Large Scale IoT Investments Already Starting To Take Shape

Iot Future

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

Evelyn Min 180x180

The Companies That Know The Most About You

The Tracking Era (Updated: 11.03.2020) Right now privacy is a hot topic on LinkedIn posts, especially as it pertains to compliance with the General Data Protection Regulation. As a board advisor at Universal Patient Key, we've ...
Anita Raj

Will there be a normal to go back to after COVID-19?

The COVID-19 Aftermath Until November last year, not one of us would have expected life to take such a dramatic turn in as short as 4-5 months. Yet here we are - confined to our ...
Deepak Jayagopal

Leveraging DevOps Infrastructure as Code to Improve Cloud Provisioning Time by 65%

Improving Cloud Provisioning Time Infrastructure provisioning used to be a highly manual process for Digital Service Providers (DSPs). Infrastructure engineers would rack and stack the servers and will manually configure them. Then they will install ...
Bruce Guptill

As The Digital Workplace Strengthens, Traditional Business Thinking Must Die

The Digital Workplace The cloud-driven, digital workplace is enabling better ways of working, new ways of doing business, and entirely new business opportunities. It is also breaking down traditional boundaries and barriers within and between ...
Madhaven Krishnan

Steps To Achieve Hyper Productivity With Your Digital Apps Development

Achieve Hyper Productivity The mobile and cloud revolution in enterprise IT is well underway and is already causing never-before--seen changes in the way apps are developed, managed and transformed. The driving factors behind these changes ...
Alex Brisbourne

Industrial IoT Cyberattacks Continue To Rise

IoT Industrial Security The Internet of Things (IoT) includes both traditional electronics and everyday ‘things’ embedded with sensors, computing, and networking capabilities. From smart coffee makers and smart homes to smart lighting and smart cities, ...