The Internet of Things (IoT) is the network of everyday objects — physical things embedded with electronics, software, sensors, and connectivity enabling data exchange.
Basically, a little networked computer is attached to a thing, allowing information exchange to and from that thing.
Be it lights, toasters, refrigerators, flower pots, watches, fans, planes, trains, automobiles, or anything else around you, a little networked computer can be combined with it to accept input (esp. object control) or to gather and generate informational output (typically object status or other sensory data).
This means computers will be permeating everything around us — ubiquitous embedded computing devices, uniquely identifiable, interconnected across the Internet.