G.E. Plans App Store for Gears of Industry
The investment of $500 million annually signals the importance of the so-called Internet of Things to the future of manufacturing.
G.E. expects revenue of $6 billion from software in 2015, a 50 percent increase in one year. Much of this is from a pattern-finding system called Predix. G.E. calls its new service the Predix Cloud, and hopes it will be used by both customers and competitors, along with independent software developers. “We can take sensor data from anybody, though it’s optimized for our own products,” Mr. Ruh said.
[Competitive solutions from IBM, Microsoft, and Google] raises the stakes for G.E. “It’s a whole new competition for them,” said Yefim Natis, a senior analyst with Gartner. “To run businesses in a modern way you have to be analytic and predictive.”
G.E. is running the Predix Cloud on a combination of G.E. computers, the vast computing resources of Amazon Web Services, and a few [local] providers, like China Telecom.