Intel Corp. (NASDAQ:INTC) is the latest company to say it’s beginning to focus on the “Internet of Things,” announcing a new business division dedicated to finding different ways to connect everyday objects to the Internet.
Intel has created an Internet of Things Solutions Group that will be run by Doug Davis, who will report to CEO Brian Krzanich, according to a report from Reuters. Intel created the project so that it wouldn’t fall behind on an idea that could create a huge demand for new electronics and software in the same way the company lagged on making smaller chips for mobile devices.
“Krzanich is saying, ‘I want a higher level of focus on this to help us grow it and put the level of attention on it that it deserves,’” Davis told Reuters on Tuesday. “We’re pulling together a couple of pieces that are already doing well and we want to accelerate those efforts. This creates a primary focus around ‘Internet of Things.’”
Krzanich is trying to turn Intel’s strategy around in terms of mobile chips, but the company has already fallen behind in the area and has been hit hard by the drop in PC sales, something that was reflected in Intel’s third-quarter earnings report. The CEO is trying to make sure the company doesn’t make the same mistake regarding the up-and-coming Internet of Things idea and technology.
Other companies that are also interested in the technology include General Electric (NYSE:GE) and Cisco Systems (NASDAQ:CSCO). Cisco announced plans earlier this summer for what it’s referring to as the “Internet of Everything,” which it says could bring in $613 million in revenue in 2013 alone. By 2020, those earnings could reportedly reach $14.4 trillion.
General Electric, though, has come the farthest toward actually putting the technology to use. Last month, GE announced that it’s doubling the number of engineers and software developers to work on its Industrial Internet project, which puts sensors into machines and monitors their performance. The sensors give valuable data about the efficiency and profitability of large machinery like jet engines, locomotives, and wind turbines.
As for Intel, the company is trying to get on the bandwagon before it falls behind other companies the way it did with mobile chips.
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