• Connection layer for physical devices, such as industrial or home sensors, thermostats, etc
• Interoperability, security and reliability of IoT systems may be a barrier to entry
• Will evolve into a Social Network of Things (SNT) where devices can better connect to and negotiate with other devices; see causeit.org/SNT for more information

Examples:

• “Smart” power meters
• Phillips Hue
• Nest Thermostat
• Withings