GE and Google entered into a enviro-matrimony in the US today. Business reasons can create strange matrimonies and bedmates. The two monoliths who have not worked in the past, have different work cultures, business rules and revenue models, this new partnership could just about change the way we deal with energy in the future.
This partnership comes on the wake of GE's shares plunging to their 5 year lows with investors perception of GE as a financing company. Jeff's Immelts (GE's CEO) move may just change that perception back to GE's image as a strong Old Economy Colossus with a PHD in world technology.
The deal combines each company's strengths: GE will make the hardware -- from wind turbines to metering switches, and Google will make the software -- applying network technologies to the grid.
Schmidt at the press release (Google's CEO) used plug-in hybrids to illustrate the needs to improve U.S. electric resources. More electric cars will require more capacity, which GE will provide, and the intelligence needed by the grid to tap charged car batteries when they're parked at night would come from Google.
Scmidt and Immelt are expected to announce joint efforts to promote and develop what insiders are calling the "21st Century Grid" - technology that will computerize electricity transmission in the US so users and generators can optimize energy use.
On substance, the world might just get to see a merger of Google's infinite BOTS traversing through seas of electric atoms in GE's turbines. This matrimony is exciting, as it can show how GE with a track record of paying dividends for over a hundred years is willing and eager for a technology-tie up with Google which is less than 2 decades old.
So will the honeymoon be called Geoogle.........
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