Cisco announces intent to acquire IoT/M2M connectivity management company Jasper

Today, Cisco announced its intent to acquire Jasper for approximately USD1.4 billion.

Jasper is an IoT connected device platform.

What does this acquisition mean for enterprises and communications carriers:

  1. With the acquisition, Cisco will play a major role in managing the network for both gateway-centric and cellular IoT solutions.

  2. Enterprises will no longer have to use multiple vendors to manage the IoT LAN and WAN environments. The combination of Cisco and Jasper technologies will make it easier for businesses to connect. IoT connectivity management and IoT network management will hopefully become more simple.

  3. Carriers will no longer have to worry about under-investment in IoT connectivity management. Cisco, with its strong focus on IoT, will ensure that the Jasper solutions will receive proper investment and a good product roadmap.

  4. By leveraging Jasper’s client base, Cisco will further built out its network of carrier and enterprise for development, deployment and maintenance of IoT solutions.

This acquisition likely creates tension in the Cisco – Ericsson partnership announced in late 2015. MachNation estimates that over 90% of the world’s IoT mobile SIMs are managed by either Jasper or Ericsson. We believe it very unlikely that Ericsson and Cisco will be willing to collaborate on IoT connectivity management to elevate the quality of solutions for all enterprises and SPs. More likely, this acquisition will create tensions in the partnership.

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