Tokyo, Japan - July 28, 2016
Yokogawa Electric Corporation announces that it has invested in FogHorn Systems, Inc., a Silicon Valley startup that is a leading developer of fog computing technology. Through its investment in this company, Yokogawa aims to foster their development of fog computing technology. In so doing, Yokogawa hopes to expand the range of solutions that it provides.
Due to the widening use of cloud computing services and the huge number of devices that have access to cloud resources, there is a growing concern over issues such as network congestion and data processing delays. Fog computing* is gaining traction as a technology solution to this problem.
FogHorn Systems, a pioneer in the development of software for fog computing applications with outstanding expertise in this field, has attracted the interest of various companies that are promoting IoT. Led by March Capital and GE Ventures, the company has succeeded in raising $12 million in funding from multiple investors, including Yokogawa, Robert Bosch Venture Capital GmbH, and Darling Ventures. There is also a group of investors who invested in the company prior to this round of fundraising. Yokogawa's stake in the company is worth $900,000.
Yokogawa offers a wide range of control solutions that help its customers improve the safety and efficiency of their operations and make the most effective use of their assets. These solutions include field instruments, control systems, manufacturing execution systems (MES), and management information systems. Industrial IoT (IIoT) technology is making rapid inroads in the control field, and it is expected that fog computing's enabling of real-time and distributed processing in edge computing applications will significantly accelerate its adoption.
Through this investment in FogHorn Systems, Yokogawa will gain access to the latest fog computing technologies and will also make available its knowledge and expertise in process control and plant operations that will help this company further refine its fog computing technology. Yokogawa aims to make use of fog computing to strengthen the solutions that it provides.
Yokogawa has drawn up a long-term business framework and formulated a vision statement that reads, Through "Process Co-Innovation," Yokogawa creates new value with our clients for a brighter future. "Process Co-Innovation" is a concept for an automation business that will utilize all of Yokogawa's measurement, control and information technologies. According to this statement, Yokogawa will seek not only to optimize production processes but also the flow of material and information within and between companies, including their value and supply chains. This concept covers all solutions of Yokogawa, which is committed to working with customers to create value. The effective use of IIoT is key to "Process Co-Innovation."
Tsuyoshi Abe, a Yokogawa vice president and head of the company's Marketing Headquarters, had the following to say about this investment: "Highly reliable and stable communications are an essential requirement in manufacturing and many other fields. Fog computing is a breakthrough that helps to enhance the use of cloud resources. It is also expected to provide Yokogawa many more opportunities to utilize IIoT in its control business. Based on its corporate brand slogan of 'Co-innovating tomorrow,' Yokogawa will utilize FogHorn's technology to develop new solutions and create new value in collaboration with its customers and partners.
* Fog computing: An architectural concept for the realization of edge intelligence and the suppression of communications with the cloud by establishing a "fog" distributed computing layer between the cloud and devices in the field. Fog computing eliminates communications delays and fluctuations by locating the processing of certain data near the field devices that generate the data and sending only essential information to the cloud. As such, there are high expectations that this technology will lead to a number of new IoT applications.
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About Yokogawa
Yokogawa's global network of 92 companies spans 59 countries. Founded in 1915, the US$3.7 billion company engages in cutting-edge research and innovation. Yokogawa is active in the industrial automation and control (IA), test and measurement, and aviation and other businesses segments. The IA segment plays a vital role in a wide range of industries including oil, chemicals, natural gas, power, iron and steel, pulp and paper, pharmaceuticals, and food. For more information about Yokogawa, please visit www.yokogawa.com.
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