HPE, Intel To Produce IoT Solutions Running Outside the Data Center

Create: 11/16/2015 - 12:00

It’s been only two weeks since HP officially split itself in two. But with all the subsequent activity, it feels more like two months—or maybe two years. 

The two companies—now known as HP Inc. and Hewlett Packard Enterprise (HPE)—officially split on Nov. 2. Since then, they have separately introduced a slew of products and solutions. These included SMB servers, a cloud docker, storage devices, quad-core ultrabooks, and a heat-transfer solution for workstations. Phew! But wait, there’s more: Today, HPE announced that it has formed an alliance with Intel to produce Internet of Things (IoT) solutions that run outside the data center. The two suppliers also plan to jointly operate three IoT labs.

The new HPE-Intel IoT solutions will sit at the data-center edge to collect, process and analyze data from connected sensors and devices. These devices will be powered, naturally enough, by Intel’s 6th Generation Core i5 and Atom processors. We should have more details on Dec. 1, which is when HPE says it will be unveiling its full IoT strategy at theHPE Discover 2015 conference in London.

Meanwhile, the three IoT labs will be called IoT Discovery Labs, and they’ll be located within HPE facilities in Houston; Grenoble, France; and Singapore. The three labs will be offered to other organizations as secure and confidential settings for testing IoT applications. And to complement the labs, HPE is also introducing reference architectures to give customers templates for delivering IoT solutions.

Intel of Things

Don’t be surprised by Intel’s involvement. The supplier now has a major IoT strategy that included the establishment of a separate IoT Group. Last month, Intel reported that its IoT Group delivered third-quarter revenue of $581 million, 10 percent more than it reported in the year-earlier period. And for the nine-month period ended Sept. 26, Intel’s IoT Group delivered revenue of $1.67 billion, an increase of nearly 8 percent over the year-earlier period. 

That’s a lot of money, though still a small part of Intel’s overall business. Intel’s total Q3 revenue came to $14.5 billion, which means the IoT group’s $581 million represents only roughly 4 percent. But the overall IoT market is growing quickly. Market watcher IDC has  predicted that the worldwide IoT market will expand from about $656 billion last year to $1.7 trillion in 2020, a compound annual growth rate of nearly 17 percent. As they say on the billboards, watch this space!

Peter Krass is the editor of Business Compute Forum.

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