Consolidation in the IoT (Internet of Things) market is showing no sign of slowing down, with Microsoft purchasing Italian startup Solair. Here are the key details from an official Microsoft blog post:

Solair’s IoT customization and deployment solutions, built on Microsoft’s Azure cloud platform, are engineered to help businesses in any industry utilize IoT to run more efficiently and profitably. For example, Solair has brought the power of IoT to the Rancilio Group’s full line of espresso machines, allowing the Italian manufacturer to remotely monitor machines resulting in greater efficiency across the supply chain. Using the power of cloud-based data and analytics, Solair has helped the Rancilio Group reduce costs and increase revenue.

In Japan, Solair is using the power of IoT to transform the way factories monitor production lines. Their Smart Factory Advisor application has helped manufacturers increase production capacity and optimize energy efficiency. By enabling a factory’s machines with their IoT solution, the information and insights gathered are leading to more efficient ways of manufacturing.

It shouldn't take long for Microsoft to weave Solair's capabilities into the Azure IoT platform. Solair's software platform not only runs on Azure, but also uses Microsoft SQL Server as an underlying data store. 

While Solair seems to have some overlap with Azure IoT Suite's existing feature set, Microsoft's decision to purchase the company may be based on improving IoT developer productivity. Solair's platform provides a drag-and-drop interface for creating IoT applications, and the company says IoT apps can be completed in days, versus months. It also provides a workflow and lifecycle framework; the option of running custom code for more complex scenarios; and tools for integrating with third-party and desktop applications.

Microsoft had plenty of IoT platform vendors to choose from, with hundreds in the market today, although many focus on some aspects of the IoT stack more than others. Expect a great many more deals to come, says Constellation Research VP and principal analyst Holger Mueller.

"It is really gold rush time," Mueller says. "Vendors are trying to set up their claims and get hold of IP early."

For enterprise customers, devising an IoT strategy is rapidly becoming table stakes. To this end, customers should avoid letting themselves become dizzied by the rapid consolidation of IoT vendors, and rather focus on four key points when making a selection, Mueller says: One, their experience connecting to the things that matter to their business. Second, their track record of transferring and storing data. Third, their ability to provide the expected insights, and finally, their ability to automate processes on top of IoT data.

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