GE to launch standalone industrial IoT company
The move comes as part of a continuing reorganization, this time under the company’s newly appointed CEO – the second in about the space of a year – H. Lawrence Culp Jr. The new company will combine GE’s software solutions that include products like GE Digital’s Asset Performance Management, as well as the GE Power Digital and Grid Software Solutions business units.
According to the company, the new business will “provide software for asset-intensive industries with a focus on the power, renewables, aviation, oil and gas, food and beverage, chemicals, consumer packaged goods, and mining industries.” In addition, plans call for it to be “a GE wholly-owned, independently run business with a new brand and identity, its own equity structure, and its own board of directors.”
The new company’s independent structure, says GE, will enable additional outside investment and give employees an opportunity to acquire shares and benefit directly. The new business will start with $1.2 billion in annual software revenue and an existing global customer base, says the company.
“As an early leader in IIoT, GE has built a strong business with its industrial customers thanks to deep domain knowledge and software expertise,” says GE Chairman and CEO H. Lawrence Culp Jr. “As an independently operated company, our digital business will be best positioned to advance our strategy to focus on our core verticals to deliver greater value for our customers, and generate new value for shareholders.”
The worldwide IIoT market has been estimated to potentially add $14.2 trillion to the global economy by 2030. General Electric has invested heavily in its GE Digital software business, with prior CEO Jeff Immelt stating in 2015 that the goal was to become a “top 10 software company” by 2020.
Predix Platform – launched in 2013 – is GE Digital’s proprietary platform for developing industrial IoT applications. Further details on GE’s new IIoT software company will be announced in Q1 2019.
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