GE Launches Stand‑Alone Industrial IoT Division to Drive Digital Growth

GE is establishing a dedicated industrial IoT business that will combine its GE Digital assets, including the Predix platform, with GE Power’s digital and grid software units. The new entity, rebranded and equipped with its own equity structure and board, is projected to generate $1.2 billion in annual software revenue, giving the company a clear, revenue‑targeted focus.

GE Digital, headquartered in San Ramon, California, has operated with a degree of autonomy under CEO Bill Ruh. In November 2017, CEO John Flannery announced a plan to cut GE Digital’s expenses by more than 25% of its $400 million spend, underscoring the need for a sharper strategy. Following Ruh’s departure, the chief commercial officer will serve as interim CEO as GE searches for a permanent replacement.

In recent developments, GE has begun divesting parts of its former GE Digital portfolio. The conglomerate sold 90% of its stake in ServiceMax—a field‑service management platform—to Silver Lake Partners, a private‑equity firm. GE originally acquired ServiceMax in 2016 for $915 million; the financial terms of the sale were not disclosed. GE also sold its remaining shares in Pivotal, the cloud‑software firm, after holding 9.4 million shares.

By creating a standalone digital business unit, GE retains flexibility: the unit could be sold or partially divested within a year, depending on its performance. Chris Kocher, co‑founder of Grey Heron, noted that regulatory approvals are needed for any future transaction, with a potential closing in Q1 of next year.

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