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Why General Electric is launching the first cloud for industrial data

Its new cloud system will allow critical industries to make better use of the data available, GE representatives say.

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Thibault Camus/AP/File
The General Electric logo at a plant in Belfort, eastern France, June 24, 2014.

General Electric says that it plans to take cloud computing to a whole new level. 聽

Big data centers, powered by tech giants such as Amazon and IBM, already store everything from music to photos to your employee鈥檚 backed up quarterly reports. But now GE says that the industrial sector聽needs its own designated cloud to hold, clean, and analyze the plethora of data it鈥檚 producing each year. That鈥檚 why the company intends to launch the first ever cloud service specifically designed for industrial data and analytics. The new cloud will allow the companies involved in critical infrastructure and services to聽make better use of the data available, company representatives say.

鈥淭he data we鈥檙e storing is very different from a Facebook picture, which is pretty well defined,鈥 Harel Kodesh, vice president and general manager for GE鈥檚 Predix software platform at GE Software, told . 鈥淪ome of the sensors on machines may not be working properly and their data is dirty. It needs to be cleaned, normalized, compressed and ingested in a secure and efficient manner.鈥

鈥淭he nature of the devices we鈥檙e dealing with is very different from tablets or smartphones,鈥 he added. 鈥淭hey are often considered part of the critical infrastructure.鈥

Using the GE cloud, company representatives say that big industries that rely on heavy equipment,聽such as airlines, hospitals, and oil companies, will be able to capture and analyze big data from a variety of sources, giving them insights into the performance of their equipment and the external factors affecting it.

App developers will also be granted access to some of the data, a move that will allow them to design apps that manufacturers can purchase directly for their work.

鈥淭he move highlights how important the so-called聽, a term for matching sensors with cloud-computing systems, has become for some of the world鈥檚 biggest companies,鈥 wrote Quentin Hardy for the .

GE is expected to rake in around $6 billion from software this year, much of which comes from its software Predix, which the company used to build the new cloud.聽The new industrial cloud will be called the 鈥淧redix Cloud,鈥 after the software.

But GE might have some competition, as companies such as IBM and Microsoft the industrial sector聽with offers of cloud computing services.

鈥淚n many ways, this approach聽resembles the IBM cloud strategy. IBM聽, then launched聽with the hope聽that developers will聽create applications on Bluemix and run them on Softlayer,鈥 wrote Ron Miller for .

But GE claims that its services are different because they were specifically built with the security of big industrial companies in mind. Moreover, GE has a more keen understanding than other companies of how industrial machinery operates, company representatives insist, a fact that allows it to predict the impact certain data sets will have on its customers鈥 equipment.

Starting off, General Electric plans to build a data center on each of the US coasts. Around $500 million will be spent annually on the new endeavor, company officials . The company envisions that the cloud will be made available to outside customers sometime in 2016.聽

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