Intel and HP Enterprise to Develop Solutions for IoT



How does collaboration benefit the two tech companies?

Intel and HP Enterprise announced their intention to develop solutions for the Internet of Things (or IoT), including devices equipped with sensors that would allow for the exchange of information without any human interaction. The two tech giants will jointly develop a standard for IoT devices and will establish global “solution labs” to deploy IoT applications for customers and “discovery labs” where both companies will test and dry run the IoT devices.

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The combination of HP Enterprise’s IoT solutions and Intel’s platform and processors could allow them to create products that collect, process, and analyze data from different devices. HP Enterprise could benefit by allowing IoT applications to act as a bridge between the public and private clouds. Moreover, the two companies can improve the installation process for the hybrid cloud by making devices interact between the two cloud modules.

Intel’s growth drivers for IoT

Intel is diversifying from its core PC chip-making business to IoT, as the PC market has fallen with the rise in demand for handheld devices. In 3Q15, Intel’s revenue from IoT device grew by 10% to $581 million. This constituted around 4% of its total revenue generated on a YoY (year-over-year) basis.

The IoT revenue was driven by the ATOM chip that was mainly designed for smartphones and tablets. Apart from this, other revenue drivers remain to be IoT modules, such as “Curie & Edison,” as well as demand for wearables. IDC estimated the IoT market to grow from $656 million in 2014 to $1.7 trillion in 2020.

The iShares U.S. Technology ETF (IYW) is a portfolio of 150 stocks, whose top four stocks are Apple (AAPL), Microsoft (MSFT), Facebook (FB), and Alphabet (GOOG). They constitute 18.0%, 11.6%, 6.7%, and 6.0%, respectively.


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