Tech Giants Enter the Genomics Arena: IBM, Google, Apple, and Facebook Vie for Dominance in the Gene Market

IBM is the world’s largest information technology and business solutions company, headquartered in New York. Founded by Thomas Watson in 1924, the company initially focused on commercial typewriters, later transitioning to word processors, and gradually grew into a global technology giant.

IBM’s initial foray into the healthcare sector actually dates back to the 1940s, with its earliest medical initiative being the development of remotely controlled typewriter keyboards for individuals with disabilities.

Returning to the main topic, IBM actually began its strategic layout in the genetics field as early as 2001. In June 2010, IBM announced that it had successfully embedded 64-bit Java(R) technology into its AIX(R) UNIX operating system. This signifies a qualitative leap in the performance of the AIX system, far surpassing systems such as Sun Solaris and Hewlett-Packard HP-UX. More importantly, this technology demonstrated its application potential in the life sciences sector, serving as a retrieval tool for human genomic data.

In September of the following year, IBM’s strong heritage in the IT sector attracted two biotechnology companies, Celera Genomics and Applied Biosystems. Both companies selected IBM’s supercomputers to support their drug discovery and knowledge-based business operations. Applied Biosystems is also expected to deepen its collaboration with IBM, leveraging IBM’s advanced information technology to accelerate its drug discovery and potential development processes. Specific initiatives include joint research on computational solutions, development of new drug targets, and collaborative promotion of novel life science solutions.

In July 2010, IBM announced a collaboration with the University of Missouri–Kansas City (MU) to leverage IBM’s high-performance computing platform in establishing MU’s first regional-level genomics research cloud environment. This cloud environment supports access via both public and private networks, offering scalable storage and services. The IBM-MU Genomics Cloud is poised to facilitate broad sharing and collaborative scientific discovery across diverse fields, thereby advancing MU’s bioinformatics research initiatives.

In the early years, first-generation sequencing technology suffered from numerous limitations. In particular, the exorbitant cost of sequencing hindered its widespread adoption. During this period, IBM primarily leveraged its IT capabilities to provide data service support to research institutions. As IBM gradually gained familiarity with the genomics field, it began to marshal its resources for major strategic initiatives.

In 2011, IBM collaborated with Roche, Arizona State University, and Columbia University to develop next-generation DNA sequencing technologies. IBM played a pivotal role in this joint initiative by developing DNA transistor technology, which controls the slow passage of DNA molecules through nanopores in silicon chips, thereby facilitating the decoding of their base sequences as they traverse the nanopores.

Subsequently, IBM has leveraged its inherent advantages in the IT sector to frequently collaborate with gene sequencing and bioinformatics companies, gradually expanding its footprint in the genomics field.

In April 2013, IBM partnered with CLC Bio to provide customers with a comprehensive next-generation sequencing (NGS) data analysis solution. CLC Bio, a Danish bioinformatics analysis and visualization platform, leverages world-leading algorithms to develop and deliver a broad range of world-class bioinformatics solutions. The company was acquired by QIAGEN in October 2013.

In March 2014, IBM announced a collaboration with the New York Genome Center to advance the application of genomics in medicine. Leveraging IBM’s extensive repository of genomic data and related literature, the initiative will provide clinicians with more comprehensive information to help analyze and interpret patients’ genetic data, thereby enabling the development of more personalized treatment plans. Additionally, it will assist scientists in understanding the differences in gene sequences between tumors and normal cells. This marks the first application of Watson in genomic research.

After 2014, the cost of gene sequencing dropped significantly. IBM recognized the potential applications of genomics in clinical medicine. It must be acknowledged that IBM is a savvy company, having embarked on the exploration of clinical applications of genomics since 2014.

In October 2014, IBM announced a collaboration with the Cleveland Clinic to advance the application of genomics in medicine. With IBM’s technological support, the Cleveland Clinic will unlock the potential of genomic sequencing and medical data in clinical practice, helping oncologists discover new cancer treatment regimens and providing patients with more therapeutic options. In 2015, it further partnered with Boston Children’s Hospital to advance research on rare pediatric diseases.

In October 2016, IBM partnered with Quest Diagnostics, the world’s leading clinical diagnostics company, to launch Watson for Genomics, a precision medicine initiative integrating high-performance computing with tumor genomic sequencing. The aim is to assist oncologists in the United States in advancing personalized healthcare. Watson for Genomics will screen anonymized patient data and provide actionable insights to scientific organizations worldwide, enabling them to advance research and uncover hidden patterns behind drug-resistant cancers. Memorial Sloan Kettering Cancer Center (MSK) will supply data support to Watson, thereby offering cancer patients more precision treatment options.

Quest Diagnostics is a leader in the fields of gene sequencing and oncology diagnostics, serving more than half of the physicians and hospitals nationwide and capturing 70% of the U.S. cancer care market. This move marks the first nationwide deployment of Watson for Genomics.

During the 2017 J.P. Morgan Healthcare Conference, IBM formed another alliance with global sequencing giant Illumina. The two companies will collaborate to standardize the interpretation of genomic data. The IBM-Illumina partnership offers general hospitals a comprehensive sequencing solution: the sequencing panel covers only 170 cancer-related genes, encompassing all targets that are either approved or currently in clinical trials. Upon receiving the data, IBM Watson performs rapid analysis and informs hospitals and patients about the types of genetic mutations and corresponding therapeutic drugs. Steve Harvey, Vice President of Watson Health, stated that the aim of the alliance is to enable ordinary hospitals to conduct DNA sequencing, which could potentially benefit 20,000 Americans.

All of the above represent strategic layouts achieved through partnerships, but this does not imply that IBM lacks the capacity for independent exploration. In August 2016, IBM announced an ongoing research project designed to assist physicians in the early detection of cancer and real-time monitoring of treatment efficacy. This move marked IBM’s formal entry into the liquid biopsy sector. Liquid biopsy is known to be a billion-dollar market, already populated by industry giants such as Illumina. Why, then, would an IT company enter this market with such prominence? The company stated that IBM possesses extensive expertise in microelectronics and nanotechnology, and it believes this is the right strategic direction.

In fact, this was not IBM’s first foray into biotechnology. As early as 2006, IBM announced that its researchers had discovered patterns of DNA sharing. In 2008, IBM also collaborated with Mars on a project to sequence the cocoa genome.

From a macro perspective, IBM has perfectly exemplified the notion that a technology giant without forays into biotechnology is not a truly comprehensive information technology company. Given IBM’s clear IT identity, the company leveraged its inherent strengths and the IT needs of biopharmaceutical firms to first familiarize itself with the market and establish a foothold through collaborations. Although IBM may not hold a dominant position in biotechnology (BT) per se, its robust IT capabilities provide a protective umbrella, making its entry into the BT sector considerably easier than for other newcomers. IBM’s relatively smooth expansion into the genomics field is attributable not only to the inevitable convergence of IT and BT but also to the company’s intrinsic culture of exploration and its keen market acumen.

With the explosive growth of data in the life sciences field, how to timely acquire, rapidly analyze, and securely store these massive datasets has become an urgent challenge for researchers. Unlike IBM, Intel has chosen to focus its efforts on the field of bioinformatics.

In late October 2015, BGI Group partnered with Intel and Alibaba to jointly create the precision medicine cloud platform—BGI Online. It is a simple, efficient, and secure genomic data analysis platform designed to provide genomics data and applications to users such as research institutions, pharmaceutical companies, and clinical laboratories, thereby meeting industry needs. Users can access their own data on BGI Online to obtain standard analysis results, customize personalized data analysis solutions, and share data and findings with other authorized users.

On November 3, 2016, the three companies jointly released a new version of BGI Online. BGI Genomics stated that BGI Online would attract third-party application developers and data analysis service providers to integrate their applications into the public platform, ultimately creating an ecosystem akin to Apple’s App Store.

In November 2016, Intel partnered with the Broad Institute to sign a collaboration agreement valued at $25 million, under which the two organizations will launch a genomic data integration initiative. The agreement is dedicated to integrating existing genomic data from private, public, and cloud platforms over the next five years to accelerate research in the life sciences.

This collaboration reflects the growing pressure that the expanding scale of bioinformatics data places on research institutions. The Broad Institute aims to collaborate with Intel to integrate its internal data with external datasets, thereby creating a more unified bioinformatics platform.

Intel will customize suitable hardware infrastructure for the Broad Institute’s genomic analysis tool, GATK, and establish a hardware environment that includes public cloud platforms to help alleviate the pressures the Broad faces when utilizing and analyzing genomic data from diverse sources. Furthermore, with Intel’s assistance, the Broad Institute will refactor existing software tools, such as its workflow execution engine Cromwell and GenomicsDB, to ensure their compatibility with Intel-based computing platforms. This software optimization will further enhance the Institute’s data processing capabilities. Researchers believe that if this initiative is successfully implemented, it will bring about significant transformations in drug development and clinical diagnostics. Both parties also aim to build a genomic data-sharing platform for various stakeholders, including biopharmaceutical companies, academic institutions, and health insurance providers.

On June 9, 2016, Intel, together with its partners, launched the “Intel BioIT Partners” program to jointly promote the innovation and application of computing technologies in the life sciences and healthcare sectors. Meanwhile, Intel signed strategic cooperation memoranda of understanding with Shanghai Jiao Tong University, Shanghai Children’s Hospital, The University of Hong Kong, Beijing Novogene Bioinformatics Technology Co., Ltd., and Beijing Rongzhi Lian Technology Co., Ltd., to collaboratively advance the implementation and practice of innovative services such as precision diagnostics and disease prevention.

Intel is an open-source contributor to genomics code. It optimizes top-tier code to ensure the efficient execution of genomics processing. Intel’s most significant contribution has been substantially accelerating genomic analysis, markedly reducing sequencing and processing times through hardware and system solutions.

Apple has amassed a large user base in the mobile device sector; if even 5% of these users were to convert, it would represent a massive market in any industry. Illumina is well aware of this.

In the fall of 2009, Jay Flatley, then CEO of whole-genome sequencing company Illumina, announced the development of a mobile application called MyGenome for the iPhone, which would allow users to access their whole-genome sequencing data on mobile devices. At the time, however, it remained merely a conceptual product. Flatley presented this concept through a series of slides: “Ultimately, we believe that data will reside on mobile devices or in the cloud. We view iPhone-type devices as the ultimate repository for such data.”

Four years later, MyGenome finally arrived. In April 2012, Illumina announced the launch of the MyGenome app for iPad. The application helps users explore a complete human genome and view reports on significant genetic variants through a simple, intuitive interface designed for genetic data exploration and educational learning.

In March 2016, alongside the announcement of the CareKit project, Apple also unveiled the ResearchKit initiative. Built on the 23andMe platform, ResearchKit may eventually facilitate the sharing of users’ genetic data. Furthermore, Apple has incorporated common medical sequencing projects into the framework. To utilize this platform, users are first required to provide saliva samples; the resulting genetic data is then stored in ResearchKit’s cloud computing infrastructure. Hospitals and other researchers can connect to the ResearchKit platform to access large-scale study cohorts, thereby streamlining the collection of primary data. Numerous applications developed by research institutions are already available on ResearchKit, yielding significant results. For instance, mPower, jointly launched by the University of Rochester and Sage Bionetworks, assesses the status of Parkinson’s disease through mini-tests, simple questionnaires, and motor tasks involving hand and foot movements. To date, more than 10,000 participants have joined the study, marking it as the largest clinical study on Parkinson’s disease in history.

“ResearchKit has been met with an overwhelmingly positive response. Almost overnight, numerous ResearchKit researchers have become part of the largest cohort in history, enabling investigators to access extensive profiles and uncover findings previously deemed impossible.” Apple COO Jeff Williams stated, “Medical researchers around the world can leverage the iPhone to transform our understanding of complex diseases; the opportunities for medical research are limitless.”

“This new technology provides researchers with the key to integrating genetics,” said Anne Wojcicki, CEO of 23andMe. “This will enable broader research; combining our genetics platform with ResearchKit will advance disease research.”

Current CEO Tim Cook has repeatedly and explicitly stated that the healthcare sector represents a “massive” opportunity for Apple. The partnership with IBM to develop the Watson Health cloud platform through health and medical big data collaboration, engagements with healthcare institutions, and the assembly of a world-class medical technology team currently in preparation all underscore Apple’s ambition and aspirations in the healthcare domain. In terms of influence, technology, and resources, Apple is indeed the premier choice for conducting population health data research.

Facebook is following a similar path to Apple. Zuckerberg’s strategic moves in the healthcare sector go far beyond mere philanthropy.

In March 2015, Facebook launched “Genes For Good,” a research-based application similar to ResearchKit, which leverages the Facebook platform to recruit volunteers.

Developed by researchers at the University of Michigan, this project aims to encourage user engagement in genetic testing. Participants can join the “Genes for Good” study, answer health-related questions, and review summaries of their health information. This ongoing research is designed to help individuals understand their genetic history and compare their daily health habits with those of other participants.

It is reported that the project has accumulated over 8,000 participants to date, but fewer than 4,000 have been deemed eligible. Moving forward, the company plans to streamline the qualification review process. Based on its pilot initiative in Michigan, Facebook may also expand this project.

For Microsoft, cloud services and mobile initiatives have always been priority business areas. In 2016, Microsoft spent approximately $8.9 billion on cloud-related capital expenditures, surpassing Amazon’s $6.8 billion. Having shifted its strategic direction, Microsoft is unlikely to miss this opportunity.

In February 2016, Microsoft announced a partnership with Spiral Genetics to jointly deploy and develop the BioGraph™ Suite, a next-generation sequencing data management and analysis tool, on the Microsoft Cloud platform. Based on the BioGraph™ Suite, users can access computing resources from anywhere in the world while enjoying enterprise-grade data security. Meanwhile, Spiral Genetics will also help enhance the convenience and flexibility of the BioGraph™ Suite, enabling clinicians and researchers to access and share data more easily.

In July 2009, Microsoft launched the Microsoft Biology Initiative. This initiative aims to introduce new technologies and tools to the fields of bioinformatics and biology. The project consists of two main components: the Microsoft Biology Foundation (MBF) and the Microsoft Biology Tools (MBT). MBF is a language-agnostic bioinformatics toolkit, while MBT is a suite of tools designed to help researchers in biology and bioinformatics make scientific discoveries more efficiently.

In addition to differentiating itself in the cloud services industry, Microsoft has also begun to “play” with genes. The company is also seeking differentiation in storage technology, where gene technology once again plays a key role.

In July 2016, Microsoft announced a key breakthrough in its DNA storage technology. The company successfully wrote ten times more data into millions of DNA strands than previously achieved, albeit at a significant cost. With advances in biotechnology driving down the costs of DNA reading and writing tools, Microsoft sees an opportunity to leverage research outcomes from the biotech industry to innovate storage technologies. Karin Strauss, the project’s lead researcher, estimated that DNA amounting to the volume of a shoebox could store the data equivalent to 100 large-scale data centers. Microsoft aims to develop an end-to-end archival information system based on DNA. While Microsoft did not disclose the costs incurred in this DNA data storage project, given the precedent of dramatic short-term reductions in gene sequencing costs, there is reason to be optimistic about similar declines in the cost of DNA synthesis (writing).

Storing data in genes is not enough; Microsoft also aims to tackle cancer using “DNA + computer” technology. In September 2016, Microsoft announced an ambitious plan to leverage computer science with the goal of curing cancer within ten years. This initiative encompasses numerous large-scale projects, among which one of the most intriguing is the development of ultra-small DNA computers capable of entering the human body, monitoring cancer cells, and reprogramming them into healthy cells. To ensure the success of this endeavor, Microsoft is not only actively exploring advancements in electronics but has also assembled biologists and computer scientists from around the world with expertise in various aspects of cancer research.

Of course, as an IT company, Microsoft has also been committed to accelerating and optimizing computational and analytical tools for genomic data. In October 2016, Microsoft launched new algorithms for the Burrows-Wheeler Aligner (BWA) and a new version of the Genome Analysis Toolkit (GATK). Compared with previous versions, GATK’s computational efficiency was improved sevenfold. For patients with critical rare diseases, the 24 hours saved hold significant importance.

Microsoft’s heavy investment in DNA data storage research demonstrates its remarkable tenacity. Judging by its current strategic layout, Microsoft is primarily focused on cloud computing and data services, with its foray into genomics reflecting a distinctly programmer-centric approach.

Google is likely the most bullish on gene technology among these companies. Unlike IBM’s partnership strategy, Google has primarily adopted an investment approach. In the healthcare sector, Google has invested in a total of 41 companies, seven of which are in the genomics field.

The first investment was naturally made in the company founded by his then-wife (now ex-wife). In May 2007, Google invested in 23andMe, a pioneer in consumer genetic testing. The company offers fully personalized DNA testing services: customers need only mail in a saliva sample and pay $99 to undergo testing. Results are available within four to six weeks and can be accessed online. The final test report covers more than 250 health-related traits, and even includes information on genealogy, medical history, genetic characteristics, and predictions of drug responses. 23andMe also introduced a community model, allowing customers to form unique circles based on their genetic data and link their personalized profiles with one another.

Google is highly optimistic about life science technologies in genetic research, and Google Ventures is even more bullish on the potential of genetic technology in the field of cancer.

In October 2011, Google announced its investment in the cancer detection company Foundation Medicine. Foundation Medicine is a company that provides comprehensive genomic profiling and analysis for cancer, ushering “personalized medicine” into a new realm by enabling physicians to devise targeted cancer treatment plans based on patients’ genetic information. Steve Jobs once utilized this service; although it did not save his life, he firmly believed that this endeavor held profound value. Google holds a 4% stake in Foundation Medicine, whose major shareholders also include top-tier gene sequencing companies such as Roche.

At the 2016 J.P. Morgan Healthcare Conference, Illumina announced the establishment of Grail, a subsidiary focused on blood-based cancer detection, with co-investors including ARCH Venture Partners and Google Ventures. Grail primarily engages in cancer screening through simple blood tests. Leveraging Illumina’s sequencing technology as its technical foundation, Grail conducts pan-cancer screening by directly measuring circulating nucleic acids in the blood.

Notably, the investors also include Bill Gates, Bezos Expeditions, and Sutter Hill Ventures. Grail plans to launch a product in 2019 capable of early detection for multiple types of cancer, priced under $1,000. The aim is to screen asymptomatic patients so that cancerous changes can be detected at the earliest stage, when cure rates are highest.

Not only that, but Google also believes that genetic technology holds the key to curing all diseases. In July 2013, Google invested in SynapDx, a pioneer in autism detection. Research has shown that early intervention can significantly improve outcomes for individuals with autism. Stan Lapidus, CEO of SynapDx, believes his company will be able to optimize treatment in the field of autism because, previously, doctors relied on external behavioral observations for diagnosis, which was prone to misdiagnosis and lacked solid scientific basis. SynapDx aims to provide robust “scientific evidence” for autism through blood-based genetic testing. By combining blood tests, gene activity profiling, and advanced bioinformatics technologies, SynapDx seeks to enable parents and physicians to diagnose children with autism faster and earlier than current methods allow, thereby increasing the likelihood of successful intervention.

In October 2016, Google partnered with ARCH Venture Partners to jointly invest in the emerging life sciences research company Genomics Medicine Ireland (GMI). Reportedly established in Ireland in 2015, GMI was founded by a team comprising life science entrepreneurs, investors, and researchers. The company is developing a human genomic data analysis platform to better understand the role of genes in diseases and rare disorders, with the aim of devising novel prevention and treatment strategies.

Google’s foray into the field of genomic data dates back to 2011. In October 2011, Google invested in two companies related to genomics: one was Foundation Medicine, mentioned earlier, and the other was DNAnexus, a startup dedicated to building a cloud-based DNA database. Furthermore, Google partnered with DNAnexus to create a massive open-access DNA database and jointly assumed management of data from the National Center for Biotechnology Information (NCBI), a federal agency. These data were integrated into DNAnexus’s historical DNA information archives and stored on Google’s cloud computing servers, representing the largest third-party dataset hosted on Google’s cloud platform. Access to this resource is provided free of charge to medical researchers.

In March 2014, Google launched the Google Genomics project, allowing users to store human genomic data in the cloud for an annual fee of just $25. This marked Google’s first proprietary product as it entered the DNA era. Leveraging Google’s cloud infrastructure, the platform provides application programming interfaces (APIs) that enable the storage, processing, analysis, and sharing of DNA sequences. By connecting and comparing thousands—soon to be millions—of genomes, Google aims to drive further medical discoveries over the next decade. David Glazer, the software engineer leading the project, stated, “Our opportunity lies in leveraging breakthroughs in data technology to help facilitate this transformation.”

“Google Genomics” cloud service is designed to help university laboratories and hospitals store patients’ or research subjects’ genomic data in the cloud. The service aims to “explore interactions among genetic variations,” enabling researchers to access millions of genomic datasets and perform comparative analyses with ease.

Deniz Kural, CEO of Seven Bridges Genomics, stated that Google Genomics could potentially revolutionize the diagnosis and treatment of cancer in the future. By simply matching patients’ genomic data with entries in a database, physicians would be able to identify the most suitable medications.

Of course, Google is not the only company working on this: Amazon and two other companies are close behind. As of autumn 2014, Google Genomics had accumulated at least 3,500 genomes, with more coming from private projects.

In July 2014, Google X Lab launched the Baseline Study project, extensively collecting human genomic samples and leveraging big data to synthesize a genetic map of healthy humans, thereby laying the groundwork for early disease detection and treatment.

Leverage Google Cloud Platform to store, process, and share genomic datasets. Compared with current practices, this approach eliminates much of the sequencing time, while enabling physicians to obtain higher-quality sequencing results and make better-informed personalized clinical decisions.

Not only is Google deeply interested in genetic testing technologies, but it also holds strong interest in gene editing. CRISPR is a powerful “genome editing” technology that can trim, cut, replace, or add sequences to an organism’s DNA. Google believes that “CRISPR is one of the most exciting areas of research in the life sciences market.” This technology has the potential to cure intractable genetic diseases.

In December 2010, Google invested in the gene therapy company iPierian. iPierian is a biotechnology startup that leverages cellular reprogramming technologies to treat diseases by modifying genes. The company specializes in tackling intractable conditions such as Parkinson’s disease, spinal muscular atrophy, and amyotrophic lateral sclerosis (ALS), while also utilizing stem cells for novel drug development. Its leadership in the technology sector will accelerate the development of new therapies, thereby facilitating the application of induced pluripotent stem (iPS) cells to patients with difficult-to-treat diseases.

A bird’s-eye view of Google’s genetic map, covering hotspots such as cancer, consumer genomics, and genetic data, with a brief mention of gene editing. The “Most Thoughtful Award” undoubtedly goes to you!

Although the aforementioned companies have adopted different strategic approaches, it is evident that each is leveraging its inherent advantages to progressively deepen its market presence. Consumer-focused companies like Apple and Facebook tend to expand from the consumer (C-end) to the business (B-end) sector, whereas IT-centric giants such as IBM, Intel, and Microsoft typically enter the market through their core competencies in cloud and data services. Regardless of the chosen path, it is clear that major tech giants are vying for a foothold in the genomics market. Beyond those mentioned, other technology companies, including Amazon and Philips, are also making strategic moves in this space.

Nowadays, genetic testing has gradually matured from both technological and market perspectives. Meanwhile, people are also contemplating the extended applications following gene sequencing, with sectors such as insurance, health management, clinical practice, and pharmaceuticals increasingly interacting with the genomics field. It can be said that gene sequencing is no longer merely a technology but an entire industry. Although these tech giants are not biotechnology companies, they demonstrated keen strategic foresight by laying their groundwork in this sector many years ago. The entry of such tech giants—possessing both the capability to pioneer new business ventures and distinct corporate identities—into the genomics domain is bound to spark new inspiration and innovation.