Computing and technology giant IBM has announced that it will invest between $3-4B over the next four years to establish a new Internet of Things (IoT) division. IBM’s big splash is spurred by its belief that IoT-enabled devices will form a $40B a year business by 2018.

According to IBM, the new unit will consolidate its already growing cloud, data analytics and bmobile units into one harmonized whole. The company expects this new division to be at the core of its business philosophy going forward.

“Our knowledge of the world grows with every connected sensor and device, but too often we are not acting on it, even when we know we can ensure a better result,” said Bob Picciano, Senior Vice President, IBM Analytics.

To further highlight that point IBM states that, by its own estimate, over 90% of all data generated by mobile devices, IoT enabled appliances and autos never sees any analysis. Furthermore, the company believes that within seconds 60% of this data begins to lose value.

In an effort to better mine this data, IBM will deliver on-demand tools to make this torrent of information actionable for businesses that thrive on up-to-the minute streams of information.

In the near term, IBM thinks these new tools will be valuable for companies working in the insurance industry, and regional planners looking to find solutions to infrastructure problems like those seen in major cities. To that end, IBM has already begun working with municipalities from Australia to Canada and even in Dublin, Ireland to help combat growing traffic congestion.

While big data is increasingly viewed as an analytical tool for solving the world’s big problems, it has yet to be harnessed in a way that’s brought about change on par with its potential.

Maybe IBM’s new IoT division will help eliminate this bottleneck, and provide a template for other firms that are ripe with data but short on solutions.

IBM will hold a live streaming web event to outline the vision for their IoT division on April 9 at 11am EDT.

Source: IBM