Internet of Things is a popular concept that provides connectivity between sensors or devices and everyday objects. It enables them to communicate with each other or with higher layers by sending and receiving data. We used machine learning algorithms on top of the large sets of data, that are produced by the sensors, to create an algorithm for our client’s IoT solution. The specific data aggregation, analytics, and data clustering solved the problem and helped our client to improve their product. Implementation of the algorithm is delivered as a smart component and can be used in many of our client’s use cases.