American industrial conglomerate General Electric (GE) expects to approximately triple its software revenues to $15 billion by 2020, basing its estimates on strong results from its new digital business segment.
Under the leadership of CEO Jeff Immelt, GE aims to enhance the efficiency and productivity of its turbines, jet engines, and other industrial products through software. The company anticipates generating over $5 billion in revenue from its software-related product portfolio this year, which could exceed $15 billion by 2020. Last year, GE achieved approximately $150 billion in revenue.
The estimate was announced yesterday at GE’s annual conference “Minds and Machines” in San Francisco. Bill Ruh, the director of digital business, stated that additional revenues will primarily be generated in the industrial applications segment, as well as from the sale of GE’s cloud-based operating system called ‘Predix’.
– The goal is very ambitious, but there is also a significant opportunity available in the market, Ruh emphasized in an interview.
An example of GE’s expanded offering is the software package Digital Power Plant, designed to help utility companies save money, among other things, through more reliable service delivery and reduced maintenance costs.
