IBM announced its alliance with The Weather Company through WSI, its B2B division, to integrate real-time weather insights into business.
Improvement in operational performance and decision making will be some of the benefits of the alliance. The Weather Company, including WSI will shift its weather data services platform to the IBM Cloud and integrate its data with IBM analytics and cloud services.
“There’s an opportunity to inform all business operations and decision making with real-time actionable insight delivered securely via the cloud and extracted from all this data collected from sensors all over the planet,” said Bob Picciano, senior vice president, IBM Analytics.
Weather is responsible for an annual economic impact of nearly half a trillion dollars in the U.S. alone. WSI’s forecasting system ingests and processes data, resulting in approximately 2.2 billion unique forecast points worldwide, and averages more than 10 billion forecasts a day on active weather days.
By migrating its weather data platform to IBM Cloud, WSI will be able to accelerate the growth of cloud-based applications. Enterprise clients and industry ecosystems can integrate WSI weather data into their operations and decision-making.
IBM and WSI will enable integration of historical and real-time weather data in business operations and decision making with IBM analytics platforms such as Watson Analytics. The companies will jointly develop industry solutions for insurance, energy & utilities, retail and logistics among others.
Entrepreneurs and software developers will be able to rapidly build mobile and web apps that take advantage of WSI data combined with data from operational systems, connected devices and sensors using advanced analytics through Bluemix, IBM’s cloud application development platform.
IBM has shared the following two use cases.
WSI’s Weather Alert service, together with IBM Analytics, enables insurance providers to send policyholders text messages that alert them to impending. These insights have the potential to save insurers up to $25 per policyholder per year in hail-prone areas, or millions of dollars annually.
The difference between 90 and 95 degrees in Texas, for example, can equate to$24 million more in electricity spending per day. With IBM and WSI, utilities will be able to more accurately predict power consumption so they can avoid overproducing power, reduce service interruptions and better serve customers.
“Together, we’ll help businesses and governments transform their decisions and operations around weather fluctuation at a scale that hasn’t been possible until now,” said David Kenny, chairman and CEO of The Weather Company.