The technology multinational, IBM, has announced that it will invest $3bn over the next four years in an Internet of things (IoT) research unit, and that it is building a cloud-based open platform which companies can use to obtain and share data.
This move follows other IBM ventures in the IoT such as ‘Smarter Planet’ and ‘Smarter Cities’ initiatives that have focused on practical applications of the IoT, i.e. using big data to create new services and business opportunities.
The research unit will broadly serve three functions: analytics services for clients, a platform for developers to create IoT apps and a service aimed at integrating data services and solutions in order to expand its IoT ecosystem partners.
According to IBM, as much as 60 per cent of data loses its value almost immediately after it is created. There is a clear business opportunity in processing and providing access to real time data, since it can fundamentally enhance decision making. For example, automobiles equipped with machine-to-machine (M2M) technology enable drivers to become immediately aware of engine faults, heavy traffic or adverse weather conditions.
Indeed, one arm of the IoT research unit, the IBM IoT Ecosystem, will use The Weather Company (providing on average, 10 billion forecasts per day), to aid the secure and seamless integration of data services and solutions on IBM’s open platform.
IBM’s investment reflects their faith in the IoT’s economic potential but will also provide a platform for a vast number of companies seeking to develop IoT revenue opportunities. IBM have claimed that 90 per cent of all data generated by devices like smartphones, tablets, connected vehicles and appliances is never analysed or used. Operators have a huge opportunity to develop a similar platform that would enable revenue creation and consolidate the position of mobile technology in the broader IoT ecosystem.