ARMONK, N.Y. – IBM plans to invest $3 billion to build a division dedicated to the Internet of Things.
The firm estimates that 90% of all data generated by mobile and smart devices is never analyzed. With that in mind, IBM will team up with Twitter and the Weather Co., owner of the Weather Channel, to develop cloud-based data services and tools for app developers, ABC News reports.
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The new business unit is part of IBM’s shift away from hardware toward spending billions to focus on analytics, cloud computing, mobile services and security.
IBM is currently training more than 2,000 consultants, researchers and developers to help businesses create new ways to use the vast amount of data that are now available.
The firm plans to launch an online service to help insurance companies pull out information from connected vehicles to develop new pricing and services customized to individual drivers.
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The Weather Co., on the other hand, will integrate its weather data operation into IBM Cloud to allow insurance companies to send policyholders test messages alerting them to looming hailstorms, so that vehicles could be moved before being damaged. Additionally, the service could help determine how many people were hit by a natural disaster, helping insurers to respond to claims faster.
