At the Computex show in Taipei today, Microsoft said it will cooperate with Toshiba to build Windows and Azure IoT gadgets.
It also said, according to the Digitimes wire, that it will concentrate on providing IoT devices for the transportation industry in a bid to help track goods more easily.
And it showed off a home system called Crestron Pyng that is supposed to link lighting, audio, heating, locks and other services using Azure IoT services.
The announcements came as it gave more details of hardware support for Windows 10, which is set to debut at the end of July.
Toshiba, HP, Dell, Asustek and Acer will all have PCs running Windows 10 at launch.
Microsoft has pledged to have Windows 10 running on a billion devices of all kinds over the next few years.
It is offering a free upgrade to people who have Windows 7 or who are unlucky enough to have devices running Windows 8 or Windows 8.1/.