IBM is planning to invest $3 billion to develop a new internet of things (IoT) unit over the next four years. According to the company, the services will be based remotely in the cloud, and will offer ways to enterprises to make use of the new and multiplying sources of data such as building sensors, smartphones and home appliances to enhance their products. The company has already partnered with a unit of US-based The Weather Company for moving the latter?s weather data services onto IBM?s cloud, so that customers can use the data in tandem with IBM’s analytics tools.
The company is focusing on the cloud as a part of its strategy to gradually shift away from its traditional hardware and consulting business. The company is targeting $40 billion in annual revenue from the cloud, big data, security and other growth areas by 2018.