The answers above are all correct, but it might come across more plainly if you understand general UNIX command line usage. It is very common to want a command to work on multiple files. E.g.
ls -l *.c
The command line shell (bash et al) turns this into:
ls -l a.c b.c c.c ...
in other words, ls never see ‘*.c’ unless the pattern doesn’t match. Try this at a command prompt (not perl):
echo *
you’ll notice that you do not get an *.
So, if the shell is handing you a bunch of file names, and you’d like to go through each one’s data in turn, perl’s <> operator gives you a nice way of doing that…it puts the next line of the next file (or stdin if no files are named) into $_ (the default scalar).
Here is a poor man’s grep:
while(<>) {
print if m/pattern/;
}
Running this script:
./t.pl *
would print out all of the lines of all of the files that match the given pattern.
cat /etc/passwd | ./t.pl
would use cat to generate some lines of text that would then be checked for the pattern by the loop in perl.
So you see, while(<>) gets you a very standard UNIX command line behavior…process all of the files I give you, or process the thing I piped to you.