This paper is a review of the fascinating development of sensors and the communication of sensor data. A brief historical introduction is given, followed by a discussion on architectures for sensor networks. Further, realistic specifications on sensor devices suitable for ambient intelligence and ubiquitous computing are given. Based on these specifications, the status and current frontline development are discussed. In total, it is shown that future technology for ambient intelligence based on sensor and actuator devices using standardized Internet communication is within the range of possibilities within five years.