Microsoft will invest $5 billion in the Internet of Things arena over the next four years

Microsoft announced on Wednesday an investment of US$5 billion in the Internet of Things over the next four years. The company aims to give every customer the ability to transform their businesses, and the world at large, with connected solutions.

It’s well understood that IoT solutions can create operational efficiencies, but Microsoft is aware that the true impact extends well beyond that into daily lives. Customers are delivering electricity to schools in Africa, creating better patient outcomes with predictive care, improving worker safety on job sites and driver safety on Alaskan roadways.

Microsoft has invested in IoT before the term was coined, when enterprises had these endpoints in their factories, buildings and other devices that were totally “dark.” The company is planning to dedicate even more resources to research and innovation in IoT and what is evolving to be the new intelligent edge.

The Redmond, Washington-based company is seeing the kind of increased adoption and exponential growth that analysts have been forecasting for years, and is just getting started. A.T. Kearney predicts IoT will lead to a $1.9 trillion productivity increase and $177 billion in reduced costs by 2020. This effect will be pervasive, from connected homes and cars to manufacturers to smart cities and utilities—and everything in between.

This increased investment will support continued innovation in our technology platform, as well as supporting programs. We will continue research and development in key areas, including securing IoT, creating development tools and intelligent services for IoT and the edge, and investments to grow partner ecosystem. Customers and partners can expect new products and services, offerings, resources and programs.

With its IoT platform spanning cloud, OS and devices, Microsoft is ideally positioned to simplify the IoT journey so any customer—regardless of size, technical expertise, budget, industry or other factors—can create trusted, connected solutions that improve business and customer experiences, as well as the daily lives of people all over the world.

The latest investment will ensure that Microsoft will continue to meet customers’ needs both now and in the future.

Microsoft’s IoT offerings include what businesses need to get started, ranging from operating systems for devices, cloud services to control and secure them, advanced analytics to gain insights, and business applications to enable intelligent action. The company has witnessed great traction with customers and partners who continue to come up with new ideas and execute them on its platform.

Companies like Steelcase, Kohler, Chevron, United Technologies and Johnson Controls are innovating with Microsoft’s IoT platform, launching new products, solutions and services that transform their business.

Johnson Controls has transformed the humble thermostat into a smart device that can monitor a range of conditions to optimize building temperatures automatically.

Schneider Electric has built a solution to harness solar energy in Nigeria and using our IoT platform to do maintenance remotely on the panels, quite literally to keep the lights on. Kohler has created a new line of intelligent kitchen and bath fixtures that are not only luxurious to use, but more economical as well.

The Alaska Department of Transportation is working with Colorado-based Fathym to build smart roadways that monitor weather conditions and can alert drivers and state officials about treacherous conditions.

These stories keep rolling in. With each new implementation, Microsoft is getting a look into how both customers and partners overcome the specific challenges of building an IoT solution that harnesses massive amounts of data. Whether they’re building products that transform the home, office or factory floor, one thing remains clear: IoT is a collaborative, multi-disciplinary effort that spans cloud development, machine learning, AI, security and privacy.

Microsoft is committed to helping customers bring their vision to life across every industry. This announcement is big for the future of IoT and the intelligent edge. It positions Microsoft to support customers as they develop new and increasingly sophisticated IoT solutions, which few could have imagined just a few years ago.


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