Tuesday after trading had closed, Cisco held a press briefing to announce its $1.4 billion acquisition of IoT platform provider Jasper. Rowan Trollope, General Manager of Cisco’s Internet of Things (IoT) and Collaboration Technology Group, said Cisco saw Jasper as “a unique opportunity because it has built a platform that is disrupting a massive market.” The acquisition, Trollope said, was particularly valuable because it wouldn’t result in duplication of capabilities. “If you overlay the map of Cisco’s IoT portfolio with Jasper’s portfolio,” he said, “there’s no overlap.”
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Jasper’s founder and CEO Jahangir Mohammed said the deal would enable Jasper’s reach into new markets beyond their current 3,500 enterprise customers.
Cisco’s Trollope noted that Jasper had become very strong in the “Internet of moving things” by working with telecom service providers, but that Cisco has technologies “at a lower level of the stack. What we’re seeing more and more is that mobility is a key part of the solution but that we can offer an extended and broader set of connectivity options.” Rowan also noted that Cisco could bring much to Jasper-based IoT implementations in the way of real-time and streaming analytics as well as its service exchange platform.
The Jasper business model — SaaS and the recurring revenue model that tends to come with it — is certainly also part of the appeal to Cisco and was mentioned during the briefing.
In a blog post, Rob Salvagno, Cisco vice president of corporate business development, said that Jasper and its founder Mohammed Jahangir had recognized early that cellular connectivity was about more than cell phones. Salvagno wrote that “this early insight has proved fruitful, and now many millions of “things” are connected to the network and working on Jasper’s platform.”
Salvagno said Jasper’s Mohammed will be leading a newly formed IoT Software Business Unit under Cisco’s IoT and Collaboration SVP/GM Rowan Trollope.