New unit will be led by former IBM SVP Pat Toole.
IBM will invest $3bn to create a new ‘Internet of Things’ business unit over the next four years, this will also include the building of a cloud-based open platform to help companies build IoT solutions.
According to IBM, the service will be a cloud-based open platform which will help the company’s clients and ecosystem partners to create sensors, smartphones and home appliances.
The company highlighted that nearly 90% of the data generated by smart devices is not analysed and more than 60% of the data loses value, if not analysed at the right time.
To address the issue, IBM will be offering the IBM IoT Cloud Open Platform for Industries, which will provide analytics services to help its partners create IoT solutions.
IBM will also be offering IBM Bluemix IoT Zone which will allow developers to integrate IoT data into cloud-based development and deploy IoT apps.
The company will also offer IBM IoT Ecosystem, which is an expansion of its existing ecosystem, which will facilitate secure integration of data services and solutions on the company’s open platform.
As part of its first major partnership, the Weather Company will transfer its weather data services onto IBM’s cloud, which will enable customers to use the data along with IBM’s analytics tools.
IBM is planning to combine live weather forecasting with business data to allow companies to adapt to consumer buying pattern connected to weather.
IBM Analytics SVP Bob Picciano said: "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.
"IBM will enable clients and industry partners apply IoT data to build solutions based on an open platform. This is a major focus of investment for IBM because it’s a rich and broad-based opportunity where innovation matters."