IBM has announced the formation of a new Internet of Things (IoT) business unit and said it will invest $3 billion in it over the next four years. Its services will be based remotely in the cloud, and offer companies to make use of the new and multiplying sources of data such as building sensors, smartphones and home appliances to enhance their own products.
The company has also made a partnership with weather forecast provider The Weather Company, to help industries operationalize their understanding of the impact of weather on business outcomes and take action systematically to optimize those parts of their business.
In August 2014, IBM had acquired security software provider company, CrossIdeas for an undisclosed amount, in order to strengthen security in Its Cloud Computing Offerings. Also, in the same year, the company made a $3 billion commitment to chip research, especially with a focus on cloud computing and big data.
IBM is targeting $40 billion in annual revenue from the cloud, big data, security and other growth areas by 2018, which should be about 45% of its total revenue at that time, based on analysts’ growth estimates.
The other firms also showed interest in IoT business. For instance, Intel created an IoT business in 2013 and Cisco funded an IoT-specific accelerator program.