Huawei and GE are working together to build smart machines (GE)

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General Electric (GE) is partnering with Chinese networking and telecommunications provider Huawei Technologies to develop industrial IoT solutions to enhance productivity, reported BBC.

The partnership is part of GE’s initiative to boost its industrial IoT business in China and will give Huawei access to GE’s Predix platform, which can collect and analyze data from connected industrial machines like turbines and locomotives.

China’s massive manufacturing sector employs around 100 million people, but IoT solutions can help mitigate growing labor costs for industrial companies in China that face rising wages. This creates a huge opportunity for IoT solutions providers in China. GE estimated that the Chinese market for IoT solutions will grow to $166 billion by 2020. The Huawei partnership should help GE grow its presence in China to increase its share of the IoT market there.

In addition to the partnership, GE announced that it will be opening a software incubator in Shanghai with $11 million in funding to encourage developers to create new applications on its Predix platform, reported USA Today. GE said that it made $5 billion in software revenues in 2015, and is targeting $15 billion in software revenues in 2020. GE intends the Predix platform to be the main driver of that growth.

GE is investing $500 million annually in software to for its connected industrial machines. So far, GE has saved $500 million by connecting their machines and expect that savings to reach $1 billion by 2020, according to GE’s Chief Digital Officer Bill Ruh.

Manufacturing has become one of the leading sectors in IoT adoption, as manufacturers can drastically improve their productivity and cut labor costs with automation solutions. Recently Ford became one of the first manufacturers to adopt human and robot collaboration in its factory in Cologne, while Foxconn announced in early June that it will replace 60,000 workers in one of its plants with robots.  

The IoT Revolution is picking up speed and when it does, it will change how we live, work, travel, entertain, and more.

From connected homes and connected cars to smart buildings and transportation, every aspect of our lives will be affected by the increasing ability of consumers, businesses, and governments to connect to and control everything around them.

Imagine “smart mirrors” that allow you to digitally try on clothes. Assembly line sensors that can detect even the smallest decrease in efficiency and determine when crucial equipment needs to be repaired or replaced. GPS-guided agricultural equipment that can plant, fertilize, and harvest crops. Fitness trackers that allow users to transmit data to their doctors.

It’s not science fiction. This “next Industrial Revolution” is happening as we speak. It’s so big that it could mean new revenue streams for your company and new opportunities for you. The only question is: Are you fully up to speed on the IoT?

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• IoT devices connected to the Internet will more than triple by 2020, from 10 billion to 34 billion. IoT devices will account for 24 billion, while traditional computing devices (e.g. smartphones, tablets, smartwatches, etc.) will comprise 10 billion.

• Nearly $6 trillion will be spent on IoT solutions over the next five years.

• Businesses will be the top adopter of IoT solutions because they will use IoT to 1) lower operating costs; 2) increase productivity; and 3) expand to new markets or develop new product offerings.

• Governments will be the second-largest adopters, while consumers will be the group least transformed by the IoT.


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