IBM announced on Tuesday it will invest US$3 billion into the Internet of Things (IoT) over the next four years.
The U.S.-based tech giant estimated that as much as 90% of all data generated by devices such as smartphones, tablets, connected vehicles and appliances is never analysed or acted upon. 60% of this unanalysed data starts to lose its value within milliseconds of being generated, the company claimed.
"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, in a statement.
To address this challenge, IBM will create a new IoT division tasked with developing open, cloud-based platforms to enable clients and ecosystem partners to create new services. Its portfolio will consist of a data analytics platform, a platform-as-a-service (PaaS) solution to help clients develop IoT applications, and an ecosystem programme to ensure the data being collected by various industry partners is compatible and interoperable.
IBM’s IoT division will build on work that the company has already carried out to improve the gathering and use of data in various industry verticals, including smart cities, the automotive sector, transportation, public safety, and utilities, among others. It will be headed up Pat Toole, general manager of IBM System z – the company’s mainframe business.
IBM hopes that its work will help manufacturers optimise conn ected devices for IoT, and help corporations make better decisions based on enterprise and IoT data.
"This is a major focus of investment for IBM because it’s a rich and broad-based opportunity where innovation matters," said Picciano.
