Cisco will get stronger in IoT by buying Jasper for $US1.4 billion

Jasper sells a SaaS platform for enterprise IoT management

Cisco Systems plans to acquire Internet of Things platform company, Jasper Technologies, for more than $US1.4 billion, giving the networking giant an even larger role in enterprises' growing use of IoT.

Jasper connects devices to the Internet through 27 service-provider groups around the world and runs a SaaS (software as a service) platform for managing the connectivity of those devices. This makes it easier for enterprises to take advantage of IoT to add new service revenue streams or change a business from the selling of products to the delivery of ongoing services.

As a major provider of network infrastructure, Cisco already plays a big role in IoT and sees this field as a major future direction. In Jasper, it would add one of the most prominent companies specializing in IoT. The deal is expected to close during Cisco's third fiscal quarter, which ends in April.

Cisco plans to build upon Jasper's IoT service platform, which serves more than 3500 enterprises worldwide, and add new services including enterprise Wi-Fi, connected-device security and advanced analytics to manage device use, the company said.

Jasper CEO, Jahangir Mohammed, will lead a new IoT Software Business under Rowan Trollope, general manager of Cisco's IoT and Collaboration Technology Group.

The deal will make it easier for businesses to connect IoT devices, analyst Steve Hilton of MachNation said via email. For one thing, they will no longer have to use more than one vendor to manage LAN and WAN environments for IoT, he wrote.

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