Cisco Systems is all set to invest a massive $1 billion in the technology sector of the United Kingdom. The company wants to invest and do wonders in the booming Internet of Things market. The company announced on Thursday regarding its plans to invest in the country’s sector over the next 3 to 5 years that will actually help in boosting the information technology sector of the United Kingdom. This is the first and new investment after four long years where the networking giant vowed to spend $500 million for the same cause in UK.
According to Fortune, “Cisco will use part of its new investment to scout for potential acquisitions in the UK and has experience in purchasing UK-based companies. In 2013 it bought out Ubiquisys, a maker of a type of cellular technology known as a small cell, for $310 million.” Furthermore, the company also invested $5 billion in 2012 in a British company named NDS Group. NDS Group specialized in software for cable television.
The company sees the technology sector of UK as of high potential and hence wants to invest in it without any further ado. It is believed that the startups based in the United Kingdom, which will be working on technology and Internet of Things, will prove to be beneficial for Cisco in the coming times as it vows to spend $150 million in them to fasten growth.
Sources suggests, “The company was vague on what types of Internet-of-things companies or specific technologies it wants to target in the region, but it did mention that ‘smart city development’ is an area it wants to invest in.”
This will also enhance and push the business of Cisco as more and more municipalities will be buying the products of Cisco branded Internet of Things in software and hardware, which faces fierce competition from Oracle, IBM, and HP in the market.
The $1 billion investment plans come immediately after it announced plans to expand its investment in China. The China investment plans were of $10 million and it took Cisco only one month to go for new plans and invest in United Kingdom’s technology sector.
However, these two are not the only countries that the company will be investing in, in the coming times. The company said earlier this week that it also has plans to give $100 million to the France based startups. Cisco is all set to penetrate in the Internet of Things market, which seems to be the future.
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