Power Over Ethernet.
Power is sent over the ethernet cable so the device you attach not only communicates, but is also powered by that connection. This is REAL convenient for a lot of devices.
One nice use case, if PoE is used for setting up security camera. You just run the PoE line from your video recording center to the camera. You don't then have to try to locate power outlets at each camera to plug them into. It's all over the ethernet line. The second benefit is that if you put the video recorder and PoE hub/switch on a UPS, the cameras keep recording if the power is cut to the place being recorded. The bad buys think they've killed the cameras by killing the power, but they haven't (make sure the recording gear is hidden or well locked).