Some low-power sensors are not enough anymore and more processing is needed to analyze data before information is transmitted. Applications need to be written for sensors to handle complex data patterns and to determine where the information needs to be sent.
"The larger your network is getting, the more difficult it is to get plain data out," Kramp said.
IBM is also working with the Internet of Things-Architecture consortium to define a standard around data transfer protocols and device interconnects. The development effort is partly funded by the European Union, with consortium partners including Siemens, NEC, Hitachi, Alcatel-Lucent and others.