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IBM To Invest $3 Billion In The Internet Of Things

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International Business Machines Corp. (NYSE: IBM) announced Tuesday that it will invest $3 billion in a new Internet of Things (IoT) unit over the next four years. It will be led by Pat Toole.

While this may be considered a bold investment, the company already counts with many of the elements it needs to enter this competitive and increasingly crowded segment.

According to the tech giant, the services will be based remotely in the cloud. An Associated Press article explains that “IBM estimates that 90 percent of all data generated by mobile and ‘smart’ devices is never analyzed. The Armonk, New York, company hopes to change this by teaming up with companies like Twitter and the Weather Co., the owner of the Weather Channel, and developing cloud-based data services and tools for app developers.”

Glenn Finch, Big Data and Analytics Lead at IBM Global Business Services, added that IBM is training more than 2,000 consultants, researchers and developers to help businesses come up with new ways to give use to the increasing amounts of data available.

The company said that, for the first major partnership, a unit of the Weather Co. will migrate its weather data services onto IBM’s cloud. This will allow customers to combine the data with IBM’s analytics tools.

Management also assured it is working with other large companies like Continental AG (ADR) (OTC: CTTAY) and Pratt & Whitney Canada International Inc. to assist them utilize data in their processes.

As stated in a re/code article, “the company is targeting $40 billion in annual revenue from the cloud, big data, security and other growth areas by 2018, which should be about 45 percent of its total revenue at that time, based on analysts’ growth estimates.”

Posted-In: Glenn Finch Pat Toole Pratt & Whitney twitter Weather Channel Weather Co.News Tech

 

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