February 4, 2016

Large Scale IoT Investments Already Starting To Take Shape

By Jeremy Daniel

IoT Investments

The Internet of Things (IoT) took a major step closer to becoming the dominant reality of our times today with the news that software giant Cisco would be acquiring a startup called Jasper Technologies Inc for a jaw-dropping US$1.4-billion in cash and equities. It’s the latest high-profile acquisition in a power struggle for dominance as the internet of things moves from vision to reality.

Jasper’s primary business is to connect cars and medical devices to the internet, and it lines up neatly with Cisco’s vision of its future which revolves around data analytics software and cloud-based tools. The deal should also be seen in the context of Cisco’s recent prediction that the Internet of Things will generate US$8-trillion over the next 10 years.

Established IT companies and multi-nationals all over the globe appear eager to be part of a movement which, according to research firm Gartner, will see over 20 billion devices connected to the net in the next five years, and dramatically alter the way we function in a connected world. Over US$14-billion was spent in 2014 on more than 60 acquisitions and mergers which can be directly attributed to IoT.

In 2015, IBM announced it would be investing US$3 –billion in a new unit called the IoT Foundation and that it was committed to developing “a cloud-based open platform designed to help clients and ecosystem partners build IoT solutions.”

Not only does Jasper connect devices to the internet, but it has also developed an effective software platform that monitors devices once they have been connected online. Cisco’s VP of corporate development Rob Salvagno explains, “We’ve been keeping an eye on this market and what we noticed was that Jasper represented a unique asset. We believe they are the largest Internet of Things service platform of scale today,” he said.

The flurry of acquisitions in the last year or two and the growing price tags attached, underline the belief that the Internet of Things is the next big thing and that it will rapidly turn from a ‘nice-to-have’ function of homes, cars, and appliances to a ‘must-have.’

According to research firm 451 Research, many of the large online players involved in these deals were jostling for position and to stake out an early claim to this breaking wave of innovation. “The sharp rise in deal-making activity in 2014 suggests that market forces surrounding IoT have become sufficiently compelling to demand action,” says the report.

Corporations such as Home Depot, Walmart, Capital One and Aetna have all been purchasing startups, in order to acquire the talent and the infrastructure to compete in a changing, connected world.

Jasper is the latest, and the biggest, deal we have seen for some time, but it certainly won’t be the last.

By Jeremy Daniel

Jeremy Daniel

Jeremy Daniel is an author, online marketing strategist and a firm believer in the transformative power of mobile technology for emerging markets. Jeremy has written across various media platforms since 2001, from television to advertising to print, and spends most of his time in the beautiful city of Cape Town, South Africa.
Cloud Computing Humor
Jennifer Nwokolo

8 Useful Tools For Risk Assessment and Management

Risk Assessment and Management Risks are inevitable in every business venture. Generally, most organizations aim [...]
Read more
Premkumar Balasubramanian

It Can Be The Year of Right Clouding – But Avoid Potential Pitfalls

Some people are calling 2023 The Year of Cloud Repatriation. I think this is a bit inflammatory. [...]
Read more
Vasilena Markova

DNS Attacks: Protecting Your Digital Assets with Advanced Security

DNS Attacks: Advanced Security In an increasingly interconnected digital world, the threat of DNS attacks [...]
Read more
Surya Kant Verma

Choosing the Right Cloud Platform: A Guide to Finding Secure, Cost-Efficient Solutions

Choosing the Right Cloud Platform Cloud computing has revolutionized how organizations work, offering an increased [...]
Read more
Srini Kalapala

Driving Growth: Srini Kalapala Discusses Verizon’s Network APIs

Welcome to our interview with Srini Kalapala, Senior VP of Technology and Product Development at [...]
Read more
Steve Prentice

Episode 16: Bigger is not always better: the benefits of working with smaller cloud providers

The benefits of working with smaller cloud providers A conversation with Ryan Pollock, VP Product [...]
Read more

SPONSOR PARTNER

Unlock the power of Google Cloud with a $350 signup credit. Experience enhanced scalability, security, and innovation for your projects today!
© 2024 CloudTweaks. All rights reserved.