This term refers to the virtual representation of physical objects, as opposed to data and information, in an internet-like structure.

It was first used by Kevin Ashton in 1999; "...today's information technology is so dependent on data originated by people that our computers know more about ideas than things. If we had computers that knew everything there was to know about things—using data they gathered without any help from us—we would be able to track and count everything, and greatly reduce waste, loss and cost. We would know when things needed replacing, repairing or recalling, and whether they were fresh or past their best. The Internet of Things has the potential to change the world, just as the Internet did. Maybe even more so." (Kevin Ashton: That 'Internet of Things' Thing. In: RFID Journal, 22 July 2009. Retrieved 8 April 2011.)