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IBM Allocates $3 Billion To Fund Internet Of Things Unit

By - Source: IBM

IBM announced plans to invest $3 billion over the next four years in an Internet of Things (IoT) unit.  IBM is creating an open cloud-based platform to help advance IoT computing for the company’s clients and partners. IBM is leveraging past work in initiatives such as the IBM Smarter Planet program in creating programs that collect and analyze data from IoT and other sources. IBM is looking to create an open platform that will allow manufacturers to produce devices that are better optimized for the IoT.

"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, IBM Analytics. "IBM will enable clients and industry partners 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."

The company estimated that 90 percent of all data generated by connected devices is never utilized. According to the company, up to 60 percent of this data begins to lose value within milliseconds after generation. To better gain value from this data, the company plans to focus its IoT efforts on three initiatives:

  • IBM IoT Cloud Open Platform for Industries will provide an open cloud-based platform aimed at bringing IoT products to industry. IBM plans to create a cloud-based service for insurance providers that can glean actionable intelligence from connected vehicles.
  • The IBM Bluemix IoT Zone will provide IoT services as part of the IBM Bluemix platform-as-a-service (PaaS). This will help developers to develop and deploy cloud-based IoT apps by allowing them to easily integrate real-time data from IoT devices.
  • Expansion of the IBM IoT ecosystem, through partnerships with manufacturers and industry-oriented service providers like AT&T, ARM, Semtech and The Weather Company will provide integration of data and services on the IBM IoT platform.

IBM has partnered with The Weather Company through its Weather Services International (WSI) division to help businesses use real-time weather data to aid in decision support and operations functions. WSI collects data from more than 100,000 sources, providing over 2 billion forecast points, yielding up to 10 billion forecasts a day.

IBM is partnering with a broad range of clients from wide ranging industries such as transportation, with connected vehicles; municipalities, providing data from smart meters; police departments; water companies and more.

Information about IBM’s IoT initiatives can be found here.