Microsoft Corporation (NASDAQ:MSFT) is investing in Internet of Things (IoT) devices as the company seeks to cash in on one of the hottest segments of tech.
The tech giant announced that it will be pledging $5 billion on IoT devices over the next four years, according to a blog post from Corporate Vice President of Azure Julia White. She didn’t give away too much about where and how the $5 billion will be invested or what kinds of products consumers can expect from it.
The Microsoft blog post did read that the company’s IoT platform includes a variety of its segments, including its cloud, OS and devices. Additionally, this $5 billion investment will help businesses of all sizes and levels of technical prowess to developed connected devices and programs.
“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,” White writes. “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.”
The Microsoft exec adds that A.T. Kearney predicts that the IoT industry will yield 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,” she adds.
MSFT stock gained more than 2% on Wednesday.