The Week in IoT: Samsung invests US$22bn, Sierra swats analysts with results, and Siemens splashes the cash
It’s been quite a week for the tech sector. Some vendors are betting the farm to catch up or just to find a niche in the Internet of Things. Others are smirking as they see a return on earlier IoT investments. Jeremy Cowan reports from a volatile marketplace.
Samsung Group is throwing US$ 22 billion (yes, you read that right) into artificial intelligence (AI) and other new technologies, Siemens continues to buy business, IBM has opened four new testing centres to focus on security for automotive and industrial Internet of Things (IIoT) applications, Intel is focusing on chips for AI, while Sierra Wireless says “I told you so!”.
Seoul, Korea-based Samsung Group (005930.KS) has told Reuters it will invest 25 trillion won ($ 22 billion) in artificial intelligence, 5G mobile technology, electronic components for vehicles, and the biopharmaceutical business in pursuit of new growth areas. (Also see: Qualcomm pays $ 2bn as it kills plans to buy NXP but board authorises $ 30bn stock repurchase, insists strategy unchanged.)
D’you want chips with that?
Weakness in Samsung’s semiconductor and smartphone businesses has forced the Korean giant into a radical rethink of its development strategy. In fact, this investment is expected to be part of a 180 trillion won ($ 158 billion) three-year plan to create new revenue streams. There has been a long wait for evidence of Samsung’s new business direction since the heir to the industrial group Jay Y. Lee was imprisoned for bribery. He was released from jail in February on a suspended sentence.
Intel (INTC) reports that it sold $ 1 billion worth of Xeon AI processor chips in 2017. It too has suffered, this time from falling PC sales and is increasingly dependent on revenues from data centres that provide the computing power for mobile and web applications. These centres are said to be reliant on artificial intelligence for speech recognition and other functions.
Siemens musters $ 600mn for mendix
Meanwhile, Siemens (SIEGY) has agreed to acquire mendix, a provider of cloud native low code application development. Siemens will pay €0.6 billion in cash to acquire the Rotterdam-based company which helps enterprises to digitalise their operations. Low code application development platforms provide features for rapid development, deployment and execution of cloud-based applications.
Klaus Helmrich, member of the Managing Board of Siemens AG says, “Mendix is a leader in the rapidly expanding low-code segment and their platform will help our customers to adopt MindSphere even faster by accelerating cloud-based application development for the Industrial Internet of Things.”
mendix will retain its brand and continue serving customers across a range of industries with its platform and broad ecosystem and community. Siemens will invest in mendix’s independent product roadmap, “continuing (mendix’s) legacy as the most-innovative, open low-code cloud platform”.
Sierra Wireless can afford to smile
It’s fair to say that some investment analysts have been forced into a major about-turn by Canada-based Sierra Wireless’s latest financial results.
Market watchers have rapidly been changing their advice to BUY as Sierra Wireless’s Q2 Earnings results showed a year-on-year rise in total revenue of 16.4% to $ 201.9 million. Adjusted EBITDA (earnings […]