Qualcomm has taken a 7 percent ownership interest in a new Silicon Image subsidiary that will target new applications for the Internet of Things (IoT).
The new subsidiary, called Qterics, will comprise UpdateLogic (a Silicon Image acquisition) as well as Silicon Image’s software and intellectual property (IP) assets. The subsidiary is change of strategy for Silicon Image that originally planned to keep UpdateLogic as a wholly-owned subsidiary.
The change of strategy has two benefits. The first is to provide visibility and transparency to two of Silicon Image’s businesses – 60Ghz wireless and services business units – and secondly it “facilitates future partnerships to advance the Internet of Everything (IoE) ecosystem,” said Kurt Thielen, president of Qtertics in an interview with Electronics 360.
One of the goals of the arrangement is to promote AllJoyn, the open source software framework of the AllSeen Alliance, by incorporating the technology into Qterics software platform and promote it for Silicon Image’s customers. As both Qualcomm and Silicon Image are premier members of the AllSeen Alliance, they have a vested interest in seeing the standard move forward. “We recognize the value that the AllJoyn technology can bring to the IoT industry and therefore we will support and promote this initiative,” Thielen said.
“As consumer devices have gotten smarter, they also require more support,” said Bill Morelli, associate director of M2M & IoT at IHS Technology. “Qterics looks like it is designed to provide CE manufacturers with device management tools for this new generation of smart connected devices.”
Morelli said that the investment makes sense from a consumer standpoint because Silicon Image has been a longtime player in the connecting and sharing of content space and Qualcomm has been a driving force behind AllJoyn.
The investment in Qterics is the first partnership between Silicon Image and Qualcomm but with Qualcomm being a big player in the IoE space, Silicon Image considered the agreement a good fit for their common goals in furthering IoE and the AllJoyn standard.
While the possibility exists that Silicon Image may entertain other investment sources from other vendors, Qualcomm is current the only company investing in Qterics. And Silicon Image at this point has no plans to spin off Qterics instead focusing on growing the business and creating value and products for the IoT market, Thielen said.