Velosa said Microsoft already had IoT experience through its embedded business, "channel-class" partners and ISVs.
"But this ecosystem will need to expand to OEMs, semiconductor companies, developers, makers and other IoT players," he said.
"Microsoft begins the Azure ISS preview with three main SI partners -- CGI, Cognizant and Infosys -- but is rapidly growing from its current base of 77 partners.
He said the current Microsoft Windows Embedded Business management team had established IoT leadership inside Microsoft and appeared to have Nadella as a champion.
"By placing ISS under the Azure umbrella, Microsoft has started to align incentives for its global sales force to sell ISS."
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