GE announces plans to establish new software company focusing on IIoT
The new, independent firm will combine GE Digital’s IIoT solutions and GE Power Digital and Grid Software Solutions businesses
GE announced plans to establish a new, independent company focused on building an industrial internet of things (IIoT) software portfolio.
GE said that the new company — which does not yet have a name — will start with $1.2 billion in annual software revenue and an existing global industrial customer base. GE added that it will be a wholly-owned, independently run business with a new brand and identity, its own equity structure, and its own board of directors.
The proposed new organization will offer solutions that combine GE Digital’s current IIoT solutions including its Predix platform, asset performance management, Historian data management solution, automation for industrial control, manufacturing execution systems, operations performance management, and the GE Power Digital and Grid Software Solutions businesses.
As part of the announcement, GE said it will also sell its majority stake in field service management software company ServiceMax to private equity firm Silver Lake, for an undisclosed amount. That transaction is expected to close in the first quarter of 2019.
“As an early leader in IIoT, GE has built a strong business with its industrial customers thanks to deep domain knowledge and software expertise,” said GE Chairman and CEO Lawrence Culp, in a statement. “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.”
GE said its new IIoT software business will support “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 July, GE Digital announced plans to integrate its Predix portfolio with Microsoft Azure’s cloud capabilities and standardize its Predix solutions on Microsoft Azure. At the time, GE and Microsoft said they would also work together under the terms of an expanded partnership on the development, marketing, and sales of industrial IoT solutions “across verticals”, and seek to bring together operational technology (OT) and information technology (IT) to eliminate hurdles in digital transformation projects. GE said the agreement with Microsoft will drive sales of the Predix platform.
GE Digital’s Predix development platform is used by companies including BP, Exelon, Schindler and Maersk, among others.