Microsoft internet of things - what is it?

Saw on an ad MS is thinking about internet of things.

http://www.microsoft.com/windowsembedded/en-us/internet-of-things.aspx?enav=http://download.microsoft.com/download/E/1/F/E1FFDADF-C0FF-4E72-A834-B173A079F393/Microsoft_Internet_of_Things_White_Paper.pdf?CampaignID=media_CNN_EDU2_300x250#whitepaper

They don't seem to provide any hardware (nodes) that connect to anything so how do they go internet of things? Anyone with experience?