Cisco Systems (Nasdaq: CSCO) Abandoning efforts to move into a once promising market. The company has decided to give back its Smart Cities products and services department on a significant basis in favor of dedicating resources to another company’s initiative.
“We have recently decided to close the sale and finally support it [for] City for Cisco Speed [sic] A product line to organize our product investments to evolve market needs and customer requirements, a Cisco spokesperson said. The Wall Street Journal.
The company’s efforts gained momentum in 2016 when it acquired privately held Internet Th Things (IoT) tech expert Jasper Technologies in a 1.4 billion deal in 2016. The buyer at the time said that Jasper-owned Cisco would “get approval” to provide a complete IoT solution that is interchangeable across devices and works with the ecosystem of IoT service providers, application developers and partners. “
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IoT devices and technologies are the foundation of smart cities – a smart digital initiative that promises to modernize and automate most of the world’s infrastructure based on municipalities. Jasper was the cornerstone for Kinetic for Cities, the Smart Cities IoT unit that was founded in 2017.
The division is expected to close after several quarters of revenue from Cisco fell. Like many companies in the sector, a huge company of networking equipment has been hit hard by keeping the budget behind. The detrimental economic effects of the coronavirus epidemic are due to consumers reducing their costs on such products and services.
Investors seem to be cautiously optimistic about Cisco’s retreat. The stock was up about 0.9% on Monday, hitting about Rs S&P 500 Index
