International Business Machines Corp. (NYSE:IBM) Teams Up With AT&T Inc (NYSE:T) To Fix Leaking Water Pipes

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In the search for new growth, International Business Machines Corp. (NYSE:IBM) and AT&T Inc (NYSE:T) have found water management as a viable revenue opportunity. The companies have teamed up to help cities identify water leaks and deal with the problems before much water is lost. It is estimated that 2.1 trillion gallons of drinking water is lost in the U.S. each year through broken water mains and leaking pipes, but that could change if water managers tap into the water solutions that IBM and AT&T have figured out.

The U.S. water infrastructure has been termed as decaying with the American Society of Civil Engineers assigning the country’s infrastructure a “D” grade. In addition to the decaying water systems, the other challenge is that fixing the problems is likely to be too costly and overhauling the infrastructure may require a lot of money than the government may be willing to spend on the project. That is where International Business Machines Corp. (NYSE:IBM) and AT&T water solution seems to make plenty of sense.

Connecting water pipes to the Internet

The companies are working to connect water pipes to the Internet and data about the health of water mains and pipes can be accessed through IBM-supported software. Further than that, the water system is able to deliver alerts to water managers about an existing problem in the water system.

By keeping track of the water system performance, water managers are able to pin point leaks quickly and deal with the problem more efficiently. Additionally, cities will be able to know where they require more investments to strengthen their water systems.

The data fetched from the connected water pipes is carried to the cloud through AT&T’s wireless network and then uploaded into a software platform supported by International Business Machines Corp. (NYSE:IBM). The initiative to connect water pipes to the cloud also includes Mueller Water Products, a renowned maker of water pipes and valves.

Trial cities

The water management solution being touted by IBM and AT&T has already tried in cities like Atlanta, Los Angeles and Las Vegas with impressive results.

New revenue opportunity

If International Business Machines Corp. (NYSE:IBM) and AT&T can get cities to tap into their water management solution, the companies will be in for more new revenue streams. Both IBM and AT&T are trying to diversify their revenue sources from their current respective mainstays.

Neha Gupta

Neha Gupta has been in the financial space for over six years now. Gupta earned her MBA degree from Symbiosis Centre of Distance Learning in 2009 and her passion for finance led her to pursue Chartered Financial Analyst (CFA) course. She has successfully completed Level II of her CFA. She is a veteran in article writing, which is depicted in her numerous pieces published on SeekingAlpha, Nextiphonenews, InsiderMonkey, MarketWatch, and Techinsider. Her crisp and eloquent writing finds its best place in Researchcows, where emphasis is given on developing rich content for various websites, products, business plans, trainings, and book writing.

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