Cisco Systems, Inc. (NASDAQ:CSCO) has been making moves to get ready for the technological revolution. The company specializes in networking hardware and the recent surge in the applications of interconnectivity can be highly profitable for the company. As per recent figures, the company makes $50 billion annually through connecting devices to the internet and to one another. Cisco expects that within the next five years, the number of connected devices would double to reach 50 billion.
Recently, the company has made three big moves towards the Internet of Things. These position the company strategically to make the most of the emerging industry. Cisco currently has $1 billion invested in products and solutions in the IoT market. Irving Tan, the company’s president in Asia Pacific and Japan, stated that Cisco has another $1 billion lined up for investment by 2017. He indicated that these investments are targeted at emerging companies and upgrading the capabilities of Cisco.
Cisco’s corporate development VP, Derek Idemoto, stated at a conference that his company is investing in 80 portfolio companies and 35 funds targeting the IoT market. Additionally, the company is using part of this investment to assist developers and smaller companies around the world. This is being done with the help of innovation centers and startup-accelerators, operated by Cisco. Through this the company aims to be the first to get its hands on emerging technologies and incorporate them with its own hardware.
Finally, the company is also aiming to cover areas of IoT where it lags behind other companies. For example, Cisco believes that $7.3 trillion from the IoT market would be generated by data analytics solution. Unfortunately, the lead in this area has been taken by IBM and Oracle. To overcome the problem, the company has launched its “Connected Analytics for IoT”, which is integrating analytics capabilities to its current hardware.
Cisco Systems, Inc. (NASDAQ:CSCO) closed at $28.48, gaining 2.02% on April 20. The corporation has 5.10 billion shares being traded in the market, with a 52-week range of $22.43-$30.31.