The term Internet of Things (IoT) may sound vague, but IoT is simply a system in which physical objects are fitted with data-gathering sensors and connected to the internet for monitoring. IoT makes network devices work for their users to guarantee cost savings and quality control.
When an HVAC system can self-report that it needs a filter change, that's IoT at work. Trendy, wearable fitness equipment such as FitBit is also an example of IoT, as the device gathers data about the wearer and wirelessly uploads it to the internet for analysis. Essentially, IoT is about gathering an array of meaningful data from objects in the environment in an organized, useful way.