Microsoft to invest £3.5bn in IoT over next four years

Microsoft has announced to invest £3.5bn in the Internet of Things over the next four years to give its customers the ability to transform their businesses, and the world at large, with connected solutions.

Iot solutions can optimise efficiency throughout labor, operations and logistics. - image courtesy of Depositphotos.
Iot solutions can optimise efficiency throughout labor, operations and logistics – image courtesy of Depositphotos.

This commitment is reportedly a major increase for Microsoft, which had spent $1.5bn to date on IoT initiatives, according to executive vice president Jason Zander.

The money will be used primarily for research, development, and partner enablement, and according to Microsoft, it’s a logical move, considering that IoT applications are a major driver of cloud computing.

The elastic capacity, high uptime, and geographic distribution provided by cloud platforms like Microsoft Azure is a clear fit for companies looking to deploy and manage fleets of connected devices.

Microsoft also operates a series of managed services designed to simplify deploying and operating IoT systems at scale.

This decision also fits reportedly into Microsoft’s existing investments in Azure Stack, a combined system of software and approved partner hardware that lets customers run what is essentially a private instance of the Azure platform.

The tech titan also has a long history of working with embedded devices, going back to the release of Windows Embedded.

Microsoft is competing closely against other cloud providers in this space, like Amazon Web Services, which offers its own suite of IoT capabilities.

Microsoft’s strong existing customer base among manufacturing companies and other large enterprises could give it an edge in the embedded device realm.

Get insights like this delivered straight to your inbox

5 Digital Briefings | 5 Front-of-Mind Topics | 5 Days a Week

  • Monday: Manufacturing Innovation
  • Tuesday: Manufacturing Leadership
  • Wednesday: Digital Transformation
  • Thursday: Industrial Automation
  • Friday: Industrial Internet

Sign up for free here.