Microsoft commits $5 billion in IoT over the next four years

Microsoft is set to invest approximately $5 billion in the Internet of Things (IoT) over the next four years.

According to a blog post on the Microsoft Website, the tech giant said that it is investing in IoT because it wants to give all its customers “the ability to transform its businesses and the world at large, with connected solutions.”

The company says it has been invested in IoT ‘long before the term was coined’ and that through its pledge will be able to “dedicate even more resources to research and innovation in IoT and what is ultimately evolving to be the new intelligent edge.”

“It’s well understood that IoT solutions can create operational efficiencies, but we know the true impact extends well beyond that into our daily lives. Our 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,” read the blog post.

The post also read, “We’ve been invested in IoT before the term was coined, when enterprises had these endpoints in their factories, buildings and other devices that were totally “dark.” Today, we’re planning to dedicate even more resources to research and innovation in IoT and what is ultimately evolving to be the new intelligent edge.”

Microsoft IoT platform will span across cloud, OS and devices, and will  uniquely be 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 investment we’re announcing today will ensure we continue to meet all our customers’ needs both now and in the future.

Microsoft move comes at a time when 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 Microsoft says will support continued innovation in technology platform, as well as supporting programs. The company 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 our partner ecosystem.

Microsoft’s IoT offerings today 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. We’ve seen great traction with customers and partners who continue to come up with new ideas and execute them on our platform.