If any rain has to fall there must be the formation of black/thick clouds, the similar analogy holds good for IOT, if IOT devices need to be activated and to serve the purpose, they need the data from the so-called cloud computers. So without cloud computers, IOT doesn't work. The cloud in this case not only supports data but also offloads computing task from IOT.
That's the reason why companies such as IBM are investing hugely to build a cloud-based open platform to support IOT.
IBM said it will invest $3 billion over the next four years to establish a new Internet of Things (IoT) unit, and that it is building a cloud-based open platform designed to help clients and ecosystem partners build IoT solutions.
IOT and Cloud computers make any device, city, or the planet smart. Any small and medium enterprises can design IOT enabled devices for range of applications. But to develop a cloud computer it can only be done by big enterprises or government agencies. It is more or less an essential infrastructure for the modern smart digital world.
Cloud computer technologies becoming important irrespective of the economic status of the region, they need to be utilised to save precious resources such as water, prevent accidents and many such public services.
Today's electronics and IT/mobile systems generate huge data, there need to be set of intelligent tools to churn this so called big- data into intelligence. IBM says it estimates that 90 percent of all data generated by devices such as smartphones, tablets, connected vehicles and appliances is never analyzed or acted on. As much as 60 percent of this data begins to lose value within milliseconds of being generated.