There are two types of chips key to the Always On world.

These are sensor chips and RFID chips.

Both contain tiny radios. The two can also be combined.

A sensor chip, as its name implies, tests specific conditions, and is reporting back with data on those conditions. A motion sensor is an example. A heart monitor is an example.

An RFID chip merely identifies the item it’s on. The chips that will go onto passports will be RFID chips, and RFID identification is at the heart of efforts by retailers by Wal-Mart, as well as service providers like Grantex.

I’ve also written, recently, about applications that combine RFID and sensor ships. Bulldog Technologies is rolling out a line of these chips that not only identify containers in transit, but monitor their condition and shippers know the contents are safe.

Always On applications will use all these types of chips as clients on WiFi or cellular networks, with applications located on gateways that run at low power, with battery back-up, and have constant connections to the Internet.

So here are the parts of an Always-On solution:

• Sensor or RFID chips as clients pumping data.
• WiFi or cellular networks that transfer data.
• A robust, scalable low power server that can run applications for thae wireless network, using data from sensor or RFID chips.
• Software to provide the service and user interface.

Transforming this from an industrial into a personal mass market is the task of the Always On industry.