IBM has been in the news for the launch of the Internet of Things headquarters in Munich. It was a $200 million project. To take the project to a new level, IBM has partnered and collaborated with several companies such as Visa, Indiegogo, French railway SNCF, Bosch and several others.
IBM is a legendary company that was popular for the servers and associated technology. With the introduction of latest technologies, the importance of IBM has gone down in recent years. To boost the value of IBM and to be a pioneer in the industry, IBM has invested in Internet of Things (IoT) to work on newer technologies. The primary focus of IoT is the Watson artificial intelligence business and IBM has plans to invest $3 billion in this project over the course of four years.
In an attempt to push the IoT project, IBM continues to make deals with numerous companies. Weather Company was acquired by IBM in 2016. The existing IBM cloud services were moved to the new platform. The Watson artificial intelligence technology was integrated into the Cisco edge routers to take one step forward in the data analytics arena. The revenues from IoT have been rewarding for IBM.
IBM has not openly disclosed the revenues generated through the IoT project. The global head of the IoT project commented that the revenues from the project contributed to about 40% of the overall revenue for IBM. The headquarters of IBM is in the US, but the IoT center was built in Munich. This was completed before the presidency of Donald Trump who pushes all the companies to invest in the USA and move out of other countries.
IBM has proclaimed itself as a supporter of Trump. The support has impacted several employees as they wanted to leave the company. Trump has promised numerous business tax cuts that could benefit IBM. In an attempt to motivate the employees, IBM has sent an internal memo claiming that the company’s association with Donald Trump will help the company to exert influence on policy making. The company alleged that exposure to insider information will help IBM to stay away from dangerous executive orders.
Visa is responsible for 60% of the financial transactions all over the world and IBM brings its Watson IoT platform to Visa through its collaboration. It is one of the biggest steps taken by IBM to monetize IoT project. IBM hopes to provide cloud services at free of cost along with tools and support for startup hardware and electronic projects on Indiegogo and Arrow. IBM has always associated itself with huge corporations in the past. Now, the new deal makes IBM technology accessible for small businesses and startups.
IBM also wants to expand the reach of its Watson IoT platform by working with giants such as Tech Mahindra, Cap Gemini, BNP Paribas Avnet, Bosch, and EEBUs. French railway SNCF is also partnering with IBM to use the Waston IoT platform to improve railway performance.