US multinational networking giant Cisco has acquired cloud-based IoT connectivity and services provider Jasper in a US$1.4 billion cash deal.Commenting on the acquisition, Rob Salvagno, Cisco's VP of corporate development, said the California-based Jasper delivers the largest Internet of Things (IoT) service platform in the market.
Salvagno said: "Together, Jasper and Cisco can accelerate the adoption of IoT with greater impact and at a greater scale than either of us can do alone."
The acquisition complements the core competencies and focus areas of both companies. Cisco sells IoT gateways, which are used to communicate with wireless sensors and other IoT devices, as well as ruggedized routers and switches - used in Internet of Things applications in industrial vertical markets.
These technologies enable users to collect and route data from sensors that are increasingly added to stationary machinery and mechanical systems.
California-based Cisco also sells software used to filter incoming data and perform analytics, to help end users derive value from that data, reports M2M World News.
In line with Cisco’s core business activities, Jasper’s software and services enable thousands of companies to launch, manage and monetize IoT services, claims the company.
The majority of Jasper’s customers have mobile IoT applications including connected cars and mobile asset management.
Rowan Trollope, the senior VP and general manager of Cisco's Collaboration and IoT Technology Group, said the company is “looking to transition their business models from a static product to a connected service," adding that Jasper's platform enables them to do so quickly and easily.
Cisco expands connectivity footprint
Jasper’s clients employ mostly cellular networks to connect their devices. Cisco's deployments leverage enterprise networks using Wi-fi, wireless personal area networks (WPAN) or low-power wide area networks (such as Lora). The deal is thus viewed to expand the IoT connectivity footprint for both companies.
The IoT platform provider’s software is enabled via network operators across the world and customers are able to track the connectivity status and data usage related to those IoT devices.
Jahangir Mohammed, chief executive officer at Jasper, said: "It's new territory [for our customers - connecting static products]. With our cloud platform, we are enabling enterprises to develop connected services much faster than they could on their own."
In reference to Cisco's hardware and software analytics capabilities, Mohammed added: “Partnering with Cisco lets us do that at a larger scale and with a more complete solution.”