GE bets on Internet of Things with investment partnership
Planning to foster more than 30 start-ups, General Electric Co. and Frost Data Capital have partnered to found the Frost I3 Industrial Internet incubator. Frost I3 is charged with no small task: to nurture massive change in global industry and to cultivate the adoption and innovation of the Internet of Things (IoT).
Basing their venture on the needs of their shared customers, GE and Frost Data Capital will use Frost I3 to explore specific IoT ideas generated by the leadership in both companies. With a variety of small companies percolating their plans, GE will have the freedom to essentially grow IoT startups that match its needs.
In an interview on theCUBE in April, Kerry McGuire, VP of strategy for the Internet of Things business unit at ARM, described many of the most disruptive IoT products as coming “from small startups.” John Vigouroux, Managing Partner & President of Frost Data Capital, explained that “The Frost I3 initiative will give GE a partner that can produce disruptive innovation but is also finely tuned to create companies that can be easily acquired.”
The IoT has the potential to overhaul many industrial functions by enabling everything from factory equipment to finished products on the warehouse floor to communicate. However, many companies are unsure how to approach the challenges IoT presents. In June, SiliconANGLE’s Mike Wheatly analyzed a Spiceworks report that said 71 percent of IT pros believe the IoT will affect their workplace but 59 percent said they aren’t doing anything to prepare. By sourcing Frost I3 for innovation, GE and Frost Data Capital will help businesses prepare for the oncoming IoT wave. “Frost I3 and GE will provide solutions in Big Data analytics, management, and security analytics that will provide tools for IT Pros and non-pros (business users) as well,” Vigouroux said.
In addition to its role as partner in Frost I3, GE recently invested $105M in EMC/VMWare’s Pivotal and is a key member of the Industrial Internet Consortium. The industrial giant’s actions suggest its confidence in the IoT’s massive potential.
