IBM To Invest $3 Billion in Internet of Things Unit
-based open platform to help clients and ecosystem partners build IoT solutions.
In its announcement, IBM noted that its Smarter Planet and Smarter Cities initiatives were based on practical IoT applications that led to a broad set of solutions that combine and analyze data from various sources.
IBM plans to use that knowledge as a jumping off point with an IoT unit that will make available an open platform that lets manufacturers design and produce connected IoT devices and systems that inform decision-making. Pat Toole will lead the unit as general manager.
“Our knowledge of the world grows with every connected sensor and device, but too often we are not acting on it, even when we know we can ensure a better result,” said Bob Picciano, Senior Vice President of IBM Analytics. “IBM will enable clients and industry partners [to] apply IoT data to build solutions based on an open platform. This is a major focus of investment for IBM because it’s a rich and broad-based opportunity where innovation matters.”
IBM Presses Into IoT
IBM has done its IoT homework. Big Blue has determined that 90 percent of all data generated by devices such as smartphones, tablets, connected vehicles and appliances is never analyzed or acted on. What’s more, as much as 60 percent of this data begins to lose value within milliseconds of its generation.
IBM is starting out with three solutions to address this challenge: IoT Cloud Open Platform for Industries; Bluemix IoT Zone, and IoT Ecosystem.
IoT Cloud Open Platform for Industries promises new analytics services that clients, partners and IBM will use to design and deliver vertical industry IoT solutions. Here’s an example: Big Blue will roll out a cloud-based service that helps insurance companies extract insight from connected vehicles. The expected result: more dynamic pricing models and customized service delivery.
Meanwhile, the Bluemix platform as a service will get new IoT services that will help developers integrate IoT data into cloud-based development and deployment of IoT apps. The idea is to inject more real-time data and embedded analytics to drive more automation and optimize mission-critical IoT processes.
Playing to IBM’s Strength
IBM also pledged to expand its IoT partner ecosystem, adding silicon and device manufacturers and industry-oriented solution providers like AT&T, ARM and Semtech, and new partner, The Weather Company. These companies will integrate their data services and solutions with IBM’s open platform.
We asked Zeus Kerravala, a principal analyst at ZK Research, for his reaction to IBM’s $3 billion IoT investment. He told us Big Blue wants to be part of the trend in a big way.
“This is an extension of things IBM is already doing. The analytics and services that tie computing resources together to meet business needs is something IBM does,” Kerravala said. “Now they are calling it Internet of Things.”
Kerravala said in some ways, IBM is rebranding some of its existing technologies. In other ways, it’s clear that the company is trying to reach deeper as connectivity begins emerging everywhere, he added.
“Any device of value that used to be dumb is getting an Internet connection which helps with tracking, performance, maintenance and in many cases in collecting data that can then be analyzed and used to improve business performance,” Kerravala said. “In some ways Internet of Things plays to IBM’s strength as a IT services company.”