IoT start-up gets swallowed up by tech giant
Cisco announced it would be buying out privately-held firm Jasper Technologies for $1.4bn (£960 million). The deal is expected to close in the current financial quarter.
Jasper Technologies is an IoT start-up which provides connected devices to service providers. These devices connect through mobile networks and are managed via the cloud. The firm currently has around 3,500 enterprise customers, according to Cisco.
The start-up also has a service platform that automates the management of IoT services across connected devices and enables companies to create new business models that transform their products into connected services and generate new sources of ongoing revenue.
Jasper CEO Jahangir Mohammed will head up a new Cisco business unit focused on IoT software, reporting to senior vice president Rowan Trollope.
“IoT has become a business imperative across the globe. Enterprises in every industry need integrated solutions that give them complete visibility and control over their connected services, while also being simple to implement, manage and scale,” said Jahangir Mohammed, Jasper chief executive officer. “By coming together, Jasper and Cisco will help mobile operators and enterprises accelerate their IoT success.”
In a blog post, Cisco’s vice president of corporate business development Rob Salvagno said the company views Jasper as a “unique IoT service platform that is disrupting a massive market with strong strategic alignment with Cisco”.
“Jasper represents the largest platform of scale in IoT today with over 3500 enterprise customers and 27 service providers across 100 countries,” he said.
Paddy Srinivasan, GM of LogMeIn’s Xively IoT division, told Internet of Business that the the deal was “interesting” in that the start-up has been focused on monetisation and first-mile connectivity for SIM-card equipped devices, such as connected cars and kiosks.
“That gives Cisco potential access to the parts of the IoT market focused on cellular connectivity, but it doesn’t address connectivity for devices and things that use Wi-Fi or other local connections to the Internet, as is common in home automation and connected factories or offices,” he said.
“If you look at the IoT platform market today, you’ll find most innovation is focused either on that low cost and ubiquitous local connectivity or on higher-value management of these connected devices,” added Srinivasan.
“As a result, most IoT platform providers will likely view this as a welcome, complementary development.”
Click here to read our recent post on the hottest IoT start-ups to watch in 2016.