IBM To Invest $3 Billion In 'Internet Of Things,' Teams Up With Weather Company

IBM is investing $3 billion into a new division that will focus on growing market for connected devices, a.k.a "Internet of Things."

The company plans to make its real-time analytics available to makers of these devices to help improve their functionality.

"These resources will be made available on an open platform to provide manufacturers with the ability to design and produce a new generation of connected devices that are better optimized for the IoT," IBM said in a statement.

"These resources will be made available on an open platform to provide manufacturers with the ability to design and produce a new generation of connected devices that are better optimized for the IoT," IBM said in a statement.

According to estimates, IBM said 90 percent of the generated data by devices such as smartphones, tablets, connected vehicles and appliances is never analyzed and much of the data begins to lose value if not quickly analyzed.

IBM also announced that it's teaming up with Weather Company, which operates the Weather Channel, for improved data collection from weather sensors, aircraft, smartphones, buildings and moving vehicles.

"This deal combines the capabilities of the world's largest and most advanced commercial weather company with the leader in big data and analytics," said David Kenny, chairman and chief executive of The Weather Company.

"This is a watershed moment for businesses that have long been impacted by weather but haven't had the rich data or enhanced decision-making ability to drive positive business outcomes."