Why did Cisco spend $1.4 billion on Jasper Technologies?
- 05 February, 2016 06:12
Chuck Robbins - CEO, Cisco
Cisco has unveiled plans to acquire Jasper Technologies, a cloud-based Internet of Things service provider, for $US1.4 billion in cash, in a move designed to bring together the tech giant’s connectivity, security and automation portfolios.
The end result? A complete IoT service solutions for the tech giant.
Jasper is one the industry’s leading IoT service platform in terms of number of enterprises and service providers; in fact, many of the world’s largest enterprises and service providers are using the Jasper platform to scale their IoT services business globally.
With Jasper, companies can connect any device - from cars to jet engines to implanted pacemakers - over the cellular networks of the top global service providers, and then manage connectivity of IoT services through Jasper’s Software-as-a-Service platform.
In serving over 3,500 enterprises worldwide, and working with 27 service provider groups globally, the proposed acquisition will allow Cisco to offer a complete IoT solution that is interoperable across devices and works with IoT service providers, application developers and an ecosystem of partners.
Terms of the acquisition will see Cisco continue to build upon the Jasper IoT service platform and add new IoT services such as enterprise Wi-Fi, security for connected devices, and advanced analytics to better manage device usage.
“I am excited about the opportunity for Cisco and Jasper to accelerate how customers recognise the value of the Internet of Things,” says Chuck Robbins, CEO, Cisco.
“Together, we can enable service providers, enterprises and the broader ecosystem to connect, automate, manage, and analyse billions of connected things, across any network, creating new revenue streams and opportunities.”
Expected to close in the third quarter of fiscal year 2016, Jasper CEO Jahangir Mohammed will run the new IoT Software Business Unit under Rowan Trollope, Cisco senior vice president and general manager, IoT and Collaboration Technology Group.
“IoT has become a business imperative across the globe,” adds Jahangir Mohammed, CEO, Jasper Technologies.
“Enterprises in every industry need integrated solutions that give them complete visibility and control over their connected services, while also being simple to implement, manage and scale.
“By coming together, Jasper and Cisco will help mobile operators and enterprises accelerate their IoT success.”