What is the "Internet of Things", or as I call it "Physical World Connection"
When every physical object is, or can be, connected to the Internet.

From N.Y.Times AT&T wants more web-enabled devices
AT&T has created a new division within the company to help devise new consumer devices – digital cameras, devices for cars, even dog collars – which they hope will make it easy to access the Web using AT&T’s network.
Because nearly nine out of ten people already own a mobile phone, AT&T can’t grow fast enough by selling more phones. It needs to find new sources of revenue, particularly devices that use data.
More Physical World Connection discussion.
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