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Reliance Industries is gearing up to enter the software services business and plans to take on India's IT giants, as the energy-to-telecom conglomerate taps the growing potential of the industrial internet.
As a first step, RIL has tied up with General Electric 's industrial-internet-of things platform Predix and will create applications for itself and then sell those applications to other companies.
"We will be gradually evolving into a software and services firm," Manoj Chouthai, chief technology officer at Reliance, told ET.
"Jio is the foundation on which all of this will be leveraged and we will be building up on that. This is a venture that is evolving. GE and Reliance are trying to size up the scale of this."
The company will use Predix internally — first in oil and gas and then in its retail, telecom and healthcare businesses.
RIL is working on a blueprint for its digital services unit. It aims to firm up a plan with GE in the next six months.
As the manufacturing sector increasingly embraces digital and automation, Reliance is hoping that this tie-up will help it crack a virgin but fast developing opportunity.
The industrial-internet-of-things opportunity is likely to touch $124 billion by 2021, according to research firm IndustryARC Research.
"We are moving fast and furious into the industrial-internet-of-things. We want to build an organisation that can serve the needs of Reliance and, as the partnership with GE starts to evolve, we want to be in the position of being able to help other companies within India," Chouthai said.
Reliance's software ambitions, though a "work in progress" right now, may duplicate the strategy followed by the other industrial conglomerate GE.
GE is betting that the Predix Platform, which is the American conglomerate's core offering in the software business, will become "operating system for the industrial-internet-of-things".
GE's Predix platform is on track to generate over $7 billion in revenue this year and $15 billion by 2020. GE's partnership with Reliance is also a first for the company. The earlier tie-ups have been with telecom, technology and IT firms, including India's Tata Consultancy Services, Infosys, Tech Mahindra and L&T Infotech.
"This one is particularly different and one we consider special because it the first one that starts with the marriage of two industrial companies," said Ashish Bhandari, CEO, oil & gas, for GE South Asia.
Billionaire Mukesh Ambani led-Reliance Industries has gradually moved from being a purely manufacturing company to a services and technology firm. The conglomerate first toyed with the idea of entering the business in the 90s.
"They missed out on the IT boom to TCS and Infosys and Wipro but this gives them a shot. The industrial internet wave has just started and, given how they have grown Jio, we know that they have the ability to grow a business swiftly," said Pareekh Jain, research vice-president at IT consultancy HfS.
In GE's tie-ups with the IT services companies, the intellectual property for the applications is owned by the IT firms. That model may not work with the Reliance venture as the two companies will be working far more closely. RIL also plans to start building a dedicated team for the venture.
"What we are bringing is strong process expertise that combines the ability to have nationwide telecommunication infrastructure, secured cloud computing services and at the end we will create a viable solution for what the market will expect," Chouthai said.
As a first step, RIL has tied up with General Electric 's industrial-internet-of things platform Predix and will create applications for itself and then sell those applications to other companies.
"We will be gradually evolving into a software and services firm," Manoj Chouthai, chief technology officer at Reliance, told ET.
"Jio is the foundation on which all of this will be leveraged and we will be building up on that. This is a venture that is evolving. GE and Reliance are trying to size up the scale of this."
The company will use Predix internally — first in oil and gas and then in its retail, telecom and healthcare businesses.
RIL is working on a blueprint for its digital services unit. It aims to firm up a plan with GE in the next six months.
As the manufacturing sector increasingly embraces digital and automation, Reliance is hoping that this tie-up will help it crack a virgin but fast developing opportunity.
The industrial-internet-of-things opportunity is likely to touch $124 billion by 2021, according to research firm IndustryARC Research.
"We are moving fast and furious into the industrial-internet-of-things. We want to build an organisation that can serve the needs of Reliance and, as the partnership with GE starts to evolve, we want to be in the position of being able to help other companies within India," Chouthai said.
Reliance's software ambitions, though a "work in progress" right now, may duplicate the strategy followed by the other industrial conglomerate GE.
GE is betting that the Predix Platform, which is the American conglomerate's core offering in the software business, will become "operating system for the industrial-internet-of-things".
GE's Predix platform is on track to generate over $7 billion in revenue this year and $15 billion by 2020. GE's partnership with Reliance is also a first for the company. The earlier tie-ups have been with telecom, technology and IT firms, including India's Tata Consultancy Services, Infosys, Tech Mahindra and L&T Infotech.
"This one is particularly different and one we consider special because it the first one that starts with the marriage of two industrial companies," said Ashish Bhandari, CEO, oil & gas, for GE South Asia.
Billionaire Mukesh Ambani led-Reliance Industries has gradually moved from being a purely manufacturing company to a services and technology firm. The conglomerate first toyed with the idea of entering the business in the 90s.
"They missed out on the IT boom to TCS and Infosys and Wipro but this gives them a shot. The industrial internet wave has just started and, given how they have grown Jio, we know that they have the ability to grow a business swiftly," said Pareekh Jain, research vice-president at IT consultancy HfS.
In GE's tie-ups with the IT services companies, the intellectual property for the applications is owned by the IT firms. That model may not work with the Reliance venture as the two companies will be working far more closely. RIL also plans to start building a dedicated team for the venture.
"What we are bringing is strong process expertise that combines the ability to have nationwide telecommunication infrastructure, secured cloud computing services and at the end we will create a viable solution for what the market will expect," Chouthai said.
