IoT devices normally send data to the cloud for processing. Its huge processing power enables the execution of complex algorithms, machine learning and artificial intelligence to extract maximum value from the data.
Analysis of the data is where the real value is unlocked and many IoT companies build their value proposition around this.
For example, a business manufactures and sells hardware for sensing the movement of people or traffic through an area. Analytics are performed on the captured data. These analytics can be used to detect trends or anomalies in the movement of people or traffic, which becomes a “service” they can sell to improve the efficiency of other systems.