Credit: Shutterstock photoInternational Business Machines CorporationIBM and Dublin City University (DCU) Water Institute have announced a collaborative research pilot to make use of various Internet of Things (IoT) technologies for environmental management and monitoring.
More specifically, sensors developed by DCU will be integrated with IBM's cognitive IoT and machine learning technologies to conserve and protect natural resources and address issues pertaining to environmental. One such application will be water quality monitoring for both marine and freshwater environments.
Initially, the sensors will be deployed on Lake George in New York State. Later on, IBM and DCU Water Institute will selectively pilot these technologies in the U.S. and Ireland.
Notably, shares of IBM gained 0.52% on Wednesday. The stock has outperformed the Zacks Computer - Integrated Systems industry on a year-to-date basis. While the industry gained only 3.5% during the period, the stock appreciated 5.3%
The outperformance of the stock could be attributed to growing adoption of the IBM Watson IoT platform as a well as an expanding portfolio that is boosting its top line.
What it Means for IBM?
As per a MarketsandMarkets report, smart water management market is projected to reach a whopping $20.10 billion by 2021 at a CAGR of 18.9%.
Competition is stiff with the presence of major players such as Veolia Environment, Suez Environment, ITT Corporation and Utilities and Severn Trent.
We believe that IBM's collaboration with DCU Water Institute will position the company better as it focuses on lowering the costs of sensor technologies compared to commercial technologies available in the market. This will pave the way for greater adoption.
International Business Machines Corporation Price and Consensus
International Business Machines Corporation Price and Consensus | International Business Machines Corporation Quote
Moreover, as per an IDC report, the IoT market is estimated to reach a stellar 1.7 trillion by 2020. Although the IoT landscape is currently being dominated by Intel INTC , followed by Microsoft MSFT , Cisco CSCO and Alphabet owned Google, we expect such collaborations to help IBM penetrate further in the broader IoT space.
Zacks Rank
At present, IBM carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 (Strong Buy) Rank stocks here .
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
