Microsoft (MSFT) & AT&T Join Forces to Boost IoT Deployment

Microsoft MSFT and AT&T T recently expanded partnership with focus on integration of secure cloud computing and network technology in a bid to enhance IoT networking.

The companies aim to aid enterprises to make the most from simplification of IoT networking.  Users will be able to seamlessly connect machines and equipment to the cloud with highly secure network connectivity.

Microsoft and AT&T have teamed up to offer an integrated IoT solution with Azure Sphere. The new “AT&T powered guardian device,” in integration with Azure Sphere will aid enterprises to accelerate business processes via massive IoT deployments at scale.

The latest solution leverages Azure IoT services and Azure Sphere’s IoT security expertise with multi-layered security of AT&T’s core network.

Notably, public Internet and Wi-Fi sources do not necessarily meet high security standards. This is the reason why the new easy-to-install guardian device, which connects machines and equipment to the cloud without any requirement for public Internet, is well poised to gain adoption.

The new cost-efficient comprehensive solution is aimed at providing fast and secure device activation, enabling enterprises to effortlessly connect existing equipment to Azure IoT Central and the cloud.

The collaboration of expertise in connectivity and multi cloud domain, aimed at offering innovative digital services and solutions, is a positive.

Markedly, coronavirus crisis-triggered demand for IoT solutions, on momentum in data center virtualization, cloud computing and mobile traffic packet, calls for simplification of complex IT infrastructure management processes.

With the latest solution, enterprises will be able to ensure seamless connection of smart devices and smart grid in a secure infrastructure. This, in turn, will accelerate digitization and reduce time to market with enhanced production facilities and simplified supply chain.

These innovative initiatives are expected to instill investor optimism in the stock, which currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Notably, shares of the company have returned 31.5% in the year-to-date period compared with the industry’s rally of 30%.

Focus on IoT Security Holds Promise

Microsoft has been making concerted efforts to democratize the benefits of IoT. The company recently acquired CyberX acquisition in this regard. The buyout is in sync with its goal of simplifying IoT and making securing IoT devices a seamless task.

The tech giant is also leveraging the capabilities of CyberX across its broader portfolio of IoT security offerings to enhance threat protection, among others.

The latest deal with AT&T is set to fortify Azure IoT security capabilities that is expected to aid the company acquire new customers looking to secure IoT network infrastructure, while doing away with dependence on not necessarily secured public Internet sources.

Microsoft is increasingly focusing on security of IoT devices with an aim to aid industrial organizations accelerate asset operations in a secured infrastructure and bolster business outcomes.

Markedly, the company already offers multi-layer IoT security and IoT security monitoring in Azure to aid customers accelerate production while securely configuring IoT devices.

In April 2018, the company announced investment of “$5 billion in IoT and the intelligent edge over the next four years.”

Notably, per MarketsandMarkets data, IoT security market is envisioned to hit $36.6 billion by 2025, from $12.5 billion in 2020, at a CAGR of 23.9% during 2020-2025. The projection favors Microsoft’s prospects over the longer haul.

Moreover, the company stands to gain from strengthening Azure Sphere, Azure IoT Edge, Azure IoT Central, and other solutions with core IoT security capabilities.

Consequently, enhanced Azure’s solutions are expected to aid Microsoft in improving its competitive position against peers in cloud computing including Amazon AMZN, Alphabet GOOGL and International Business Machines Corporation.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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