Skip to main content

Market Overview

GE Advances Digital Leadership with Launch of $1.2 Billion Industrial IoT Software Company


New GE-owned, independently run entity will be established to expand
company's leadership in IIoT market and better serve industrial customers

GE selling majority stake in ServiceMax

GE (NYSE:GE) today announced plans to establish a new, independent
company focused on building a comprehensive Industrial Internet of
Things (IIoT) software portfolio. The company will start with $1.2
billion in annual software revenue and an existing global industrial
customer base. The company is intended to be a GE wholly-owned,
independently run business with a new brand and identity, its own equity
structure, and its own Board of Directors. The proposed new organization
aims to bring together GE Digital's industry-leading IIoT solutions
including the Predix platform, Asset Performance Management, Historian,
Automation (HMI/SCADA), Manufacturing Execution Systems, Operations
Performance Management, and the GE Power Digital and Grid Software
Solutions businesses.

Additionally, GE announced
an agreement to sell a majority stake in ServiceMax
, a leading
provider of field service management software, to Silver Lake, a leading
private equity firm focused on technology investments. With these
actions, GE will sharpen the focus of its IIoT portfolio to position the
new business for future growth. The transaction is expected to close in
Q1 2019, subject to customary closing conditions and regulatory

"As an early leader in IIoT, GE has built a strong business with its
industrial customers thanks to deep domain knowledge and software
expertise," said GE Chairman and CEO H. Lawrence Culp, Jr. "As an
independently operated company, our digital business will be best
positioned to advance our strategy to focus on our core verticals to
deliver greater value for our customers, and generate new value for

The IIoT is a nascent market but is expected to have significant growth.
According to Gartner: "Innovations such as smart, connected products,
the industrial Internet of Things (IoT), ‘digital twins,' advanced
analytics and artificial intelligence will be key to productivity
improvement and new IT demand in this sector through 2022. The
proliferation of digital products and subsystems to enable the IoT in
downstream industries and generate revenue from smart products over
their entire life cycle will be the most promising (and complex) driver
for new IT spending growth through 2022."*

GE's independent software business moves into the market with a strong
position, building on the company's experience and success developing
solutions to drive the outcomes that matter most for asset-intensive

GE's new IIoT business would provide software for these asset intensive
industries with a focus on the power, renewables, aviation, oil and gas,
food and beverage, chemicals, consumer packaged goods and mining
industries. These industries build on GE's foundation and expertise as a
leading MES provider for nearly 20 years. With an already thriving
business in these areas, the new digital organization is positioned to
accelerate GE's ability to deliver IIoT solutions that meet the needs of
these industrial customers, addressing the most impactful aspects of the
asset lifecycle.

GE Digital CEO, Bill Ruh, has decided to depart GE to pursue other
opportunities. The company intends to conduct an internal and external
search to identify the CEO for this new independent company. Further
details on GE's new IIoT software company will be announced in Q1
2019. This plan is subject to customary regulatory approvals, including
information and consultation with employee representatives where

*Source: Forecast: Enterprise IT Spending for the Manufacturing and
Natural Resources Market, Worldwide, 2016-2022, 3Q18 Update

About GE Digital

GE Digital is reimagining how industrials build, operate and service
their assets, unlocking machine data to turn valuable insights into
powerful business outcomes. GE Digital's Predix portfolio – including
the leading Asset Performance Management and Field Service Management
applications, as well as Predix Private Cloud – helps its customers
manage the entire asset lifecycle. Underpinned by Predix, the leading
application development platform for the Industrial Internet, GE Digital
enables industrial businesses to operate faster, smarter and more
efficiently, wherever their operations require. For more information,

About GE

GE (NYSE:GE) drives the world forward by tackling its biggest
challenges. By combining world-class engineering with software and
analytics, GE helps the world work more efficiently, reliably, and
safely. For more than 125 years, GE has invented the future of industry,
and today it leads new paradigms in additive manufacturing, materials
science, and data analytics. GE people are global, diverse and
dedicated, operating with the highest integrity and passion to fulfill
GE's mission and deliver for our customers.

GE's Investor Relations website at
and our corporate blog at
and @GE_Reports on Twitter, as well as GE's Facebook page and Twitter
accounts, contain a significant amount of information about GE,
including financial and other information for investors. GE encourages
investors to visit these websites from time to time, as information is
updated and new information is posted.

View Comments and Join the Discussion!
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at