This announcement comes a week after Microsoft reshuffled the organization so they will focus more on Windows "smart" cloud products and services. Unfortunately, Microsoft did not reveal how much money they have spent on developing IoT to date.
Corporate Vice President of Azure Julia White said through blog post that Microsoft plans to continue developing IoT operating system (based on Windows 10), a cloud service to manage these IoT tools and analytics to gain insight or information from the IoT device.
In recent years, Microsoft has taken advantage of IoT to drive their Azure business. Last year, in Build developer conference, Microsoft made "edge computing" as one of the main themes.