With GE establishing a new standalone software business, we examine what it means for existing and potential customers of GE Digital and for GE.
Must read: GE plans to launch independent industrial IoT company, unloads ServiceMax: Too little, too late?[1]
What we know:
- On Dec. 13, 2018, GE announced[2] the formation of a new industrial IoT (or IIoT) software business, with $1.2 billion in revenue (based on GE Digital sales).
- The new IIoT company (unofficially referred to as GE Digital 2.0 or GED2) will be given a new brand.
- GED2 will be a separate legal entity, with GE the only shareholder at this time.
- A new board will be put in place with a new CEO (GE Digital's CEO, Bill Ruh, will depart at the end of December 2018). The new company is likely to be officially established effective Q1 2019.
- GE will sell 90 percent of ServiceMax to Silver Lake for an undisclosed sum.
- GED2 will continue to act as a reseller of ServiceMax to GED2 clients.
- GE's industrial segments will now sell GED2 products (the Predix portfolio) to its customers under formal reseller agreements.
- GED2 will include the digital assets known as the Predix Platform: Asset Performance Management, Historian, GE Automation (HMI/SCADA), Manufacturing Execution Systems, Operations Performance Management, and the GE Power Digital Power Services and Grid Software Solutions businesses.
- GE's additive manufacturing business will not be part of GED2.
- Steven Martin[3], GE Digital's chief commercial officer, will act as interim CEO of GED2 from Jan. 1.
Also: Google Home app makes it easy to set up this GE smart bulb[4] CNET
What It Means
In establishing GE