IoT software is needed for IoT devices to function properly. It enables the collection and communication of data from sensors and allows that data to be automated and controlled. Some key benefits of IoT software include helping consume and collect big data, enabling real-time access to device data, and providing interfaces to automate smart devices. Commonly used IoT software platforms discussed include SAP, New Relic, Wolfram, Pega 7, and Innovation Suite, which offer features like data management, monitoring, analytics, and industrial connectivity.