An announcement has been made from IBM that it has bought the Weather Company. Everything is being bought by the company apart from the TV network. The digit assets of the Weather Company are also being taken by IBM which include weather.com, the uber-popular mobile app of the Weather Channel.
Big data can be a jargon but it is the bread and butter of IBM and it is present in large amount with the Weather Company. Weather data looks to be insignificant and trivial but the fact is that it is not like that. Such information is the one that is looked up by most of the consumers and businesses as they rely on that. For the maximization of profits, large number of businesses are dependent on the data of weather.
Depending on the weather forecasts, the prediction of the supply increase for the medicines of allergy s done by the pharmacies while the focus of agriculture companies is on the weather data so that the crop yields may be maximized.
An example of a Climate Corp. Monsanto spent around $1 billion on the purchase of the weather data during 2013. If a business is successful in getting access to the appropriate data, then it could result in the enhancement of the sales of millions of dollars.
Many companies that are the part of various industries have been able to get the licenses of the data from the business unit of the Weather Company known as WSI. The industries which are making their profits include aviation. Media, insurance, energy and public utilities. Apple and Google are also provided the weather data by the company and the company also have the biggest commercial meteorological database around the globe. It also possesses the facilities like collection of satellite, radar and more information related to the weather.
WSI says it processes 100 gigabytes of weather information each day.
Weather Company is under the ownership of the 2 private equity firms and NBC Universal division of Comcast. The company was acquired in 2008 for $3.5 billion. It had to face the low rating issue for its cable channel and now the latest digital strategy has been devised and announced.
NBU Universal, Brain Capital and Blackstone will continue to keep the ownership of the Weather Channel TV network. It will be operating as a standalone business which will get the license of weather forecast data from IBM.
Head of the Weather Channel, Dave Shull said that the company hopes to see the better business of the television in the future and it will be one of the most reliable sources for the information about weather.