From the course: IoT Foundations: Fundamentals

Overview of external systems

- [Narrator] External systems are one of the four main components of the IoT product. They include all the sources of data on the internet that can be accessed by an API. There are four main components to external systems. The first one is analytics, where data is transformed into information. The next is data services, these are sources of data available on the internet. Business systems provide internal operational data that could be useful to the product. And finally, the last source of data are other IoT products. It is this interfacing with these external sources of data that differentiates the IoT product from the connected product and the smart product, just like any other software on the internet. The virtualized IoT product can interface with these external systems the same way. This opens up massive amounts of functionality previously available only to software and in doing so, changes the definition of what a physical product is. All incremental value for an IoT product comes from transforming its data into useful information. External systems are one of the two main sources of data in IoT.

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