International Business Machines Corp. (IBM) To Invest $5 Billion In Internet Of Things; Lures Away Weather Company From, Inc. (AMZN)

International Business Machines Corp. (NYSE:IBM) announced that is underway to installing and developing Internet of things systems worldwide, a project that will cost the tech giant $3 billion. More than 2,000 IBM developers and researchers are expected to work on the project.

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Internet of things is a scenario where all the devices like refrigerator, cooking appliances, TV, etc. are connected and do not require machine to machine or even human to machine interaction to function. It is a development in Artificial Intelligence (AI), which will automate the functioning of machines without requiring input.

IBM chief storyteller, Stephen Hamm, stated that the move is not for hype but is rather to accomplish something real. He states that IBM has conducted thousands of Smart Planet engagements, with clients already, and this is just the latest one to broaden IBM’s reach.

Along with the big investment in Internet of Things, International Business Machines Corp. (NYSE:IBM) has also announced its partnership with The Weather Company. Joel Cawley, the Vice President of IBM’s Analytics division, stated that IBM and the Weather Company will be making a global partnership to help businesses provide real-time weather insight.

IBM and the Weather Company aim to jointly develop a new real-time insight services for specific industries including insurance, retail, logistics and energy.

The move will signal the luring away of the Weather Company from Amazon Web Services (AWS) according to Matt Rosoff, a business insider. Earlier in 2013, Jeff Barr had touted the relationship between AWS and the Weather Company, so the current move shows that IBM has lured the Weather Company from AWS.

IBM has been on a partnership spree for the past few years. For example, it forged an alliance with Twitter Inc (NYSE:TWTR) last year. Cawley had written about the integration of Twitter data into Watson Analytics to bring predictive capabilities to businesses. He also mentioned that Twitter and IBM would launch a beta program to allow the users build their applications.

David Barry

David Barry

Barry is a senior journalist at Us Markets Daily. He reports, shoots and edits many of his own stories by himself.