Cisco Systems CSCO and IBM IBM have announced that the two companies will partner up on Internet of Things (IoT) analytics with the hopes of using IBM’s Watson technology in collaboration with Cisco’s massive networking web.

The companies said that they will target multiple industries, including oil & gas, manufacturing, shipping, and mining to provide instantaneous data and insight. Using Watson tech and Cisco’s labyrinth of edge devices and end points, the two companies can supply a whole new level of feedback for businesses that would otherwise not have access to this type of information.

“The way we experience and interact with the physical world is being transformed by the power of cloud computing and the Internet of Things. For an oil rig in a remote location or a factory where critical decisions have to be taken immediately, uploading all data to the cloud is not always the best option… [IBM and Cisco are] helping to make these strong analytics capabilities available virtually everywhere, always,” said Harriet Green, IBM’s GM of Watson IoT.

Today’s announcement didn’t elaborate too much on many of the technical details of the partnership, but the basic premise seems to be that IBM’s analytics tools will be embedded in Cisco’s networking equipment.

(Also Read: How to Invest in the “Internet of Things”)

Both companies clearly see the Internet of Things as the next major market. Although it’s a rather loose definition, the Internet of Things typically refers to devices and systems that connect household and industrial items with electronic, software, or sensor technology.

In the household, the IoT typically manifests itself in home-automation devices like Amazon’s (AMZN) Echo speaker, which can control appliances, heating and cooling systems, and security alarms. Commercially, the IoT can transform inanimate machinery into powerful devices that provide feedback and performance data.

According to some estimates, the Internet of Things could reach a global market value of nearly $1.7 trillion by the year 2020.

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