GE Capital
Fall 2012
The Industrial Internet
Intelligent Machines, Big Data and Software Innovation
Ubiquitous connectivity
has spawned a new
era, where all types of
industrial equipment
are becoming “Internetaware”, leading to
breakthrough business
insights. GE is making
significant investments
in technology that
enables and maximizes
the potential efficiency
and productivity benefits
offered by the Industrial
Internet.
CONTENTS
Awash in Big (Industrial) Data...Sooner Than You Think....................................................................... 2
Q&A with Bill Ruh, Vice President, GE Software Center........................................................................ 6
Financing/Transactions...............................................................................................................................10
Resources/Links.............................................................................................................................................11
GE Capital Spotlight Transaction..............................................................................................................12
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GE Capital
Fall 2012
Awash in Big (Industrial) Data...Sooner Than You Think
CORPORATE VISION
Internet technologies are rapidly spreading beyond consumer and business applications
to embrace the physical world. Whether you realize it or not, almost every device you
own or use now has the ability to produce data about operating performance. From
coffee machines to jet aircraft engines, intelligent devices are monitoring systems,
collecting data, communicating with each other, and alerting operators to changing
conditions.
The rate at which all types of devices and industrial equipment are connecting to the
Internet is astonishing. Cisco has estimated that 25 billion devices will permanently
connect to the Internet by 2015, rising to 50 billion devices by 2020. At that rate there
will be nearly 7 times more devices permanently connected to the Internet than people in
the world (see chart below). Similarly, Gartner estimates that there will be more than 200
billion devices that intermittently connect to the Internet by 2020.
The combination of low-cost sensors, advanced software and evermore powerful
computing firepower is opening the door to new insights in the management of energy,
transportation, manufacturing, health care and other industries. Smart companies
are harnessing these insights into breakthrough levels of efficiency and productivity.
int
weight on stroke
GE believes that the efficiencies derived from the Industrial Internet could save global
weight on stroke
industries $150 billion annually.
In this report we discuss with the head of the GE Software Center how GE is developing
technology for the next generation of industrial services that promises to transform
business and improve lives.
“The most important venture focus for us is
the Industrial Internet; owning the software
layer around our products. This requires
data, analytics, and customer interface
expertise. In this area, GE will interact with
Silicon Valley every day.”
60
7
50
6
5
40
30
4
!"#$%&"''$()$*%
M ore C onnected
Than P eople
Devices
+$,-($.%/01'%2$"34$%
3
20
2
10
0
1
2003
2010
2015
2020
7.6
World Population (Bn)
6.3
6.8
7.2
Connected Devices (Bn)
0.5
12.5
25
50
Connected Devices/Person
0.08
1.84
3.47
6.58
Connected Devices Per Person
(Line)
P o p ulatio n & C o nnec ted D evic es ( B n)
Jeff Immelt, Chairman and CEO
0
Source: Cisco Systems
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GE Capital
Fall 2012
Deep Industry Expertise + Software-based Analytics =
“Intelligent” Big Data
The Industrial Internet represents the most profound convergence of business and
technology since the industrial revolution – a new productivity revolution. Similar to the
dramatic productivity benefits of putting a computer on every desk in the workplace,
GE’s vision is to transform productivity and efficiency in the industrial world by putting
computer intelligence in every machine. And as email revolutionized communication
between people, the Industrial Internet will act as an email network for machines and
transform how people interact with those “intelligent” machines.
GE believes that in order for the benefits of the Industrial Internet to be maximized,
two critical processes have to occur. The first is turning Big Data into practical and
commercially valuable insights. This is accomplished by matching the data with
innovative software-based analytics that are grounded in extremely deep industryspecific expertise and experience. Secondly, a software-enabled intelligent network is
needed to automate the delivery of that information precisely and proactively to the right
decision makers at the right time – as opposed to decision makers having to reactively
search for that information. This represents hundreds-of-billions of dollars saved in time
and resources across major industries. Altogether, the result should be products that are
stronger and safer; energy and food production that is more sustainable; travel that is
more efficient; and healthcare that is more effective and accessible.
Aside from the potential improvement of machine operating efficiencies, another benefit
of the Industrial Internet is the potential to improve the efficiencies of human processes
associated with machine operation and maintenance. For example, consider a jet
engine connected to the Internet. In-flight and post-flight data from the engine would let
engineers know everything about its operational state. This could improve the efficiency
and effectiveness of where engineers and mechanics direct their maintenance efforts.
The result would be less unscheduled engine downtime, which in turn would improve
airline operating efficiency and profitability, customer satisfaction and safety.
BIG DATA = BIG PAYOFF
A recent report from the University of
Texas stated that the median fortune 1000
company could increase revenue $2 billion
annually by improving the usability of its
data by only 10%.
Similarly, a report from the UK reported that
increased use of big data analytics could
save the UK government between $24 and
$50 billion annually.
A recent report in The Economist quotes
an analyst prediction of hardware and
connectivity revenue associated with the
development of the Industrial Internet
growing 23% annually to $948 billion by
2020.
GE & MIT BUILDING CROWDSOURCING
SOFTWARE PLATFORM
GE, in coordination with the Massachusetts
Institute of Technology (MIT) and the
Defense Advanced Research Agency
(DARPA), is embarking on a program
(http://vehicleforge.org/) to revolutionize
modern-day design and manufacturing.
The goal of the program is to develop a
crowdsourcing platform that would enable a
global community of experts to design and
rapidly manufacture complex systems such
as military vehicles, aviation systems and
advanced medical devices. Currently, these
“cyber-physical systems” can take decades
to develop. The primary goal of this program
is to dramatically reduce that timeline.
The new crowdsourcing platform is a key
part of GE’s efforts to build the Industrial
Internet. It will connect data, design
tools and simulations in a collaborative
environment to accelerate the design of
highly complex industrial systems.
In another example, a farmer can have his fields fitted with a Geographical Information
System (GIS), which can report up to the minute soil conditions. The farmer can examine
this information and determine exactly where to focus his resources such as fertilizer,
water etc. The use of this technology can increase crop yields while reducing costs and
improve bottom-line profitability.
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GE Capital
Fall 2012
“This is like a billion dollar start-up backed by GE” - Bill Ruh
CORPORATE VISION
According to Bill Ruh, head of the GE Software Center, the Industrial Internet is “a
software-driven movement that will advance industry and improve lives by connecting
people and businesses to the nearly 50 billion machines and systems that move our
world.” The starting point for the Industrial Internet lies in the enormous amounts of
machine generated operating data. Transforming this “Big Data” into commercially
valuable information and routing it to the right people at the right time is where the GE
Software Center is focused on becoming an Industrial Internet leader.
In July of 2012, the first 150 employees of the GE Software Center moved into a new
global headquarters in San Ramon, California. The new headquarters galvanizes GE’s
Industrial Internet effort and currently has more than 200 employees with plans for hiring
200 more over the next 12 months.
Engineers at the center have already begun collaborating with GE’s existing 5,000
software engineers – spread throughout the company’s various industrial units. The
vision is that eventually all GE products will become intelligent with software and
connectivity, and those products will become more reliable and productive because of
that intelligence. By connecting advanced software to GE equipment and systems to
deliver real-time performance analytics, GE’s customers will also have more insight into
their own operations, including the ability to predict and proactively address performance
issues before becoming a problem.
GE projects that its annual commercial opportunity in the Industrial Internet will
eventually be in the neighborhood of $5 billion from products and services associated
with Industrial Internet systems and analytics.
“Think about the data from an MRI or CT
scanner, but Internet enabled. You can start
making better prognostications in terms
of [care] delivery and how you operate a
hospital.” The same approach works in rail,
aviation, and investing. “Remote monitoring
in healthcare started a decade ago and
now you see it flowing into other areas.
There is going to be a really interesting
convergence.”
Beth Comstock, Chief Marketing Officer
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Fall 2012
Decreasing Component Costs – Big Tailwind for the
Industrial Internet
RECENT HEADLINES ASSOCIATED WITH
INDUSTRIAL INTERNET APPLICATIONS
One of the key drivers of Industrial Internet adoption will be the decreasing cost of
enabling hardware components.
Real-time operating performance data is typically captured through sensors embedded in
machinery, equipment, or virtually any other type of product. These sensors collect and
transmit data over hardwired and/or wireless networks to a centralized system, which
processes the data into actionable information.
The table below shows the costs of essential Industrial Internet hardware components
and their projected price declines.
Technology Component
2010 Cost*
2015 Cost**
% Change
Average
$1.42
$0.98
-31%
Radio, Wi-Fi
$1.50
$0.80
-47%
Radio, Bluetooth
$1.00
$0.50
-50%
Processor (basic 8-bit microcontroller
chip with embedded flash memory)
$1.00
$0.85
-15%
Sensor (temperature)
$1.00
$0.75
-25%
Sensor (vibration/accelerometer)
$1.50
$1.00
-33%
Camera (1.8 megapixel CMOS
Image Sensor)
$1.80
$1.20
-33%
Microphone
$1.20
$1.00
-17%
GPS
$1.25
$0.70
-44%
Energy Source (inductive loop wireless
power, incremental cost per unit)
$2.50
$2.00
-20%
• According to IDC, global shipments of
smart meters will surpass 130 million
units by 2016.
• ARM has moved to low energy 32-bit chip
technology, a move designed to enter the
Industrial Internet market.
• IDC reports that the “Big Data” market
will grow from $3.2 billion in 2010 to $16.9
billion in 2015.
• GainSpan and Exosite are working
towards providing a low power Wi-Fi
enabled cloud connected solution for the
Industrial Internet.
• The Industrial Internet is being applied
to farming in the form of Precision
Agriculture. IBISWorld recently valued the
Precision Agriculture market in the U.S.
at $1.3 billion, while growing annually at
more than 6% through 2017.
Source: Gartner Research
* Lowest costs for simplest realistic implementation; **2015 cost assumes the same functionality as the corresponding 2010 figure;
CMOS=complementary metal oxide semiconductor.
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Fall 2012
Q&A with Bill Ruh - Vice President, GE Software Center
INTERVIEW WITH BILL RUH
We recently sat down with Bill Ruh, Vice-President and head of the GE Software Center, for
a check-in on GE’s investment in software and the Industrial Internet.
GE’s Software Business
Michael Zimm: So Bill, let’s start off the discussion with a quick overview of your software
organization within the context of GE’s overall software footprint. Anything that you can
share with us in terms of the organization’s revenue size, number of software engineers
that you currently have, plans for growth over the next few years…any context would be
appreciated.
Bill Ruh: I think if you look at the overall size of the GE Software Business, we did nearly
$3 billion of software licensing sales in 2011. Additionally, if we look at the amount of
software that we build that is monetized through our services, meaning we don’t actually
license the software but it is included in a lot of the products and services that we sell,
especially in our industrial businesses…energy, aviation, healthcare, transportation,
it’s a sizable software business when we compare it to anyone out there. Globally, we
have about 5,000 people dispersed throughout the company who are building software
products, beyond just what we have in our IT organization. So GE already has a sizable
software business and we are now creating this global software headquarters that will
galvanize the effort.
Michael Zimm: For folks who are not very familiar with the GE’s presence in software, how
would you characterize your go to market strategy when compared to the more familiar
names in software such as Microsoft or Oracle?
Bill Ruh: Most people have a specific idea of what a software business is and I think in
many cases people will most easily associate companies such as IBM and Oracle as
traditional bellwether software companies. However, we’re starting to see the definition of
great software companies change a little.
We now see a new generation of great new software companies emerging…Google
comes to mind as does Facebook and Amazon. Take Amazon for example. Amazon
does not really make money selling software, but in our eyes they are a great software
company. Amazon applies software to make money in retail sales. Google makes
money using software in the context of advertising and other media services. And even
Facebook is a great software company as they’ve proven to be able to make money in
other ways than sales of traditional software licenses.
Bill Ruh
VP, GE Software Center
Mr. Ruh is responsible for setting and leading
the software services and solutions portfolio
strategy, development and operations
across all of GE. His team develops software
to power the Industrial Internet, a living
network of intelligent machines and systems
designed to advance industry and improve
lives. These systems and solutions put
data to work for GE’s customers, giving
businesses intelligent insight to make more
sustainable and safe products.
Mr. Ruh has more than 25 years of industry
experience in enterprise application
integration and object oriented technology.
Previously, he was Vice President at Cisco
where he held global responsibility for
developing advanced services and solutions.
Before that, Mr. Ruh served as Executive Vice
President and Chief Technology Officer of
Concept Five Technologies, Inc. Prior to that,
he served as the Chief Technology Officer
and Senior Vice President of Software AG, Inc.
where he was responsible for the growth and
expansion of the solutions and consulting
services team to provide customers with
customized and industry-specific solutions.
Mr. Ruh has also held various management
roles at The Advisory Board, The MITRE
Corporation, IBM and AkroMetrix, LLC. He
is an accomplished author and a frequent
speaker on such topics as emerging
business models, cloud computing, analytics,
mobile computing, agile development,
large scale distributed systems and m2m
communications. Mr. Ruh earned a B.S. and
M.S. in Computer Science from California
State University, Fullerton.
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I think we (GE) are falling into this new generation of great software companies as we
are really not selling software application licenses on a standalone basis. Rather, we’ll be
applying software in the industries that GE serves….with the goal of creating new business
models and new software enabled functionality that will transform how GE products and
services are delivered and how customers interact with those products and services. So
when you think of GE, think of us as being great at developing that type of software. We
believe great software companies of today and tomorrow are heading in this direction.
GE’S INVESTMENT IN SOFTWARE & THE
INDUSTRIAL INTERNET
GE is investing $1.5 billion in its software
business over the next 4 years. GE’s annual
revenue from software in 2011 was nearly
$3 billion and is projected to grow to $5
billion by 2014.
Michael Zimm: So, who would you consider to be major competitors in your targeted
segment of the software space?
Bill Ruh: When you look at who our competitors are going to be, it will be an interesting
set of companies. It’ll certainly include traditional competitors such as Siemens as they
begin to build their software efforts. But in many of the industries that we are in, there
remains a lot of white space that can be transformed by software. So in the same way
that the consumer world has been transformed by software over the last decade, I think
the industrial world is about to be disrupted and transformed by software. Initially,
determining the winners and losers is going to be hard to do. But I think GE is positioning
itself to take a leadership role in the concept of the industrial world transformed by
software and the Internet.
GE’s Software Revenue Growth ($B)
$6
$4
$2
$0
2008
2011E
2014F
Industrial Internet – Commercial Opportunities
Michael Zimm: This is a great lead-in to the crux of the discussion. Let’s dig a little further
into the concept of the Industrial Internet. Can you walk us through your thoughts of how
the Industrial Internet will evolve?
Bill Ruh: I think the interesting thing is that the concept of the Industrial Internet is not
new. This was really talked about well over a decade ago. But the fact is that we’re only
now seeing substantial momentum with the number of connected devices (computer
and non-computer) already crossing the 10 billion mark. If you start to look out to 2020,
the predictions are around 50 billion connected devices. But regardless of the exact
number, the bottom line objective for GE is to improve the operational efficiency of the
multitude of connected industrial assets. Similarly, we aim to streamline and optimize
the processes around those industrial assets, which will improve the productivity of labor
assets. Simplistically, GE’s vision for the opportunity around the industrial internet is to
build networks that harvest data from heavy equipment in order to boost efficiency for
commercial users such as railroads and airlines.
Michael Zimm: Maybe you can give us an idea of what some of the specific commercial
opportunities might look like?
Bill Ruh: As far as the commercial opportunity, I think one big area in the future is going
to be sensing …meaning…the smart devices that enable industrial assets to constantly
gather and feed information to the people that manage those assets. The sensors will
enable operators to know where an asset is located, who owns it, its activity, current
configuration and any operational adjustments that need to be made.
GE SOFTWARE CENTER KEY INITATIVES
A representative sample of recent key
initiatives at the GE Software Center:
• Working with GE Water & Process
Technologies on a major Industrial
Internet project recently recognized by
CIO magazine as one of the Top 100
projects of the year.
• Working with GE Healthcare and GE’s
Global Research Center Analytics Labs
on a project implemented at New York’s
Mt. Sinai Hospital. The project enables
the hospital to operate at 95% capacity,
which far exceeds the industry standard
of 80% while resulting in an estimated
$120 million in additional annual revenue.
• Working with GE Healthcare’s user
experience team on a new user interface
for MRIs and digital imagery.
• Working with GE Energy on a large-scale
service that utility companies use in
storms and disasters.
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Fall 2012
Additionally, analytics that predict what all that data means will be very important,
whether it’s to change how you deliver services to your customers or to foundationally
improve your own operations. I think that’s going to be the cornerstone of the next
generation of business. And then, it’s the ability to control your systems in real time, and
adjust dynamically. Finally, its how your people in the field are going to be able to use
that information to make more intelligent decisions and work much more efficiently. As
a result there will be a new category that will come about that we might call Industrial
Systems Management. So, the future technologies of sensing, analytics, controls and
collaboration are going to foundationally change industries. And that is where we and
our customers are going to be investing to achieve productivity gains.
Michael Zimm: How about GE’s approach specifically?
Bill Ruh: There are three areas of enablement that we believe are in the sweet spot for our
own businesses. The first is the cloud. The cloud enables us to deliver new functionality
at such a low cost that it starts to make economic sense for customers. The second
area is the idea of processing continuous streams of data rather than focused inquiries
or batch data. The final area is customer experience. Unless you really rethink the
customer experience, you are not going to be a winner in providing the kind of software
we are developing. Importantly, we’ll be delivering these software based solutions via a
multitude of channels including managed services or professional services.
M2M & INDUSTRIAL INTERNET DRIVING
WIRELSS TELCO ACQUISITIONS
With growth of the Industrial Internet poised
to explode, wireless carriers are increasingly
on the lookout for acquisition opportunities
to capitalize on this new era:
• Rogers Communications reports that the
machine to machine (M2M) market in
Canada will be $384 million.
• Verizon Communications acquired
Hughes Telematics for $612 million. The
move is a clear entry into the Industrial
Internet space.
• Vodafone acquired Cable & Wireless
Worldwide for $1.7 billion. The move will
significantly strengthen Vodafone in the
M2M and Industrial Internet markets.
Michael Zimm: What type of customer applications will be a natural fit for your
software offerings?
Bill Ruh: A straightforward example would be a mission critical device where failures can
be predicted way before the red “check engine” light goes on during a crisis moment.
We’re able to do that by looking inside the operations of the device to actually see the
deterioration. In order to do that, a lot of real-time data and deep analytics are needed in
order to see variances in patterns. Think about what this can do for the airline industry.
It should be possible to predict an engine problem 4-5 flights ahead of time. Another
example is in the energy business where you should be able to significantly reduce the
chances of having to take gas turbines offline during periods of demand in the winter or
summer. These are the type of scenarios we can influence positively.
And I leave you with one final thought. We are actually building applications that
incorporate something similar to a Facebook profile. The concept is that every device
in the world that we sell would be able to provide information about where it is located,
how it “feels”, where it is deteriorating etc. to any mechanic that “befriends” that device.
The mechanic can look at that device and interact with it, way ahead of the time when
a problem is going to occur. In summary, if I can begin to see that something is starting
to deteriorate and get out there and fix it before it breaks, that’s a foundational change.
I don’t care if it’s a wind turbine or a jet engine or a truck that’s out making deliveries
because in the end what everybody wants is predictability. That’s our vision.
FACEBOOK FOR JET ENGINES
MyEngines is GE Aviation’s mobile app that
works like a Facebook for jet engines. The
app lets aircraft maintenance engineers
and mechanics monitor the status of the
engines in their fleets, making repairs and
scheduled maintenance more efficient and
air travel more convenient.
To see a brief video overview of the
MyEngines app please click on the link
below:
Video intro to MyEngines
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Michael Zimm: If the Industrial Internet truly is the “next big thing”, can you foresee a
time when GE would be competing more directly with some of the larger, traditional
corporate applications software vendors for this opportunity?
Bill Ruh: I think this will have to work itself out. My personal belief is that we’ll find that
while the general purpose software vendors may think that they can move up the
stack, what’s going to be potentially problematic is that when you move into specialized
industries such as energy, you get into issues around understanding complex data related
to power generation etc. A vendor without industry specialization is likely to be in over
their heads quickly. It’ll be the big companies like GE who compete at the level of having
deep domain expertise and can figure out how to mine that institutional knowledge and
put it into analytics that benefit the customer. If you don’t have deep domain expertise in
how energy is distributed or generated, if you don’t understand how a power plant runs,
you’re not really going to be able to build an analytical model and do much with it. We
have deep insight into several very specific areas. And that’s where we’re staying focused.
Below that level, we may find that some software vendors will try to compete by
building tools that will enable those analytics. In the end though, GE owns a lot of
central components in these industries – in power generation or in healthcare – and
the intelligence that gets built is going to be embedded into products that serve those
industries. Others will have to figure out a way to connect into those GE solutions.
Industrial Internet – Trends in Capital Flows
Michael Zimm: What areas of the Industrial Internet are you seeing capital flowing for
startups?
Bill Ruh: We are seeing a lot of start-up funding in the area of analytics-as-a-service,
which goes beyond traditional business intelligence tools. It’s the idea that cloud based
tools are combined with libraries of analytics and may also come with actual experts. So,
these analytics-as-a-service companies are solving your business problem, not just giving
you a tool that you have to use yourself to figure out how to solve a problem.
Product Rollouts for the Industrial Internet
Michael Zimm: You have recently made an acquisition in the rail traffic area. Are those
the kind of developments that we can continue to expect from your organization in terms
of industry specific product rollouts?
THINGS TO THINK ABOUT
There are some significant obstacles to
the ubiquity of the Industrial Internet.
Regulators and businesses will need to
work closely together to overcome these
challenges:
Spectrum crunch – In order to provide
service, wireless providers must acquire
and utilize radio spectrum. Radio spectrum,
particularly in the United States, is a limited
resource that is leased to providers by the
government. A lack of spectrum can slow
the advancement of the Industrial Internet
– as the bandwidth necessary to operate
many Industrial Internet applications will
not be available. Exploding data usage in
the U.S. has currently left wireless carriers
scrambling to get more spectrum. The
spectrum crunch will only worsen as more
machines begin connecting to the Internet.
Privacy concerns – As more and more
devices and machines connect to the
Internet – more data can be exchanged
about individual behavior and preferences.
This increased sharing of user specific
data has raised some alarms. The EU has
recently created and signed an “Internet of
Things” privacy framework. In particular,
the concern in the EU surrounds RFID tags
and tracking of personally identifiable
information.
Global standards – Universal technical
and operational standards are needed for
the platforms and systems which will run
the Industrial Internet. This will ensure an
environment in which information exchange
can be free across industries, systems, and
platforms.
Bill Ruh: I think you’ll see a couple of things. To sort of organize this a little bit, that
particular acquisition, a company called R.M.I., was what I’d call an application that
manages rail operations. I think you will see us continue to build our portfolio of those
types of applications with deep knowledge about the operations of the various industries
we serve. We also have a strong interest in analytics-as-a-service, where we will either
partner or acquire to broaden our capabilities.
Michael Zimm: Bill, thank you.
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Fall 2012
Financing/Transactions
PRIVATE EQUITY AND BIG DATA
The Industrial Internet has been an area of increasing interest for private equity investors.
The table below shows the growing number of financial sponsor transactions (M&A,
private placements) that are either direct or tangent opportunities related to the
Industrial Internet.
Private equity investors have begun to see
the value in “Big Data” and started to invest
significantly in the industry. In 2011, firms
invested $2.47 billion in Big Data, up from
$1.53 billion in 2010 and $1.1 billion in 2009.
Private equity investment can be expected to increase as the Industrial Internet continues
to develop. There has already been tremendous growth within the past few years.
Some of the transactions have substantial size behind them as well. Two of the larger
transactions include:
tint
• Advent International acquired the card systems and identity group of Oberthur
t weight on stroke
Technologies SA for $1.5 billion (12/1/2011). Oberthur Technologies SA (France) provides
weight on stroke
security solutions for the near field communication (NFC) sector.
• ViVOtech (USA), an industrial internet infrastructure company, has raised $96 million in
funding, most recently in March (3/26/2012). Investors include Citicorp Venture Capital,
Ltd, Motorola Mobility Ventures, Nokia Growth Partners, and SingTel Innov8 Pte, Ltd.
Investments in Big Data ($billions)
$3
$2.47
$2
$1
$1.53
$1.10
$0
2009
Number of U.S. Based Industrial Internet Related Transactions
2008-2012 YTD
50
40
40
34
30
20
25
24
17
10
0
2008
2009
2010
2011
2010
2011
Source: Thomson Reuters
2012 YTD
Source: S&P Capital IQ
Notes: Through 10/17/12. Filter was applied to include only U.S. based companies involved in “Internet of Things”, “Industrial Internet”,
“NFC”, “Internet of Devices”, “Machine to Machine”, “Near Field Communication”, “RFID”, or “Big Data”
Peng Li, of Accel partners divides big data
investments into 3 components: (1) storage
and networking platforms, (2) platforms that
analyze huge volumes of data, and (3) data
driven applications.
Other notable private equity investments
include:
• Accel partners created a $100 million
fund dedicated to early stage and growth
companies focusing on big data.
• Mu Sigma, a provider of big data analytics,
raised $108 million in private equity
funding led by Sequoia Capital and
General Atlantic.
• Opera Solutions raised $84 million in
funding from a group led by Silver Lake
Sumeru and Tola Capital.
Industry Research Monitor: The Industrial Internet 10
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© 2012 General Electric Capital Corporation. All Rights Reserved.
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GE Capital
Fall 2012
RESOURCES / LINKS
GE Global Research Center – Software
Sciences and Analytics
http://ge.geglobalresearch.com/
technologies/software-sciences-analytics/
GE Reports Industrial Internet Website
http://www.gereports.com/industrialinternet-reinventing-the-industrialrevolution/
Bill Ruh on the Industrial Internet and Big
Data – Article published in Forbes
http://www.forbes.com/sites/
ciocentral/2012/10/04/the-industrialinternet-even-bigger-than-big-data/
Access GE – Bringing the full breadth of GE
to our customers
http://www.americas.gecapital.com/
working-with-us/access-ge
GE Sponsor Finance – Telecom, Media &
Technology (TMT) Financing Solutions
http://www.americas.gecapital.com/
financing-solutions/telecom-mediatechnology-financing
GE Licensing - actively engaging technology
transfer partners for big data solutions
in cloud storage, social media + internet
metrics and video analytics.
www.gelicensing.com
GE Capital IT Inventory Financing Solutions
http://www.gecdf.com/financing-solutions/
technology-products
GE Capital IT Equipment Financing Solutions
http://www.americas.gecapital.com/
financing-solutions/it-equipment-financing
Industry Research Monitor: The Industrial Internet 11
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© 2012 General Electric Capital Corporation. All Rights Reserved.
To sign up to receive an electronic copy of this Industry Research Monitor, please visit www.gecapital.com/IRM
GE Capital
Fall 2012
GE Capital Spotlight Transaction
DID YOU KNOW?
$185,000,000 Senior Credit Facility
Joint Lead Arranger
GE Capital’s financing business for Telecom,
Media, & Technology (TMT) completed 38
transactions totaling $3.4 billion in financing
during 2011.
In October 2011, GE Capital, Telecom, Media and Technology (TMT) was Co-Lead Arranger for
a $185 million senior credit facility to Welsh Carson Anderson & Stowe for the acquisition of
Triple Point Technology Inc.
Founded in 1993, Westport, CT-based, Triple Point Technology Inc. is the leading global
provider of software to manage commodities and enterprise risk. The company provides
innovative solutions to competitively address the complex commodities value chain: mining,
buying, selling, trading, and procurement; enterprise risk management; scheduling and
logistics; storage; processing; and settlement and accounting. Triple Point’s Commodity
Management platform enables over 300 customers in 35+ countries to profitably manage
exposure to energy and raw materials across industries, including energy, metals, minerals,
agriculture, transportation, shipping, consumer products (CP), discrete manufacturers, and
big box retailers.
GE Licensing www.gelicensing.com
Actively engaging technology transfer partners for big data solutions in cloud storage,
social media + internet metrics and video analytics.
GE CAPITAL — AMERICAS
INDUSTRY RESEARCH TEAM
Richard Aldrich, CFA
646-428-7365
Chemicals & Plastics
richard.aldrich@ge.com
Metals & Mining
Auto & Auto Parts
Ben Abramovitz, CFA
646-428-7129
Media & Telecom
ben.abramovitz@ge.com
Jeff Englander, CFA
646-428-7135
Healthcare
jeffrey.englander@ge.com
Construction
Industrial Products & Services
Kimberly Savilonis
480-565-6289
Franchise
kimberly.savilonis@ge.com
Loren Trotta
203-229-1877
Food, Beverage & Agribusiness
loren.trotta@ge.com
Financial Services
Michael Zimm, CFA
646-428-7015
Technology & Business Services
michael.zimm@ge.com
Aerospace & Defense
Truck Transportation
Disclaimer: Although General Electric Capital Corporation (“GE”) believes that the information contained in this
newsletter has been obtained from and is based upon sources GE believes to be reliable, we do not guarantee its
accuracy and it may be incomplete or condensed. GE makes no representation or warranties of any kind whatsoever in
respect of such information. GE accepts no liability of any kind for loss arising from the use of the material presented in
this newsletter. This newsletter is not to be relied upon in substitution for the exercise of your independent judgment or
legal advice.
Special thanks to contributing editor:
Srikant Narasimhan
Industry Research Monitor: The Industrial Internet 12
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© 2012 General Electric Capital Corporation. All Rights Reserved.
To sign up to receive an electronic copy of this Industry Research Monitor, please visit www.gecapital.com/IRM