Watson is at the forefront of IBM’s long-term growth strategy
Previously in this series, we touched on the technologies that will dominate 2017 and the next computing cycle. Technology companies are already empowering themselves for these technologies through new offerings and acquisitions. IBM (IBM) is expected to benefit from the onset of the new computing cycle due to its dominance in the space.
IBM continued its transition toward the cloud space through investments, acquisitions, and partnerships in 2016. The company has made considerable efforts to promote Watson, its AI (artificial intelligence) and cognitive computing software. IBM’s Watson has expanded its expertise into the healthcare, financial services, regulatory compliance spaces.
Watson’s offerings cater to various industries
In November 2016, the company launched the IBM Watson IoT (Internet of Things) Consulting Solutions practice, which encompasses 1,500 experts at its headquarters in Munich and eight more of its IoT centers across Asia, Europe (EFA), and the Americas. IBM Watson’s IoT consulting practice caters to small and medium-size businesses, a space that is relatively untapped.
IBM has made its Watson IoT Platform available for various industries. IBM Watson IoT Platform offerings are available for automotive, electronics, retail, telecommunications, transportation, and insurance.
IBM is betting its future revenue growth on its Strategic Imperatives segment. IBM stated that Watson IoT clients have increased from 4,000 eight months ago to 6,000. The Strategic Imperatives segment comprises IBM’s investment in cloud, analytics, mobile, social, and security technologies. IBM does not report revenue contribution by Watson. However, its billion dollar investment in Watson shows that it will be a highlight of IBM’s focus in 2017.
The above chart by McKinsey highlights nine areas where the IoT can create value. McKinsey estimates that the IoT could have an overall potential economic impact of $3.9 trillion to $11.1 trillion in 2025.