IBM Invests $3bn To Streamline Its IoT Business

by CXOtoday News Desk    Mar 31, 2015

ibm

IBM is looking at a bigger piece of pie in the emerging Internet of Things (IoT) market, and will invest generously over the next four years to reach its goal. The company is investing $3 billion to build an ‘Internet of Things’ division that is aimed at harnessing the huge data trove collected by smartphones, tablets, connected vehicles and appliances and using it to help companies better manage their businesses. The move formalizes IBM’s existing Internet of Things efforts. IBM’s smarter-planet and smarter-cities businesses are connected to the IoT, believe experts.

IBM formalizes its focus on the Internet of Things as it faces competition from traditional tech rivals as well as companies such as General Electric, notes CNet.

According to IBM, 90% of all data generated by mobile and ’smart’ devices is never analyzed. IBM is reportedly training more than 2,000 consultants, researchers and developers to help businesses come up with new ways to use the vast amounts of data that are now available, said Glenn Finch, Big Data and Analytics Lead at IBM Global Business Services.

IBM IoT Cloud open platform will provide new analytics services that clients, partners and IBM will use to design and deliver vertical industry IoT solutions. For instance, IBM will introduce a cloud-based service that helps insurance companies extract insight from connected vehicles and ensure more dynamic pricing models.

IBM Bluemix IoT Zone will enable developers to integrate IoT data into cloud-based development and deployment of IoT apps. The company will expand the IoT ecosystem with partners such as AT&T, ARM, Semtech and The Weather Company to ensure seamless integration of data services and solutions on IBM’s open platform.

IBM has been working hard on bringing IoT closer to the enterprise for a while now. It is also reported that Continental is developing connected mobile vehicle solutions with IBM for car manufacturers around the world. Cummins too collects and transmits real-time performance data of its engines for predictive analysis with IBM IoT solutions to maintain higher operating levels and reduce downtimes.

Pratt & Whitney is using IBM IoT solutions, including predictive analytics, to more accurately and proactively monitor the health of more than 4,000 commercial engines. IBM is also engaged in a partnership with the University of South Carolina to produce more insights on predictive maintenance, combining deep industry expertise from the university’s Condition-based Maintenance Research Center with predictive analytics software and skills from IBM. A number of other big names in the industry are also using IBM’s IoT and predictive maintenance and quality solutions to improve the performance and reliability of its appliances.

IBM also plans to launch an online service that helps insurance companies extract insight from connected vehicles, to create new pricing and services customized to individual drivers.