98  Device Evolution: Embedded, Connected, and IoT Products

98.1 Learning Objectives

By the end of this chapter, you will be able to:

  • Distinguish device categories: Classify devices as Embedded, Connected, or IoT
  • Understand embedded systems: Recognize the foundational role of embedded systems in IoT
  • Trace technology evolution: Appreciate how ARM Cortex-M and BLE enabled practical IoT
  • Evaluate product positioning: Determine whether a product is truly “smart” or just connected

IoT Overview Series: - IoT Introduction - Getting started with IoT and the Five Verbs - IoT Requirements and Characteristics - Minimum requirements and ideal characteristics - IoT Perspectives and Definitions - Different stakeholder views on IoT - IoT History and Paradigm Shifts - Lessons from technology evolution

Technical Deep Dives: - Sensor Fundamentals - Sensors in embedded and IoT systems - Bluetooth Low Energy - BLE protocol details

98.2 Comparing Embedded, Connected, and IoT Products

Time: ~10 min | Level: Intermediate | ID: P03.C01.U07

The evolution from embedded systems to the Internet of Things represents a fundamental transformation in how devices interact with the world. Understanding these three distinct eras - Embedded Systems, Connected Devices, and Internet of Things - is crucial for recognizing the true innovation and value that IoT brings to modern technology.

98.2.1 The Three Eras of Device Evolution

Modern IoT devices didn’t appear overnight. They evolved through three distinct technological eras, each building on the previous generation’s capabilities while adding fundamentally new features.

TipMVU: Device Evolution Timeline

Core Concept: IoT emerged from three distinct eras: Embedded Systems (1970s-1990s) with isolated, single-purpose devices; Connected Devices (1990s-2000s) adding internet connectivity for remote control; and true IoT (2010s+) adding intelligence that learns from data and makes autonomous decisions.

Why It Matters: Many marketed “smart” devices are actually just Connected (remote control) rather than IoT (intelligent). Understanding this distinction prevents overpaying for features and guides realistic project planning.

Key Takeaway: True IoT requires all three ingredients: a physical Thing + Computation + Internet connectivity + Intelligence that adapts based on data. Remove any one, and it’s not truly IoT.

Timeline diagram showing evolution from Embedded to Connected to IoT

Mermaid diagram
Figure 98.1

98.2.2 Comprehensive Comparison: Embedded vs Connected vs IoT

The table below highlights the fundamental differences across seven key dimensions that distinguish embedded systems, connected devices, and true IoT products:

Characteristic Embedded Systems (1970s-1990s) Connected Devices (1990s-2000s) Internet of Things (2010s+)
Connectivity None - operates in isolation Point-to-point or proprietary protocols Internet/Cloud via standard protocols (HTTP, MQTT, CoAP)
Intelligence Fixed program in ROM/Flash Remote updates possible, but behavior still fixed Edge AI, machine learning, adaptive behavior based on data patterns
Data Flow Local storage only (if any) Periodic uploads to central server Real-time bidirectional streaming with cloud analytics
Interoperability Proprietary, vendor-locked Vendor-specific APIs and protocols Standards-based (IEEE, IETF, OCF) enabling multi-vendor ecosystems
Scale Thousands per application domain Millions deployed globally Billions of devices worldwide (~20 billion in 2025, projected 40+ billion by 2034)
Decision-Making Pre-programmed logic only Remote commands from human operators Autonomous decisions based on sensor fusion, ML models, and context
Examples Washing machine timer, digital thermostat, microwave controller Wi-Fi thermostat (manual control via app), connected security camera Nest Learning Thermostat, smart factory with predictive maintenance

98.2.3 Embedded Products (1970s-1990s)

Definition

Embedded products rely on internal (embedded) systems to perform focused tasks. They typically operate as standalone devices with limited interaction or networking capabilities. An embedded system is purpose-built for a single, specific function with minimal resources.

Key Characteristics: - Fixed functionality: Cannot adapt or learn from experience - Standalone operation: No external communication or updates - Resource-constrained: Minimal memory, processing power optimized for cost - Deterministic behavior: Same input always produces same output

Example

A traditional washing machine equipped with a programmable timer. Function: The timer enables scheduled operations but lacks any form of network connectivity. You set the cycle manually, and it executes the same pre-programmed sequence every time.

Value

  • Benefit: Offers basic functionality and reliability for a single, specific task. Low cost, predictable behavior, no security vulnerabilities from network exposure.
  • Limitation: Minimal added value because the device operates independently without external communication. Cannot be updated, monitored remotely, or optimized based on usage patterns.

98.2.4 Connected Products (1990s-2000s)

Definition

Connected products build on embedded systems by adding internet connectivity. This allows devices to communicate with users or other systems, offering features such as remote control and real-time notifications. However, they typically lack the intelligence to make autonomous decisions based on data.

Key Characteristics: - Internet-enabled: Can send/receive data over networks - Remote control: Operated via smartphone apps or web interfaces - Cloud storage: Data uploaded to centralized servers - Human-in-the-loop: Requires user commands for most actions

Example

A washing machine that sends smartphone alerts when the wash cycle is complete. Function: Provides notifications and can be controlled or monitored remotely. You can start a cycle from your phone, but you still manually select the wash settings - the machine doesn’t learn your preferences or optimize automatically.

Value

  • Benefit: Improves convenience and user engagement through connectivity. Enables remote monitoring, firmware updates, and basic automation (scheduled operations).
  • Limitation: Moderate impact on overall efficiency, as connectivity focuses on basic remote interactions and status updates. Still requires human decision-making for optimization - it’s a “remote control” not a “smart assistant.”

98.2.5 IoT Products (2010s-Present)

Definition

IoT products represent the most advanced stage, combining embedded technology, connectivity, and intelligent decision-making. These devices leverage data analytics, machine learning algorithms, and sensor fusion to optimize performance, adapt to user behavior, and interact autonomously with other systems.

Key Characteristics: - Autonomous intelligence: Makes decisions without human intervention - Machine learning: Learns patterns and improves over time - Sensor fusion: Combines multiple data sources for context awareness - Ecosystem integration: Communicates with other IoT devices and cloud services - Edge computing: Processes data locally for real-time responses

Example

A smart washing machine that automatically selects optimal washing cycles based on water usage, energy efficiency, and load type. Function: Uses data analysis and predefined logic to enhance resource management and user convenience. It detects fabric types via sensors, learns your usage patterns (you always wash jeans on Wednesdays), adjusts water temperature based on energy prices from the smart grid, and orders detergent automatically when running low.

Value

  • Benefit: High-level impact through resource savings, time efficiency, and continuous optimization. Reduces water consumption by 30%, energy by 25%, and delivers perfectly cleaned clothes based on learned preferences. Integrates with smart home ecosystem (starts cycle when solar panels generate excess power).
  • Limitation: May require more complex infrastructure, data management, and security considerations. Higher upfront cost, ongoing cloud service fees, privacy concerns about usage data, and potential security vulnerabilities if not properly secured.

98.2.6 Visual Evolution: Embedded -> Connected -> IoT

Three-stage evolution diagram showing: (1) Embedded Era - microcontroller-based device with local processing only; (2) Connected Era - internet-enabled device with cloud connectivity but limited intelligence; (3) IoT Era - fully intelligent system with edge AI, cloud analytics, and ecosystem integration.
Figure 98.2: Evolution from embedded products to connected products to full IoT products

98.2.7 Why This Evolution Matters

Understanding the differences among these categories is essential for grasping the transformative potential of IoT in various industries. IoT products not only enhance functionality but also deliver smarter, more sustainable solutions.

Real-World Impact by Era:

Era Typical Cost Development Time Business Value Customer Value
Embedded $50-200 6-12 months Low margins, commodity pricing Basic functionality, reliable
Connected $100-400 12-18 months Premium pricing for connectivity Convenience, remote access
IoT $200-800+ 18-36 months Recurring revenue, ecosystem lock-in Personalization, automation, cost savings

Key Takeaway: The progression from Embedded -> Connected -> IoT represents not just technological advancement, but a fundamental shift in business models (one-time sale -> subscription services), value proposition (features -> outcomes), and customer relationships (transactional -> ongoing engagement).

Scenario: A kitchen appliance manufacturer is planning their product roadmap for the next 5 years. They currently sell three microwave models and want to understand their competitive positioning:

Model A (Budget): Digital timer, preset power levels, mechanical door sensor. Price: $99 Model B (Premium): Model A features + Wi-Fi connectivity for remote start via smartphone app and recipe downloads. Price: $249 Model C (Innovation): Model B features + weight sensors, humidity monitoring, and ML algorithms that automatically adjust cooking time and power based on food type. Price: $399

Question: How should each model be classified in the Embedded -> Connected -> IoT evolution framework?

Answer: Model A is Embedded, Model B is Connected, Model C is IoT

Classification Breakdown:

Model A (Embedded Device): - Thing: Physical microwave - Computation: Digital timer, preset controls - Internet: No connectivity - Value: Basic functionality, operates independently

Model B (Connected Device): - Thing: Physical microwave - Computation: Digital controls + app interface - Internet: Wi-Fi for remote control - Value: Convenience (remote start, recipe downloads) - Limitation: No intelligent decision-making, just remote control

Model C (IoT Device): - Thing: Physical microwave - Computation: Advanced processing + ML - Internet: Wi-Fi + cloud analytics - Intelligence: Sensors + algorithms optimize cooking automatically - Value: Autonomous optimization, learns food types, prevents overcooking

Real-World Parallel - Thermostats: - Embedded: Honeywell programmable ($50) - set schedule manually - Connected: ecobee3 lite ($140) - control remotely via app - IoT: Google Nest ($250) - learns your schedule, auto-optimizes, saves 10-20% energy

The “Connected” Gap: Many “smart” devices struggle because they’re Connected, not IoT: - Remote control is nice-to-have, not must-have - Customers won’t pay 2-3x for convenience alone - True IoT (intelligence) solves real problems customers will pay for

98.3 What is an Embedded System?

Time: ~5 min | Level: Foundational | ID: P03.C01.U08

An embedded system is a computer system that combines a computer processor, memory, and input/output peripheral devices to perform a dedicated function within a larger mechanical or electrical system. These systems are purpose-built and optimized for specific applications.

TipDefining Principle

“An embedded system is a computerized system that is purpose-built for its application.”

  • Elicia White, Making Embedded Systems (O’Reilly)

This definition has deep implications for how embedded systems are designed:

  1. Minimize cost / Maximize lifetime for a given expected workload
  2. Optimized, custom software that uses as few resources as possible
  3. No general-purpose bloat - every byte of code and every milliamp of power must justify its existence

Unlike desktop software where you can always throw more RAM or CPU at a problem, embedded systems force engineers to make hard trade-offs. This is why IoT firmware developers often write in C rather than Python - the efficiency gains directly translate to lower costs, longer battery life, and more reliable operation.

Key Characteristics of Embedded Systems

  • Purpose-Built Functionality: Embedded systems are designed to perform a single, specialized task, making them highly efficient in operation.
  • Low Power Consumption: Due to their focused functionality, embedded systems operate with minimal power requirements, allowing them to fit in small spaces and extend device longevity.
  • Cost-Effective: Embedded systems are typically inexpensive, making them an economical solution for controlling devices in various applications.
  • Market Dynamics: Embedded systems markets often operate within tight margins, such as in household appliances and consumer electronics.
  • Optimization Requirements: Designers must optimize code and use minimal microcontroller resources to keep costs low and efficiency high.

Applications

Embedded systems are found in numerous devices and industries, including: - Home appliances (e.g., washing machines, microwaves) - Automotive systems - Medical devices - Industrial machinery

Block diagram of an embedded system showing the key components: sensors, analog-to-digital converters (ADC), microprocessor or microcontroller, digital-to-analog converters (DAC), and actuators arranged in a typical signal processing chain
Figure 98.3: Diagram of an embedded system showing components like processors, converters, and amplifiers.

Embedded systems are fundamental to modern electronics, providing tailored solutions to a wide range of technological challenges.

98.3.1 Two Game-Changing Technologies for IoT

Two breakthrough technologies in the mid-2000s made practical IoT possible:

TipARM Cortex-M Series (2004): Ultra-Low-Power Computing

The ARM Cortex-M processor family revolutionized embedded computing:

  • First ultra-low-power 32-bit processor designed for embedded applications
  • Resources: 8-96 KB RAM, 64-512 KB code flash
  • Game-changer: Sleep currents recently dropped below 1 uA - enabling devices to run for years on coin cell batteries

Before Cortex-M, designers had to choose between 8-bit processors (simple but limited) or power-hungry 32-bit chips. Cortex-M gave IoT devices full 32-bit capability with microamp power consumption.

TipBluetooth Low Energy (2006): Wireless for Battery-Powered Devices

BLE transformed wireless connectivity for IoT:

  • Energy efficiency: Send a 30-byte packet once per second and last a year on a coin cell battery
  • Critical adoption moment: Support was weak until Apple incorporated BLE into iBeacon (2013)
  • Now universal: All major smartphones include BLE, making it the de facto standard for device-to-phone connectivity

The combination of Cortex-M processors and BLE radios enabled the first generation of truly practical consumer IoT devices - fitness trackers, beacons, smart home sensors - that could operate for years without battery replacement.

98.3.2 Historical Perspective: The Wireless Paradigm Shift

Wireless systems have evolved through four distinct paradigms, each bringing ~1000x more nodes:

Diagram showing evolution of wireless paradigms from telegraph to IoT

Flowchart diagram
Figure 98.4
Era Paradigm Nodes Technology Direction
1900 Station-to-Station 10^3 Wireless telegraph Point-to-point
1920s Station-to-People 10^6 AM/FM radio, TV Broadcast
Present People-to-People 10^9 Mobile phones Bidirectional
Future Everything-to-Everything 10^12 IoT Ubiquitous mesh

Each paradigm shift represents not just more devices, but a fundamental change in principles, technology, systems, and applications. IoT represents the ultimate paradigm: machines communicating with machines, requiring entirely new approaches to addressing, security, and data management.

98.4 Summary

In this chapter, you learned:

  • Three distinct eras define device evolution: Embedded (isolated), Connected (remote control), and IoT (intelligent)
  • Embedded systems are purpose-built for single functions with minimal resources
  • Connected devices add internet but lack autonomous decision-making
  • True IoT devices combine connectivity with machine learning and adaptive behavior
  • ARM Cortex-M and BLE were the breakthrough technologies that made practical IoT possible
  • Wireless paradigms have evolved from thousands to billions of nodes, with IoT targeting trillions

98.5 What’s Next?

Continue to IoT History and Paradigm Shifts to learn why established technology leaders often miss paradigm shifts and what this means for IoT today.