The document discusses challenges facing cities like urbanization, aging populations, and climate change, and how a "smart city" approach using real-time data from sensors could help address these issues in a more cost effective way. It describes the "real world internet" concept of connecting physical objects to the digital world using RFID and sensors. Key challenges of this approach are handling large and heterogeneous data streams while ensuring privacy, security, and interoperability. The document advocates using semantic web and linked data techniques to annotate and integrate real-world sensor data.