By all accounts the Internet of Things (IoT) is prepping for explosive growth. IoT refers not only PC and mobile devices connected to the internet, but also internet-enabled sensors and devices in industrial machines, home appliances, automobiles, buildings, and wearable devices.Cisco predicts that the number of devices connected to the internet will double from 25 billion of 2015 to 50 billion by 2020.IDC estimates the spending on IoT will double from $690 billion in 2015 to $1.3 trillion in 2019, 17 percent annual growth.
The Internet of Things (or IoT) can be a particularly precarious place to invest. The IoT is still in early stages, which leaves plenty of room for volatility. But despite this, IoT’s potential is too massive to ignore. Cisco estimates that by 2020, there will be 50 billion things connected to the Internet, everything from cows to computers. All of those connections have the potential to fuel a lot of growth in the coming years, from established tech companies and IoT pure plays alike. But jumping into IoT stocks can feel more like a leap of faith than a sound investing decision. To help you determine which stocks have the best IoT potential, here are three companies that are making big strides right now and could have huge payoffs later.
Cisco will make strategic investments in Brazil to foster innovation, transformation and socio-economic development, expanding Cisco’s presence in the country. Cisco will invest over BRL 1 billion during the next four years around four main pillars including the opening of a Cisco centre of innovation in Rio de Janeiro; investment in a Brazil-focused ICT and digital economy venture capital fund; the expansion of local manufacturing in the country; and intellectual property agreements with Brazilian companies and entities to co-develop innovations to serve the markets. Cisco expects these investments will generate around 800 jobs in Brazil, directly and indirectly through its partner ecosystem, and will create a platform for entrepreneurship in Brazil.
Cisco this week expanded its smart grid portfolio for utilities with a reference architecture, products and services intended to modernize the electric grid.
Cisco unveiled the GridBlocks Architecture, a blueprint for integrating digital communications and the electric grid, including support for legacy utility communications networks. Cisco also rolled out field area network (FAN) equipment and transmission and substation switches and routers. The company is offering services to help utilities plan, design and optimize their new grid infrastructures.
Communications equipment giant Cisco Systems Inc. has recently expanded its efforts in Chengdu, China.
Cisco has set up a new office at the Chengdu Tianfu Software Park, the largest software park in China. Chengdu Tianfu Software Park Co. Ltd., a subsidiary of Chengdu Hi-tech Investment Group, was founded under the leadership of the Administration Committee of Chengdu Hi-tech Zone in 2009 to operate Tianfu Software Park.
Cisco announced the first offerings in its new Connected Grid portfolio of smart grid communications solutions that will help utilities more reliably and efficiently deliver electric power from generation facilities to businesses and homes, resulting in better energy management, as well as economic and environmental benefits. The purpose-built, ruggedized routers and switches form a resilient, manageable and highly secure network solution for the substation to integrate Internet Protocol (IP)-based communications with the power grid for intelligent grid monitoring and control. These technologies build on existing Cisco Smart Grid offerings and represent the latest in the company’s efforts to deliver end-to-end solutions that help utility customers address grid reliability, industry compliance and operational expenses.
Google smart grid news this morning, and you’ll see two major announcements: Duke Energy plans to partner with Cisco to make the power grid smarter across its 11 million customer footprint, and Chicago-based utility ComEd announced that it plans to work with Silver Spring Networks and GE for a smart meter pilot with 141,000 smart meters. Coincidence that the companies have launched dueling announcements? We think not.
While Cisco and Silver Spring have been partners on smart grid projects before, like the one from Florida utility FPL, this morning’s activity demonstrates very strategic moves by the companies to tout their separate (and competitive) plans with utilities. For FPL, Cisco was previously emphasizing how it would focus on the consumer space of the smart grid. But for its announcement with Duke this morning, the companies describe Cisco’s solution as an “end-to-end, smart grid communications architecture — one that both companies believe will be among the most comprehensive and interoperable in the electric utility industry.” The deal includes the network infrastructure and managing the inclusion of home energy management devices, and hundreds of thousands of smart meters across several states.
Cisco previously told us that it will be moving beyond the consumer portion of the smart grid space, extending its communications network all the way to the edge of the network. “We’re looking to build out a common communications infrastructure,” said Marie Hattar, VP of marketing for Cisco’s networking solutions. Hattar said that Cisco’s global footprint and reach into the deeper ranges of the network will give Cisco an advantage as utilities seek more comprehensive solutions.
At the core of Cisco’s plan is a secure IP-based communications network to help utility companies optimize power supply and demand.
The burgeoning network linking consumers of electrical power with its producers — the smart grid — got a new player Monday, as Cisco (NSDQ: CSCO) announced its road map for entering what it describes as a $20 billion annual market.
Cisco’s smart grid plans aim to help utilities lower the cost of energy storage, transmission, and distribution; reduce network outages; and improve the security of the nation’s power grid.