Microsoft, maybe better than any company on earth, understands the power of keeping things within their system. The operating systems themselves might not be the end game, If they are able to get enough devices using their Azure cloud computing system then they might be able to create some significant lock-in. Oh, and if you are wondering why a company like Microsoft would by a 23-year-old tech company rather than just developing the product internally, you should know that the company has around 6.2 billion devices already running its system. That kind of market traction is especially valuable seeing as how some other big competitors, like Intel and Alibaba, are already pushing hard into the space. Lest you think that Microsoft’s $5 billion dollars is enough to secure itself as the most well-funded buyer of IoT related technology remember that Alibaba’s IPO was where SoftBank got its capital to invest in rivals like ARM, which were eventually sold to their $100 billion Vision Fund.
The race for market share in the growing IoT space is on. The stakes are high, the investments are big and the implications for how it will change our economy and our daily lives is yet to be fully understood.