Dive Brief:

• Dell Technologies will invest $1 billion into Internet of Things research and development — focusing on products, labs and partner programs — over the next three years, according to a company announcement Tuesday. Alongside its new strategy, the company unveiled a new IoT Solutions Division, which will develop and integrate IoT technology across the company ecosystem.

• Dell is bringing AI and ML capabilities to its IoT platform under a distributed computing model, responding to customer frustrations regarding a lack of centralized IoT infrastructure. Customers can make use of Dell's advisory and IoT analytics solutions to fit IoT tech to their needs.

• Dell Technologies Capital will partner with the new division and invest in promising IoT, AI and ML startups to accelerate development and deployment of advanced technologies.

Dive Insight:

Dell Technologies has become a strong player in its own right since its merger and now provides 98% of Fortune 500 companies with tech. By rounding out its IoT offerings, the company is positioning itself well to continue servicing customers transitioning to a more mobile and connected work environment.

Dell and GE announced a new partnership in September, under which Dell will become the primary tech provider for GE's IT infrastructure. The two companies have a preexisting working relationship on industrial IoT solutions, which can be used to digitally connect employees along a company's entire pipeline and facilitate daily operations and communication.

As Dell expands its IoT capabilities, the company will have to invest a lot more time and money into acquiring needed talent for the undertaking. IoT talent is among the hardest to find, as it requires knowledge across technologies like the cloud, software, Big Data and AI. With competitors like IBM upping their own IoT game hoping to establish dominance in the market, Dell has its work cut out for it competing for in-demand workers.

Harnessing the IoT can be an important move for companies looking to gather more data on internal operations and plan strategic investments. Companies with infrastructure in place to consume IoT data often report feeling well prepared for digital transformations.