IBM Joins Siemens Snaring $108 Billion as Cities Get Smart
Comment of the Day

December 06 2011

Commentary by Eoin Treacy

IBM Joins Siemens Snaring $108 Billion as Cities Get Smart

This article Rachael King for Bloomberg may be of interest to other subscribers. Here is a section:
The Memphis police force, which covers 315 square miles with more than 2,000 officers, responded to about 1 million calls last year. With such heavy volume, the department can go from call to call without necessarily seeing the bigger picture, Janikowski said.

Siemens, based in Munich, created a division called infrastructure and cities this year to help it win contracts to improve transport networks and provide electronics for buildings. Chief Executive Officer Peter Loescher aims to boost revenue from municipalities to get him closer to a goal of achieving 100 billion euros ($134 billion) in sales. The company will have sales of $75.9 billion euros in fiscal 2012, which ends in September, analysts surveyed by Bloomberg predict.

In Memphis, the police department has integrated databases from various agencies into a system called Kiosk to help in investigations.

Eoin Treacy's view As urban populations become larger, and population density increases the challenges of building relatively harmonious communities becomes increasingly dependent on data gathering, management and interpretation.

IBM continues to trend consistently higher and posted a new all time high this week. A sustained move below $160 would be required to break the progression of higher major reaction lows and question medium-term upside potential.

Siemens yields 4% and in common with many industrially oriented shares, pulled back sharply in July in a major trend inconsistency. It has steadied over the last few months and continues to hold above the September low. A sustained move below €66.50 would be needed to question current scope for at least a continued reversion towards the mean.

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