Throwaway, as I work for a company that competes with GE in this space.
This is GE's business model. When they want to enter a space, they throw money ($B) at it until they have a business. They tend to prefer organic builout, but they will buy companies or partner if they think they can't win organically. If you're willing to do that, you almost always get some traction, just because you have unimaginable resources and are willing to adjust your tactics if the initial gambit fails. They tend to do a lot of advertising for key businesses - this is why you see GE Aviation billboards in airports, and GE Oil & Gas ads in Houston.
The model has worked pretty well in the past - a good example is GE's entry into commercial jet engines in the early 70s. A good example where it failed was GE's computer business in the 60s.
I can't prove it (just a feeling), but I think Predix doesn't really have what it takes yet. We've spent a lot of time studying it, and it doesn't seem to offer real value to customers yet. That doesn't mean it won't get there eventually.
However, if Predix doesn't do well, we expect them to go on an acquisition spree to buy a few of the winners. Bently Nevada is a good example of that play - GE controls something like 70% of the machinery protection market. They didn't build it, they just went and bought Bently.
GE is clearly signaling that they badly want to be in this market, and I think it's pretty likely they'll eventually get there.
This is GE's business model. When they want to enter a space, they throw money ($B) at it until they have a business. They tend to prefer organic builout, but they will buy companies or partner if they think they can't win organically. If you're willing to do that, you almost always get some traction, just because you have unimaginable resources and are willing to adjust your tactics if the initial gambit fails. They tend to do a lot of advertising for key businesses - this is why you see GE Aviation billboards in airports, and GE Oil & Gas ads in Houston.
The model has worked pretty well in the past - a good example is GE's entry into commercial jet engines in the early 70s. A good example where it failed was GE's computer business in the 60s.
I can't prove it (just a feeling), but I think Predix doesn't really have what it takes yet. We've spent a lot of time studying it, and it doesn't seem to offer real value to customers yet. That doesn't mean it won't get there eventually.
However, if Predix doesn't do well, we expect them to go on an acquisition spree to buy a few of the winners. Bently Nevada is a good example of that play - GE controls something like 70% of the machinery protection market. They didn't build it, they just went and bought Bently.
GE is clearly signaling that they badly want to be in this market, and I think it's pretty likely they'll eventually get there.