IBM has announced plans to create a dedicated business unit for Internet of Things (IoT), and will fund it to the tune of $3 billion over the next four years.

Big Blue is a keen adherent of the idea that connected devices (be they sensors, cars or fridges) will be able to provide real-time data that makes everyone’s lives that much easier. Its master plan calls for the development and installation of IoT systems worldwide, and to that end its dedicating more than 2,000 consultants, developers and researchers to achieving it.

“For IBM, this isn’t about hype. It’s about real accomplishments and real opportunities,” wrote IBM’s Stephen Hamm in a blog post. “We have completed thousands of Smarter Planet engagements with clients already, everything from smart grids to smart urban command centers to smart water management. and, today, we’re announcing a new business unit to broaden our reach.”

The move basically cements IBM’s position as one of the “big three” IoT players. The company’s smarter cities and smarter planet initiatives are already deeply tied into the Industrial Internet segment – a market that Wikibon predicts will be worth some $1.7 trillion by 2020 – and so it’s easy to see why Big Blue is happy to commit so much cash to the effort.

The formation of its IoT business unit is a standard procedure for IBM, which typically targets an area it perceives to be prime for high value growth, chucks in at least a billion to get the ball rolling, then throws in its unrivalled expertise. It follows a similar pattern to what Big Blue has done in the past with its analytics, cloud and e-commerce businesses.

Nevertheless, IBM faces some tough competition in its assault on the IoT. It’s an area that almost every tech vendor is targeting, including its arch-rival Cisco Systems Ltd. and also General Electric Corp., which first coined the “Industrial Internet” phrase and has launched its own IoT platform called Predix.

In addition to the new IoT unit, IBM has also struck up a partnership with The Weather Company’s business-to-business division, which will see it deliver micro weather forecasts using sensors from a mix of aircraft, buildings, drones and smartphones.

As part of the deal, The Weather Company plans to shift its data services from Amazon Web Services to IBM’s cloud platform, having previously been one of AWS’s reference customers.

“IBM and The Weather Company are forging a global partnership to bring real-time weather insights to businesses so they can make better decisions,” IBM Vice President of Analytics Joel Cawley wrote in a blog post. “We’re combining IBM’s industry-leading big data and analytics capabilities with The Weather Company’s scientific expertise and cloud-based weather data distribution system. The two companies will jointly develop new real-time insights services for specific industries, including retail, insurance, energy, utilities and logistics.”

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