From M2M to IoT to IoE: How Connectivity Terms Evolved

For anyone following the connected‑devices industry, the terminology has evolved from “Machine‑to‑Machine” (M2M) to the broader “Internet of Things” (IoT), and more recently to the Cisco‑driven “Internet of Everything” (IoE). Although these acronyms sometimes overlap, each carries distinct implications for how devices, people, processes, and data interact on a network.

Machine‑to‑Machine (M2M)

M2M was the original label for devices that could exchange data directly. Its roots trace back to the 1970s when Theodore Paraskevakos patented the first Caller ID system—an early example of device‑to‑device communication. Today, M2M typically refers to machine connections over cellular or satellite networks, supported by vendors such as AT&T, Verizon, Telit, Sierra Wireless, and Jasper.

Because M2M relies on paid network access, customers must cover data fees, purchase often expensive hardware, and manage costly device certifications. Power consumption is another challenge: cellular and satellite links draw significant current, limiting their use in battery‑powered IoT endpoints. Nevertheless, M2M remains valuable for applications that require continuous power, such as fleet tracking, alarm panels, industrial monitoring, and smart vending.

Despite these constraints, the M2M market is set for steady growth. GSMA Intelligence data shows that mobile‑network‑based M2M connections rose from 7 % of all M2M links in 2014 to 14 % by 2020, a trend highlighted in a recent Telekom article.

The Internet of Things (IoT)

The term “Internet of Things” was coined in 1999 by British technologist Kevin Ashton to describe the transfer of data from physical objects to the internet. Since then, IoT has become the umbrella term for all non‑telecom‑driven connected devices. Its focus is on autonomous data collection, sensor‑driven decision making, process automation, and deriving business value from connectivity.

Low‑power, wide‑area network (LPWAN) operators are developing longer‑range wireless technologies that can create a “bubble of connectivity,” covering entire buildings or city blocks. Global projections indicate that IoT technology could be worth as much as $6.2 trillion by 2025, with 26 smart objects per person worldwide by 2020.

The Internet of Everything (IoE)

IoE is a Cisco‑driven marketing concept that expands the IoT definition to include people, processes, data, and things. Cisco argues that this holistic view unlocks greater value, estimating $14.4 trillion in potential benefits between 2013 and 2022. While the distinction between IoT and IoE remains debated, the term’s adoption will likely grow as more organizations seek to integrate people and processes into their connected ecosystems.

In Conclusion

The connected‑device landscape is poised for transformative growth, and new terminology may emerge as the industry matures. What buzzword do you anticipate will shape the next decade? Let us know by tweeting @LinkLabsInc.