• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Bruce Kamich
    • Doug Kass
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • TheStreet Smarts
  1. Home
  2. / Investing
  3. / Transportation

Microsoft Can Help GE 'Fully Unlock' Its Industrial Internet

GE's strategy to boost machine performance through its proprietary cloud gets a boost.
By JAMES PASSERI Jul 12, 2016 | 04:06 PM EDT
Stocks quotes in this article: MSFT, GE, CSCO, INTC, VZ, T, VOD, S

Since last fall, General Electric  (GE) has been looking for the right partners for its Predix operating system, the cloud-based backbone supporting its so-called Industrial Internet.

And it may have found an ideal match in Microsoft  (MSFT) , William Blair analyst Nick Heymann said in a Tuesday report. (GE stock is held in Jim Cramer's Action Alerts PLUS charitable trust.)

William Blair, which maintains an Outperform rating on GE and $38 12-month price target, said GE's Monday announcement that it has inked two new partnerships to help develop Predix -- Microsoft and airline Flydubai -- will bring meaningful change to the Industrial Internet, which aims to optimize the performance on a range of machines through sensors connected to GE software.

"Every industry and every company around the world is being transformed by digital technology," Microsoft CEO Satya Nadella said in a Monday statement. "Working with companies like GE, we can reach a new set of customers to help them accelerate their transformation across every line of business -- from the factory floor to smart buildings."

GE first launched Predix last August, and has since inked partnerships with companies such as Action Alerts PLUS portfolio holding Cisco (CSCO) , as well as with Intel (INTC) and wireless companies Verizon (VZ) , AT&T  (T) , Vodafone (VOD) and Sprint's (S) parent, Softbank.

Through the newly created Predix OS Alliance with Microsoft, GE expects to rake in about $15 billion in data-analystics sales by 2020, which represents roughly 7.5% of a $200 billion market, Heymann said.

Microsoft will bring its own Azure cloud to the Industrial Internet, allowing customers using machines from wind farms to jet engines share data through Microsoft applications and programs in its Office 365 suite.

"For instance, software apps running on GE Digital's Predix OS will be able to seamlessly communicate with systems running on Azure such as supply-chain management and product life-cycle management to more fully unlock and commercialize the full potential of the Industrial Internet," Heymann added.

GE shares are up roughly 25% since its Predix cloud was rolled out.

Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

Employees of TheStreet are restricted from owning individual securities.

Action Alerts PLUS, which Cramer co-manages as a charitable trust, is long GE stock.

TAGS: Investing | U.S. Equity | Technology | Industrials | Basic Materials | Transportation | Markets | Stocks

More from Transportation

How Many Forward Gears Does Ferrari Stock Have?

Bruce Kamich
May 30, 2023 1:51 PM EDT

Let's check under the hood.

Uber Picks Up a Fundamental Passenger: Should Investors Share the Ride?

Bruce Kamich
May 26, 2023 8:45 AM EDT

The stock has doubled in the past 12 months.

Catch a Ride on These Dividend-Carrying Rail Stocks

Bob Ciura
May 26, 2023 7:00 AM EDT

Let's look at the Top 3 railroad names for dividend investors.

Think the Brown Trucks Are Boring? Then That's Even More Reason to Buy

Brad Ginesin
May 24, 2023 7:00 AM EDT

Temporary bumps in the market have shifted UPS' outlook into the slow lane, but I see this transport name barreling ahead soon enough. Here's why.

CSX Looks on Track for an Upside Breakout

Bruce Kamich
May 22, 2023 8:10 AM EDT

It appears traders of the railroad's stock have become aggressive buyers rather than aggressive sellers.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 12:07 PM EDT STEPHEN GUILFOYLE

    Selling Some of This Surging AI-Related Stock

    This isn't the only name in the Stocks Under $10 p...
  • 09:48 AM EDT CHRIS VERSACE

    Latest AAP Podcast With Portillo's CEO!

    Listen in as we talk with a rising star in the Chi...
  • 03:25 PM EDT JAMES "REV SHARK" DEPORRE

    This Weekend on Real Money

    Don't Just Sit There and 'Hope' for Your Stocks, M...
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2023 TheStreet, Inc., 225 Liberty Street, 27th Floor, New York, NY 10281

Need Help? Contact Customer Service

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login