GE Digital is acquiring Nurego, a company supporting business operations for IoT networks linking industrial big machines.
The buy comes after GE (General Electric) built a two-year-long working relationship with Nurego to drive GE’s platform Predix, software that General Electric calls “the operating system for the Industrial Internet” and offers a number of native apps for industrial IoT companies (IIoT) to use. According to a blog post from Nurego investor The Hive, Nurego was indispensable to the Predix system. This purchase seems to validate that argument.
“The Nurego team based primarily in Tel Aviv, Israel will become a part of GE Digital.” wrote T.M. Ravi, Managing Director of The Hive. “We [would] like to thank Ervin Leibovici, CEO of Nurego, and Hans Hanspal, the founder, both of whom The Hive has worked closely with for Nurego’s success.”
Nurego focuses on business operations, making it easier to monetize IoT software programs. Nurego is actually the byproduct of The Hive and EMC (Dell), who collaborated to gift some intellectual property and manpower to the new company. The Hive, Paul Maritz and EMC are listed as Nurego’s primary investors, with Maritz holding a seat on the board.
The Hive has says it has focused on “developing and funding” startups in the IoT market since at least 2013. They have also invested in machine learning company FogHorn and Sensify Security.
“We see this wave of industrial IoT applications as the fourth industrial renaissance owing to the wide-scale disruption that it is bringing to smart machines & autonomous operations, product lifecycle management, asset financing, service & support, and business models for utilizing assets,” added Ravi.
IIoT is an enormous large market that covers a lot of sectors and will be worth an estimated $151.01 billion by 2020. That report by Markets and Markets also points to GE as one of biggest players in the sector globally. It’s tough to narrow down a particular specialty for any company managing industrial IoT systems, as support can apply to any number of verticals.
“The ability to capture and analyze large volumes of machine data brings new capabilities to respond to changes, decision-making and interacting with the ambient physical environment,” Ravi continued. “The combination of these two competencies is already driving business disruption in aviation, transportation, manufacturing, logistics, energy, and other sectors.”