IBM Dumps Weather Business as Transformation Continues
International Business Machines (NYSE: IBM) made a multi-billion-dollar bet on data and the Internet of Things in 2016 with the acquisition of The Weather Company's business-to-business, mobile, and web properties. While IBM never disclosed the price tag, the deal was estimated at over $2 billion.
The rationale for the acquisition revolved around data. The Weather Company's corporate clients used the company's data, collected from public sources as well as nearly 150,000 small weather stations, in a variety of ways. Airlines used it to minimize the impact of turbulence, and insurance companies used it as a risk assessment tool.
Since that deal, IBM's strategy has shifted. The company has narrowed its focus to two areas: Hybrid cloud computing and artificial intelligence. Through its software, hardware, and consulting segments, IBM helps enterprise customers increase productivity and decrease costs through its broad cloud and AI offerings.
Source Fool.com
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