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Echo connects to the Internet via your home WiFi network. It’s always on and listening for the magic word to wake it up. Once it hears that, the device gathers the voice commands that follow and sends them to a natural voice recognition service in the cloud called Alexa Voice Service, which interprets them and sends back the appropriate response. The device has an array of microphones that can pick up your voice from across the room, even over music and other environmental noise.
Amazon is adding more services to the Echo all the time and has made the Alexa cloud service available for use by third-party developers, opening it up to lots of future possibilities.

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