February 3’s announcement that Cisco had acquired Jasper Wireless for $1.4 billion is good news for IoT.
As our CEO Dave Friedman will tell you, the next frontier of the Internet is "things." And just like Google's acquisition of Nest provided great value in the consumer space, Cisco's acquisition of Jasper is a statement of IoT value in the enterprise.
By far, Jasper has been the dominant cellular IoT platform for service providers. Its platforms enable enterprises and mobile operators to launch, manage and monetize IoT services in manufacturing, energy, automotive (e.g., connected cars!) and other industrial Internet markets.
It’s a great fit for Cisco, which also focuses on the Industrial Internet of things (IIoT). More important, Jasper’s strengths beef up Cisco's cloud platform and enable its end-point devices.
Cisco will undoubtedly inject more capital into Jasper and layer on its Cisco hardware and services to extend growth in new markets; for example, connected cars.
That vertical market has been “driving” revenue for Jasper and its customers for the past two years. Now the road is wide open for Cisco to target this very profitable IoT segment.
Cisco has made 11 acquisitions in the last 12 months, and the Jasper deal shows that Cisco recognizes the value of the Internet of Things.
- Listen to the recent segment of the Peggy Smedley Show, Episode #439 - New Acquisitions, as Dave Friedman, CEO, Ayla Networks, joins Peggy and discusses what this acquisition means for the IoT (Internet of Things) space.
- Ayla closed a USD $14.5 million Series B financing round in 2014 with investments from Cisco and other investors.