Power Over Ethernet -- allows the transmission of electricity via network cables to power lower-powered electronic devices.
How it works
A Network Switch is connected to your network with PoE capabilities.
The network switch pushes electricity down your network cable to power the device the network cable will be attached to.
The device doesn't need an electric outlet -- it gets its power from the network cable.
The device must be PoE-ready to support this network power.
Optionally, a splitter can be used at the device which will create a small electric outlet for the device to plug into. This is not recommended, just here for completeness. Buy PoE devices.
Pro-Tips
Some cheap network switches wont put out full power (15w per network connection) -- be careful what you buy
Any Cat5e network cable is fine. Don't buy something ridiculously expensive. It all works the same. You'll be dead before it's obsolete, anyway.
PoE Network switches are expensive compared to non-PoE. Get used to it and think how much you saved not having an electrician install a power outlet.
If you only have a single PoE device, an inline-PoE pump can be purchased that will power up just one network cable.
Why PoE is awesome
If the power goes out -- your PoE switch can keep all your RFID readers running.
If the power goes out -- your PoE switch can keep all your VIDEO cameras running.
And, no doubt someone says, "There's no light though!" -- so use infrared.
No electricity needed. Getting electric outlets installed is no fun. Network cabling is easy.
No one bumps the big transformer off the power outlet.