Cisco buys the stairway to internet-of-things heaven

the Cisco kidIn a bid to get into the internet based cars and medical devices market, Cisco has written a $1.4 billion cheque to buy a start-up called Jasper.

Jasper makes a software platform that helps monitor these devices once they are online.

Rob Salvagno, Cisco’s vice president of corporate development, said that the Internet of Things has been a priority for Cisco for the past few years.

“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.

Cisco, has bought dozens of smaller companies over the years, is shifting its business toward high-end switches and routers and investing in new products such as data analytics software and cloud-based tools for data centres.

Jasper is the largest deal for Cisco since it acquired security company Sourcefire for $2.7 billion in 2013.

Jasper was close to having an IPO. Jasper’s chief executive, Jahangir Mohammed, will stay on with

Cisco and run a new Internet of Things Software Business unit once the deal closes in the third quarter.

Cisco will have to complete with IBM, General Electric and Microsoft.