IBM ties up with Honeywell

CALIFORNIA, USA: International Business Machines Corp plans to work with manufacturing conglomerate Honeywell International Inc to develop technologies that make office buildings and retail stores more energy efficient.

IBM said on Wednesday that under the partnership some of its monitoring and energy management software will be integrated with those of Honeywell's Tridium unit, which specializes in controlling devices inside commercial buildings.

The move is part of IBM's "smarter planet" strategy, which aims to improve efficiency of everything from power grids to transportation systems, by using software as well as analytical and predictive technology. It has a similar partnership with Johnson Controls Inc.

There are more than 5 million commercial structures in the U.S. alone, representing about $200 billion in annual energy costs, IBM said, adding that more than $20 billion could be cut from that bill with just a 10 percent improvement in efficiency.

IBM said a 30 percent improvement will be "easily achievable" through its partnerships with Honeywell and Johnson.

"We can really help companies with their bottom line. Over the past decade we've seen a lot of work done to make buildings more efficient. But this takes it to a whole new level," said David Bartlett, vice president of industry solution in IBM's software division.

He said IBM's key contribution to the partnership was its ability to analyze massive amounts of data. IBM's IT services expertise will also help companies using various electronics gadgets and networks monitor them under a single system.

In addition to boosting the efficient use of heat, water, sewage and electricity in buildings, the jointly developed technology is expected to help detect and prevent problems in the building's networks and devices, IBM said.

For example, when a refrigeration unit inside a retail store is broken, repairs would be dispatched automatically, instead of having to wait for someone to notice the ice cream is melting.

IBM, which bought PwC Consulting from PricewaterhouseCoopers in 2002 and sold its personal computer business to Lenovo Group in 2005, has been shifting away from commoditized hardware products, focusing instead of profitable software and services.