Cisco (CSCO) To Buy Jasper Technologies For $1.4 Billion
Cisco Systems, Inc. CSCO, headquartered in San Jose is planning to acquire Santa Clara based start-up Jasper Technologies Inc for $1.4 billion in cash for a deeper push into the Internet of Things (IoT).
Why It Makes Sense
Jasper is currently the leader in the IoT space on the basis of the number of enterprises and service providers it serves globally.
In fact, Cisco’s vice president of corporate development, Rob Salvagno said, "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"
Jasper has an automated system for managing and monitoring IoT devices (whether connected cars, homes, or medical devices, or other) through the cloud. As a result, enterprises and cloud-based service providers can use the system to launch services and track usage of their customers using IoT devices.
Cisco says that Jasper will simplify the main aspects of IoT for its customers, i.e. connecting and securing devices on a global scale while collecting and analyzing the data they generate.
Conclusion
IoT is a very happening segment within technology at the moment. Apart from Cisco which manufactures and sells computer networking equipment, companies like International Business Machines Corporation IBM, General Electric Company GE and Microsoft MSFT have been planning to invest in the development of data-tracking techniques for sensor-equipped devices and smart phones.
Cisco’s acquisition of Jasper reveals its continued focus on building a strong foothold in the IoT space, as it had earlier entered into an alliance with Fanuc America, robotics company, which uses IoT technology to monitor robots.
Cisco Systems shares carry a Zacks rank #3 (Hold). Another better ranked stock is Extreme Networks Inc. EXTR, carrying Zacks Rank #1(Strong Buy).
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