Machine to machine (M2M) is direct communication between devices using any communications channel, including wired and wireless. Machine to machine communication can include industrial instrumentation, enabling a sensor or meter to communicate the information it records (such as temperature, inventory level, etc.) to application software that can use it (for example, adjusting an industrial process based on temperature or placing orders to replenish inventory). Such communication was originally accomplished by having a remote network of machines relay information back to a central hub for analysis, which would then be rerouted into a system like a personal computer. More recent machine to machine communication has changed into a system of networks that transmits data to personal appliances. The expansion of IP networks around the world has made machine to machine communication quicker and easier while using less power. These networks also allow new business opportunities for consumers and suppliers. Wired communication machines have been using signaling to exchange information since the early 20th century. Machine to machine has taken more sophisticated forms since the advent of computer networking automation and predates cellular communication. It has been utilized in applications such as telemetry, industrial, automation, and SCADA. Machine to machine devices that combined telephony and computing were first conceptualized by Theodore Paraskevakos while working on his Caller ID system in 1968, later patented in the U.S. in 1973. This system, similar but distinct from the panel call indicator of the 1920s and automatic number identification of the 1940s, which communicated telephone numbers to machines, was the predecessor to what is now caller ID, which communicates numbers to people. After several attempts and experiments, he realized that in order for the telephone to be able to read the caller's telephone number, it must possess intelligence so he developed the method in which the caller's number is transmitted to the called receiver's device.

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