown in Figure 2-2, the IoT Reference Model defines a set of levels with control flowing
from thecenter (this could be either a cloud service or a dedicated data center), to the edge,
which includessensors, devices, machines, and other types of intelligent end nodes. In
general, data travels up the stack,originating from the edge, and goes northbound to the
center. Using this reference model, we are able toachieve the following:
 Decompose the IoT problem into smaller parts
 Identify different technologies at each layer and how they relate to one another
 Define a system in which different parts can be provided by different vendors
 Have a process of defining interfaces that leads to interoperability
 Define a tiered security model that is enforced at the transition points between
levels
The following sections look more closely at each of the seven layers of the IoT Reference
Model.
Layer 1: Physical Devices and Controllers Layer
The first layer of the IoT Reference Model is the physical devices and controllers layer. This
layer is hometo the “things” in the Internet of Things, including the various endpoint devices
and sensors that send andreceive information. The size of these “things” can range from
almost microscopic sensors to giantmachines in a factory. Their primary function is
generating data and being capable of being queriedand/or controlled over a network.
Layer 2: Connectivity Layer
In the second layer of the IoT Reference Model, the focus is on connectivity. The most
important functionof this IoT layer is the reliable and timely transmission of data. More
specifically, this includestransmissions between Layer 1 devices and the network and
between the network and informationprocessing that occurs at Layer 3 (the edge computing
layer).As you may notice, the connectivity layer encompasses all networking elements of IoT
and doesn’t reallydistinguish between the last-mile network (the network between the
sensor/endpoint and the IoT gateway,discussed later in this chapter), gateway, and
backhaul networks. Functions of the connectivity layer aredetailed in Figure 2-3.
Layer 3: Edge Computing Layer
Edge computing is the role of Layer 3. Edge computing is often referred to as the “fog” layer
and isdiscussed in the section “Fog Computing,” later in this chapter. At this layer, the
emphasis is on datareduction and converting network data flows into information that is
ready for storage and processing byhigher layers. One of the basic principles of this
reference model is that information processing is initiated
as early and as close to the edge of the network as possible. Figure 2-4 highlights the
functions handledby Layer 3 of the IoT Reference Model.

Another important function that occurs at Layer 3 is the evaluation of data to see if it can be
filtered oraggregated before being sent to a higher layer. This also allows for data to be
reformatted or decoded,making additional processing by other systems easier. Thus, a
critical function is assessing the data to seeif predefined thresholds are crossed and any
action or alerts need to be sent.

Upper Layers: Layers 4–7

The upper layers deal with handling and processing the IoT data generated by the bottom
layer. For thesake of completeness, Layers 4–7 of the IoT Reference Model are summarized
in Table 2-2.
M2M Communication

Machine-to-machine communication, or M2M, is exactly as it sounds: two machines

“communicating,” or exchanging data, without human interfacing or interaction. This
includes serial connection, powerline connection (PLC), or wireless communications in the
industrial Internet of Things (IoT). Switching over to wireless has made M2M communication
much easier and enabled more applications to be connected.

In general, when someone says M2M communication, they often are referring to cellular
communication for embedded devices. Examples of M2M communication in this case would
be vending machines sending out inventory information or ATM machines getting
authorization to despense cash.

As businesses have realized the value of M2M, it has taken on a new name: the Internet of
Things (IoT). IoT and M2M have similar promises: to fundamentally change the way the
world operates. Just like IoT, M2M allows virtually any sensor to communicate, which opens
up the possibility of systems monitoring themselves and automatically responding to
changes in the environment, with a much reduced need for human involvement. M2M and
IoT are almost synonymous—the exception is IoT (the newer term) typically refers to
wireless communications, whereas M2M can refer to any two machines—wired or
wireless—communicating with one another.
Traditionally, M2M focused on “industrial telematics,” which is a fancy way of explaining
data transfer for some commercial benefit. But many original uses of M2M still stand today,
like smart meters. Wireless M2M has been dominated by cellular since it came out in the
mid-2000’s with 2G cell networks. Because of this, the cellular market has tried to brand
M2M as an inherently cellular thing by offering M2M data plans. But cellular M2M is only
one subsection of the market, and it shouldn’t be thought of as a cellular-only area.

How M2M Works

As previously stated, machine-to-machine communication makes the Internet of Things

possible. According to Forbes, M2M is among the fastest-growing types of connected device
technologies in the market right now, largely because M2M technologies can connect
millions of devices within a single network. The range of connected devices includes
anything from vending machines to medical equipment to vehicles to buildings. Virtually
anything that houses sensor or control technology can be connected to some sort of
wireless network.

This sounds complex, but the driving thought behind the idea is quite simple. Essentially,
M2M networks are very similar to LAN or WAN networks, but are exclusively used to allow
machines, sensors, and controls, to communicate. These devices feed information they
collect back to other devices in the network. This process allows a human (or an intelligent
control unit) to assess what is going on across the whole network and issue appropriate
instructions to member devices.

M2M Applications

The possibilities in the realm of M2M can be seen in four major use cases, which we’ve
detailed below:

1. MANUFACTURING

Every manufacturing environment—whether it’s food processing or general product

manufacturing—relies on technology to ensure costs are managed properly and processes
are executed efficiently. Automating manufacturing processes within such a fast-paced
environment is expected to improve processes even more. In the manufacturing world, this
could involve highly automated equipment maintenance and safety procedures.

For example, M2M tools allow business owners to be alerted on their smartphones when an
important piece of equipment needs servicing, so they can address issues as quickly as they
arise. Sophisticated networks of sensors connected to the Internet could even order
replacement parts automatically.
2. HOME APPLIANCES

IoT already affects home appliance connectivity through platforms like Nest. However, M2M
is expected to take home-based IoT to the next level. Manufacturers like LG and Samsung
are already slowly unveiling smart home appliances to help ensure a higher quality of life for
occupants.

For example, an M2M-capable washing machine could send alerts to the owners’ smart
devices once it finishes washing or drying, and a smart refrigerator could automatically
order groceries from Amazon once its inventory is depleted. There are many more examples
of home automation that can potentially improve quality of life for residents, including
systems that allow members of the household to remotely control HVAC systems using their
mobile devices. In situations where a homeowner decides to leave work early, he or she
could contact the home heating system before leaving work to make sure the temperature
at home will be comfortable upon arrival.

3. HEALTHCARE DEVICE MANAGEMENT

One of the biggest opportunities for M2M technology is in the realm of health care. With
M2M technology, hospitals can automate processes to ensure the highest levels of
treatment. Using devices that can react faster than a human healthcare professional in an
emergency situation make this possible. For instance, when a patient’s vital signs drop
below normal, an M2M-connected life support device could automatically administer
oxygen and additional care until a healthcare professional arrives on the scene. M2M also
allows patients to be monitored in their own homes instead of in hospitals or care centers.
For example, devices that track a frail or elderly person’s normal movements can detect
when he or she has had a fall and alert a healthcare worker to the situation.

4. SMART UTILITY MANAGEMENT

In the new age of energy efficiency, automation will quickly become the new normal. As
energy companies look for new ways to automate the metering process, M2M comes to the
rescue, helping energy companies automatically gather energy consumption data, so they
can accurately bill customers. Smart meters can track how much energy a household or
business uses and automatically alert the energy company, which supplants sending out an
employee to read the meter or requiring the customer to provide a reading. This is even
more important as utilities move toward more dynamic pricing models, charging consumers
more for energy usage during peak times.

A few key analysts predict that soon, every object or device will need to be able to connect
to the cloud. This is a bold but seemingly accurate statement. As more consumers, users,
and business owners demand deeper connectivity, technology will need to be continually
equipped to meet the needs and challenges of tomorrow. This will empower a wide range of
highly automated processes, from equipment repairs and firmware upgrades to system
diagnostics, data retrieval, and analysis. Information will be delivered to users, engineers,
data scientists, and key decision-makers in real time, and it will eliminate the need for
guesswork.

The Value Of M2M

Growth in the M2M and IoT markets has been growing rapidly, and according to many
reports, growth will continue. Strategy Analytics believes that low power, wide-area
network (LPWAN) connections will grow from 11 million in 2014 to 5 billion in 2022.
And IDC says the market for worldwide IoT solutions will go from $1.9 trillion in 2013 to $7.1
trillion in 2020.

Many big cell operators, like AT&T and Verizon, see this potential and are rolling out their
own M2M platforms. Intel, PTC, and Wipro are are all marketing heavily in M2M and
working to take advantage of this major industry growth spurt. But there is still a great
opportunity for new technology companies to engage in highly automated solutions to help
streamline processes in nearly any type of industry. We’re certain we’ll see a huge influx of
companies who begin to innovate in this area in the next five years.

However, as the cost of M2M communication continues to decrease, companies must

determine how they will create value for businesses and customers. In our mind, the
opportunity and value for M2M doesn’t lie in the more traditional layers of the
communication world. Cell carriers and hardware manufacturers, for example, are
beginning to look into full-stack offerings that enable M2M and IoT product development.
We strongly believe value lies in the application side of things, and the growth in this
industry will be driven by smart applications from this point forward.

Companies shouldn’t think about IoT or M2M for the sake of IoT or M2M. Instead, they
should focus on optimizing their business models or providing new value for their
customers. For example, if you’re a logistics company like FedEx or UPS, you have obvious
choices for automated logistics decisions made by machines. But if you’re a retailer, the
transition to automation may not be as obvious. It’s one thing to think of a “cool”
automated process—say, creating advertising that is automatically tied to a specific
customer through the use of M2M technology—but before you move forward with the
process, you have to consider the value you’re getting out of it. How much does it cost to
implement? Will any company considering a move into the IoT space needs to understand
what its business model is, how it will make money, and how it will provide value for
customers or internal processes.
Architecture of IoT

Figure below has three layers, namely, the perception, network, and application layers.

(i) The perception layer is the physical layer, which has sensors for sensing and
gathering information about the environment. It senses some physical
parameters or identifies other smart objects in the environment.
(ii) The network layer is responsible for connecting to other smart things, network
devices, and servers. Its features are also used for transmitting and processing
sensor data.
(iii) The application layer is responsible for delivering application specific services to
the user. It defines various applications in which the Internet of Things can be
deployed, for example, smart homes, smart cities, and smart health.

The three-layer architecture defines the main idea of the Internet of Things, but
it is not sufficient for research on IoT because research often focuses on finer
aspects of the Internet of Things. That is why, we have many more layered
architectures proposed in the literature. One is the fivelayer architecture, which
additionally includes the processing and business layers [3–6]. The five layers are
perception, transport, processing, application, and business layers (see Figure 1).
The role of the perception and application layers is the same as the architecture
with three layers. We outline the function of the remaining three layers.

(i) The transport layer transfers the sensor data from the perception layer to
the processing layer and vice versa through networks such as wireless,
3G, LAN, Bluetooth, RFID, and NFC.
(ii) The processing layer is also known as the middleware layer. It stores,
analyzes, and processes huge amounts of data that comes from the
transport layer. It can manage and provide a diverse set of services to the
 lower layers. It employs many technologies such as databases, cloud
computing, and big data processing modules.
(iii) The business layer manages the whole IoT system, including applications,
business and profit models, and users’ privacy. The business layer is out
of the scope of this paper. Hence, we do not discuss it further.

Core IoT Functional Stack

The IoT network must be designed to support its unique requirements and constraints. This
section provides an overview of the full networking stack, from sensors all the way to the
applications layer.

The Core IoT Functional Stack IoT networks are built around the concept of “things,” or
smart objects performing functions and delivering new connected services. These objects
are “smart” because they use a combination of contextual information and configured goals
to perform actions. These actions can be self-contained (that is, the smart object does not
rely on external systems for its actions); however, in most cases, the “thing” interacts with
an external system to report information that the smart object collects, to exchange with
other objects, or to interact with a management platform. In this case, the management
platform can be used to process data collected from the smart object and also guide the
behavior of the smart object. From an architectural standpoint, several components have to
work together for an IoT network to be operational: “Things” layer: At this layer, the
physical devices need to fit the constraints of the environment in which they are deployed
while still being able to provide the information needed. Communications network layer:
When smart objects are not self-contained, they need to communicate with an external
system. In many cases, this communication uses a wireless technology. This layer has four
sublayers: Access network sublayer: The last mile of the IoT network is the access network.
This is typically made up of wireless technologies such as 802.11ah, 802.15.4g, and LoRa.
The sensors connected to the access network may also be wired. Gateways and backhaul
network sublayer: A common communication system organizes multiple smart objects in a
given area around a common gateway. The gateway communicates directly with the smart
objects. The role of the gateway is to forward the collected information through a longer-
range medium (called the backhaul) to a headend central station where the information is
processed. This information exchange is a Layer 7 (application) function, which is the reason
this object is called a gateway. On IP networks, this gateway also forwards packets from one
IP network to another, and it therefore acts as a router. Network transport sublayer: For
communication to be successful, network and transport layer protocols such as IP and UDP
must be implemented to support the variety of devices to connect and media to use. IoT
network management sublayer: Additional protocols must be in place to allow the headend
applications to exchange data with the sensors. Examples include CoAP and MQTT.
Application and analytics layer: At the upper layer, an application needs to process the
collected data, not only to control the smart objects when necessary, but to make intelligent
decision based on the information collected and, in turn, instruct the “things” or other
systems to adapt to the analyzed conditions and change their behaviors or parameters. The
following sections examine these elements and help you architect your IoT communication
network.

Layer 1: Things: Sensors and Actuators Layer

Most IoT networks start from the object, or “thing,” that needs to be connected.From an
architectural standpoint, the variety of smart object types, shapes, and needs drive the
variety of IoT protocols and architectures. There are myriad ways to classify smart objects.
One architectural classification could be:

 Battery-powered or power-connected: This classification is based on whether the

object carries its own energy supply or receives continuous power from an external
power source. Battery- powered things can be moved more easily than line-
powered objects. However, batteries limit the lifetime and amount of energy that
the object is allowed to consume, thus driving transmission range and frequency.
 Mobile or static: This classification is based on whether the “thing” should move or
always stay at the same location. A sensor may be mobile because it is moved from
one object to another (for example, a viscosity sensor moved from batch to batch in
a chemical plant) or because it is attached to a moving object (for example, a
location sensor on moving goods in a warehouse or factory floor). The frequency of
the movement may also vary, from occasional to permanent. The range of mobility
(from a few inches to miles away) often drives the possible power source.
 Low or high reporting frequency: This classification is based on how often the
object should report monitored parameters. A rust sensor may report values once a
month. A motion sensor may report acceleration several hundred times per second.
Higher frequencies drive higher energy consumption, which may create constraints
on the possible power source (and therefore the object mobility) and the
transmission range.
 Simple or rich data: This classification is based on the quantity of data exchanged at
each report cycle. A humidity sensor in a field may report a simple daily index value
(on a binary scale from 0 to 255), while an engine sensor may report hundreds of
parameters, from temperature to pressure, gas velocity, compression speed, carbon
index, and many others. Richer data typically drives higher power consumption. This
classification is often combined with the previous to determine the object data
throughput (low throughput to high throughput). You may want to keep in mind
that throughput is a combined metric. A medium-throughput object may send
simple data at rather high frequency (in which case the flow structure looks
 continuous), or may send rich data at rather low frequency (in which case the flow
structure looks bursty).
 Report range: This classification is based on the distance at which the gateway is
located. For example, for your fitness band to communicate with your phone, it
needs to be located a few meters away at most. The assumption is that your phone
needs to be at visual distance for you to consult the reported data on the phone
screen. If the phone is far away, you typically do not use it, and reporting data from
the band to the phone is not necessary. By contrast, a moisture sensor in the
asphalt of a road may need to communicate with its reader several hundred meters
or even kilometers away.
 Object density per cell: This classification is based on the number of smart objects
(with a similar need to communicate) over a given area, connected to the same
gateway. An oil pipeline may utilize a single sensor at key locations every few miles.
By contrast, telescopes like the SETI Colossus telescope at the Whipple Observatory
deploy hundreds, and sometimes thousands, of mirrors over a small area, each with
multiple gyroscopes, gravity, and vibration sensors.

Layer 2: Communications Network Layer

Once you have determined the influence of the smart object form factor over its
transmission capabilities (transmission range, data volume and frequency, sensor
density and mobility), you are ready to connect the object and communicate.
Compute and network assets used in IoT can be very different from those in IT
environments. The difference in the physical form factors between devices used by
IT and OT is obvious even to the most casual of observers. What typically drives this
is the physical environment in which the devices are deployed. What may not be as
inherently obvious, however, is their operational differences. The operational
differences must be understood in order to apply the correct handling to secure the
target assets. Temperature variances are an easily understood metric. The cause for
the variance is easily attributed to external weather forces and internal operating
conditions. Remote external locations, such as those associated with mineral
extraction or pipeline equipment can span from the heat of the Arabian Gulf to the
cold of the Alaskan North Slope. Controls near the furnaces of a steel mill obviously
require heat tolerance, and controls for cold food storage require the opposite. In
some cases, these controls must handle extreme fluctuations as well. These
extremes can be seen within a single deployment. For example, portions of the
Tehachapi, California, wind farms are located in the Mojave Desert, while others are
at an altitude of 1800 m in the surrounding mountains. As you can imagine, the wide
variance in temperature takes a special piece of hardware that is capable of
withstanding such harsh environments. Humidity fluctuations can impact the long-
term success of a system as well. Well heads residing in the delta of the Niger River
will see very different conditions from those in the middle of the Arabian Desert. In
some conditions, the systems could be exposed to direct liquid contact such as may
be found with outdoor wireless devices or marine condition deployments. Less
obvious are the operating extremes related to kinetic forces. Shock and vibration
needs vary based on the deployment scenario. In some cases, the focus is on low-
amplitude but constant vibrations, as may be expected on a bushing-mounted
manufacturing system. In other cases, it could be a sudden acceleration or
deceleration, such as may be experienced in peak ground acceleration of an
earthquake or an impact on a mobile system such as high-speed rail or heavy-duty
earth moving equipment. Solid particulates can also impact the gear. Most IT
environments must contend with dust build-up that can become highly concentrated
due to the effect of cooling fans. In less-controlled IT environments, that
phenomenon can be accelerated due to higher concentrations of particulates. A
deterrent to particulate build-up is to use fanless cooling, which necessitates a
higher surface area, as is the case with heat transfer fins. Hazardous location design
may also cause corrosive impact to the equipment. Caustic materials can impact
connections over which power or communications travel. Furthermore, they can
result in reduced thermal efficiency by potentially coating the heat transfer surfaces.
In some scenarios, the concern is not how the environment can impact the
equipment but how the equipment can impact the environment. For example, in a
scenario in which volatile gases may be present, spark suppression is a critical design
criterion. There is another class of device differentiators related to the external
connectivity of the device for mounting or industrial function. Device mounting is
one obvious difference between OT and IT environments. While there are rack
mount environments in some industrial spaces, they are more frequently found
among IT type assets. Within industrial environments, many compute and
communication assets are placed within an enclosed space, such as a control cabinet
where they will be vertically mounted on a DIN (Deutsches Institut für Normung) rail
inside. In other scenarios, the devices might be mounted horizontally directly on a
wall or on a fence. In contrast to most IT-based systems, industrial compute systems
often transmit their state or receive inputs from external devices through an alarm
channel. These may drive an indicator light (stack lights) to display the status of a
process element from afar. This same element can also receive inputs to initiate
actions within the system itself. Power supplies in OT systems are also frequently
different from those commonly seen on standard IT equipment. A wider range of
power variations are common attributes of industrial compute components. DC
power sources are also common in many environments. Given the criticality of many
systems, it is often required that redundant power supplies be built into the device
itself. Extraneous power supplies, especially those not inherently mounted, are
frowned upon, given the potential for accidental unplugging. In some utility cases,
the system must be able to handle brief power outages and still continue to operate.
  Access Network Sublayer

There is a direct relationship between the IoT network technology you choose and
the type of connectivity topology this technology allows. Each technology was
designed with a certain number of use cases in mind (what to connect, where to
connect, how much data to transport at what interval and over what distance).
These use cases determined the frequency band that was expected to be most
suitable, the frame structure matching the expected data pattern (packet size and
communication intervals), and the possible topologies that these use cases illustrate.
As IoT continues to grow exponentially, you will encounter a wide variety of
applications and special use cases. For each of them, an access technology will be
required. IoT sometimes reuses existing access technologies whose characteristics
match more or less closely the IoT use case requirements. Whereas some access
technologies were developed specifically for IoT use cases, others were not. One key
parameter determining the choice of access technology is the range between the
smart object and the information collector. Figure 2-9 lists some access technologies
you may encounter in the IoT world and the expected transmission distances.

PAN (personal area network): Scale of a few meters. This is the personal space
around a person. A common wireless technology for this scale is Bluetooth.

HAN (home area network): Scale of a few tens of meters. At this scale, common
wireless technologies for IoT include ZigBee and Bluetooth Low Energy (BLE).

NAN (neighborhood area network): Scale of a few hundreds of meters. The term
NAN is often used to refer to a group of house units from which data is collected.

FAN (field area network): Scale of several tens of meters to several hundred meters.
FAN typically refers to an outdoor area larger than a single group of house units. The
FAN is often seen as “open space” (and therefore not secured and not controlled). A
FAN is sometimes viewed as a group of NANs, but some verticals see the FAN as a
group of HANs or a group of smaller outdoor cells. As you can see, FAN and NAN may
sometimes be used interchangeably. In most cases, the vertical context is clear
enough to determine the grouping hierarchy.

LAN (local area network): Scale of up to 100 m. This term is very common in
networking, and it is therefore also commonly used in the IoT space when standard
networking technologies (such as Ethernet or IEEE 802.11) are used. Other
networking classifications, such as MAN (metropolitan area network, with a range of
up to a few kilometers) and WAN (wide area network, with a range of more than a
few kilometers), are also commonly used.
Network Transport Sublayer

The previous section describes a hierarchical communication architecture in which a

series of smart objects report to a gateway that conveys the reported data over
another medium and up to a central station. However, practical implementations are
often flexible, with multiple transversal communication paths. For example, consider
the case of IoT for the energy grid. Your house may have a meter that reports the
energy consumption to a gateway over a wireless technology. Other houses in your
neighborhood (NAN) make the same report, likely to one or several gateways. The
data to be transported is small and the interval is large (for example, four times per
hour), resulting in a low-mobility, lowthroughput type of data structure, with
transmission distances up to a mile. Several technologies (such as 802.11ah,
802.15.4, or LPWA) can be used for this collection segment. Other neighborhoods
may also connect the same way, thus forming a FAN.

IoT Network Management Sublayer

IP, TCP, and UDP bring connectivity to IoT networks. Upper-layer protocols need to
take care of data transmission between the smart objects and other systems.
Multiple protocols have been leveraged or created to solve IoT data communication
problems. Some networks rely on a push model (that is, a sensor reports at a regular
interval or based on a local trigger), whereas others rely on a pull model (that is, an
application queries the sensor over the network), and multiple hybrid approaches
are also possible.

Layer 3: Applications and Analytics Layer

Once connected to a network, your smart objects exchange information with other
systems. As soon as your IoT network spans more than a few sensors, the power of
the Internet of Things appears in the applications that make use of the information
exchanged with the smart objects. Analytics Versus Control Applications Multiple
applications can help increase the efficiency of an IoT network. Each application
collects data and provides a range of functions based on analyzing the collected
data. It can be difficult to compare the features offered. Chapter 7, “Data and
Analytics for IoT,” provides an in-depth analysis of the various application families.
From an architectural standpoint, one basic classification can be as follows: Analytics
application: This type of application collects data from multiple smart objects,
processes the collected data, and displays information resulting from the data that
was processed. The display can be about any aspect of the IoT network, from
historical reports, statistics, or trends to individual system states. The important
aspect is that the application processes the data to convey a view of the network
that cannot be obtained from solely looking at the information displayed by a single
smart object. Control application: This type of application controls the behavior of
the smart object or the behavior of an object related to the smart object. For
example, a pressure sensor may be connected to a pump. A control application
increases the pump speed when the connected sensor detects a drop in pressure.
Control applications are very useful for controlling complex aspects of an IoT
network with a logic that cannot be programmed inside a single IoT object, either
because the configured changes are too complex to fit into the local system or
because the configured changes rely on parameters that include elements outside
the IoT object.

Fog Computing

The solution to the challenges mentioned in the previous section is to distribute data
management throughout the IoT system, as close to the edge of the IP network as
possible. The best-known embodiment of edge services in IoT is fog computing. Any
device with computing, storage, and network connectivity can be a fog node.
Examples include industrial controllers, switches, routers, embedded servers, and
IoT gateways. Analyzing IoT data close to where it is collected minimizes latency,
offloads gigabytes of network traffic from the core network, and keeps sensitive data
inside the local network.

Fog services are typically accomplished very close to the edge device, sitting as close
to the IoT endpoints as possible. One significant advantage of this is that the fog
node has contextual awareness of the sensors it is managing because of its
geographic proximity to those sensors. For example, there might be a fog router on
an oil derrick that is monitoring all the sensor activity at that location. Because the
fog node is able to analyze information from all the sensors on that derrick, it can
provide contextual analysis of the messages it is receiving and may decide to send
back only the relevant information over the backhaul network to the cloud. In this
way, it is performing distributed analytics such that the volume of data sent
upstream is greatly reduced and is much more useful to application and analytics
servers residing in the cloud.

The defining characteristic of fog computing are as follows:

Contextual location awareness and low latency: The fog node sits as close to the IoT
endpoint as possible to deliver distributed computing.

Geographic distribution: In sharp contrast to the more centralized cloud, the

services and applications targeted by the fog nodes demand widely distributed
deployments.

Deployment near IoT endpoints: Fog nodes are typically deployed in the presence of
a large number of IoT endpoints. For example, typical metering deployments often
see 3000 to 4000 nodes per gateway router, which also functions as the fog
computing node.

Wireless communication between the fog and the IoT endpoint: Although it is
possible to connect wired nodes, the advantages of fog are greatest when dealing
with a large number of endpoints, and wireless access is the easiest way to achieve
such scale.

Use for real-time interactions: Important fog applications involve real-time

interactions rather than batch processing. Preprocessing of data in the fog nodes
allows upper-layer applications to perform batch processing on a subset of the data.

Edge Computing

Fog computing solutions are being adopted by many industries, and efforts to
develop distributed applications and analytics tools are being introduced at an
accelerating pace. The natural place for a fog node is in the network device that sits
closest to the IoT endpoints, and these nodes are typically spread throughout an IoT
network. However, in recent years, the concept of IoT computing has been pushed
even further to the edge, and in some cases it now resides directly in the sensors and
IoT devices.
Functional blocks of an IoT ecosystem

IoTdon’t exist in a void. A lone sensor isn’t really good for anything, nor is a bunch of them,
for that matter, unless they are all connected to one another and to platforms that generate
data for further use. This is what we call an Internet of Things (IoT) ecosystem – a broad
network of connected and interdependent devices and technologies that are applied by
specialists towards a specific goal, such as the creation of a smart city.
Obviously, there are limitless applications to the IoT and therefore we can speak of endless
coexisting IoT ecosystems. But if you boil what is happening in the ecosystem down to the
bare essentials, you will come up with a simple schema: a device collects data and sends it
across the network to a platform that aggregates the data for future use by the agent. And
so we have the key components to an IoT ecosystem: devices, networks, platforms, and
agents. Let’s discuss them in more detail.

Four things form basic building blocks of the IoT system –sensors, processors, gateways,
applications. Each of these nodes has to have its own characteristics in order to form an
useful IoT system.
 Figure 1: Simplified block diagram of the basic building blocks of the IoT

Sensors:

 These form the front end of the IoT devices. These are the so-called “Things” of the
system. Their main purpose is to collect data from its surroundings (sensors) or give
out data to its surrounding (actuators).
 These have to be uniquely identifiable devices with a unique IP address so that they
can be easily identifiable over a large network.
 These have to be active in nature which means that they should be able to collect
real-time data. These can either work on their own (autonomous in nature) or can be
made to work by the user depending on their needs (user-controlled).
 Examples of sensors are gas sensor, water quality sensor, moisture sensor, etc.

Processors:

 Processors are the brain of the IoT system. Their main function is to process the data
captured by the sensors and process them so as to extract the valuable data from
the enormous amount of raw data collected. In a word, we can say that it gives
intelligence to the data.
 Processors mostly work on real-time basis and can be easily controlled by
applications. These are also responsible for securing the data – that is performing
encryption and decryption of data.
 Embedded hardware devices, microcontroller, etc are the ones that process the data
because they have processors attached to it.

Gateways:

 Gateways are responsible for routing the processed data and send it to proper
locations for its (data) proper utilization.
 In other words, we can say that gateway helps in to and fro communication of the
data. It provides network connectivity to the data. Network connectivity is essential
for any IoT system to communicate.
 LAN, WAN, PAN, etc are examples of network gateways.
Applications:

 Applications form another end of an IoT system. Applications are essential for proper
utilization of all the data collected.
 These cloud-based applications which are responsible for rendering the effective
meaning to the data collected. Applications are controlled by users and are a
delivery point of particular services.
 Examples of applications are home automation apps, security systems, industrial
control hub, etc.

IoT devices

As we said earlier, there are many scenarios in which IoT can be employed and they all
require different devices. Here, at the most basic level, we can speak of sensors (i.e. devices
that sense things, such as temperature, motion, particles, etc.) and actuators (i.e. devices
that act on things, such as switches or rotors).
Rarely, though, will a smart solution make do with just one type of an IoT sensor or an
actuator. If you think of a smart surgical robot, for example, it will require hundreds, if not
thousands, of components that measure different parameters and act accordingly. But even
apparently less complicated solutions aren’t truly that easy. Consider running a smart farm –
for a plant to grow, it’s not just a matter of measuring the humidity of the soil, but also its
fertility; it’s also a matter of providing proper irrigation based on insolation, and much more.
So you need not just one, but many sensors and actuators that all have to work together.

When speaking of devices essential for the IoT ecosystem, one cannot forget about IoT
gateways. They are a piece of hardware that is capable of “translating” and facilitating the
essential connection between devices or between devices and the network and work as a
kind of relay for the two. Which brings us to the next element of our puzzle…
Networks

Based on what you read before, you may think: “Well, if an automatic door senses my
presence and opens itself, is that IoT?” Obviously, it is not, because while that door has
sensors and actuators, it is not connected to much else. And, as the name suggests, the
Internet of Things requires both things and the Internet (although there are cases of data
delivery without the use of the Internet Protocol). Arguably, the real power of this
concept lies in the connectivity.
Again, based on your deployment needs, there are plenty of different IoT connectivity
options, starting with the “classics,” such as WiFi or Bluetooth, to more specialized and field-
oriented technologies, such as Low-Power Wide Area Networks (LPWAN). They all differ in
range and speed of data transfer, making them more or less appropriate for particular
deployments. Consider, for example, smart cars that require both high data speed and long
range and juxtapose them with the smart farms we’ve mentioned that don’t necessarily
need either.

IoT platform

Whether they are in the cloud or not, IoT platforms are always the binder for any IoT
ecosystem. They are the quiet administrators that take care of device lifecycle
management, so that you don’t have to worry about them. They are also the hub that
collects and aggregates the data, allowing you to make sense of it. With the variety of
platforms offered on the market and the breadth of claims their providers make, the choice
of the “ideal” IoT platform for a deployment is arguably the most significant, yet also the
most difficult to make. It shouldn’t be taken lightly, as it determines whether the IoT
ecosystem will thrive or wither into oblivion.
The right IoT device management platform should be versatile and adaptable, as the IoT
world is very fragmented and constantly shifting and you don’t want the core element of
your ecosystem to become the stumbling block of your deployment. It should also be
scalable, so that your ecosystem can grow naturally, and secure, so it can do so without any
threats.

Agents

Agents are all the people whose actions affect the IoT ecosystem. These may be the
engineers who devise IoT deployments and design the platforms, it can also be the platform
operators. But probably, most importantly, it’s the stakeholders, who ultimately reap the
results. After all, IoT deployments aren’t just art for art’s sake. These complex ecosystems
are put in place for a reason: to drive efficiency and improve the quality of life. And it is
the agents who decide on how to use the devices, networks and platforms to achieve
these results. This is where technology and business converge, because it’s business goals
that very much shape the IoT ecosystem.
People are an essential part of this equation. Ecosystems are created by us, managed by us
and, ultimately, it is our responsibility to realize their full potential. It is the devices that
collect the data, but it is the people that make sense of it and put it to use. Similarly with
networks and platforms, which are a necessary component of the ecosystem, but wouldn’t
be of much value if it weren’t for the people who create and perfect them to fit their needs.

As was said, an IoT ecosystem is a very complex concept that eludes easy classification, as
its characteristics vary from deployment to deployment. Much like our world, the IoT
world comprises numerous different ecosystems that evolve and adapt. What they have in
common is the idea and the people that make them happen: device manufacturers, service
providers, application developers, and enterprises. Yet in this ever changing landscape
there still remains a lot of variety – the technology, represented by the devices, networks
and platforms, always gets better. This is particularly worth remembering, because the one
mistake the inhabitants of an IoT ecosystem should never make, is to take it for granted.
There is nothing more toxic for that landscape than stagnation and lock-in, so you should
always be on the lookout for newer, better technologies that will help you flourish.