Companies target industrial internet of things
Huawei is partnering with GE to develop solutions for the industrial internet of things. The two companies announced their partnership in Shanghai, where GE is launching an incubator for startups and software developers focused on connected machines.
The companies said Huawei solutions will leverage GE’s Predix, which GE calls “the world’s first industrial operating system.” Predix is a platform for building applications that connect to industrial assets, collect and analyze data, and report in real time.
Smart cities could be one of the first areas of collaboration for the two companies. GE has a suite of solutions called Current which uses wireless controls, LED and solar energy to help cities save money by generating power on site instead of paying to have power delivered by a utility.
Huawei has said that there are more than 300 smart city initiatives in China, and that each one may have different requirements. Therefore Huawei believes that partnerships with other companies are key to success in the effort to build smart cities.
Software and smart machines cut costs
For GE, the industrial internet of things is not just a market, but also a strategy to boost efficiency and save money within its own operations. The company’s chief digital officer Bill Ruh said this week that smart machines are expected to save GE half a billion dollars this year.
Technologies that save money for GE this year could generate revenue for the company next year. Ruh said GE perfects its industrial IoT solutions internally, and then translates them into products and services that can be marketed to its customers.
“We are a company that invests in broad industrial transitions, and they don’t come much bigger than the full application of data and analytics to machines and systems,” GE wrote recently in a letter to shareholders. CEO Jeffrey Immelt has stated that he wants GE to be one of world’s top ten software companies within four years.
The Predix IoT operating system is a significant part of that strategy. GE wants each of its industrial business units to use Predix to create new revenue streams. Those revenue streams will not be tied exclusively to GE industrial equipment. According to the company, customers are already using Predix to connect non-GE equipment.
Huawei’s bet on Predix is a further endorsement of the platform. It also gives the Chinese company new opportunities to work with GE’s customers, just as it gives GE more opportunities in China.
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