Companies Are Banking on the Internet of Things to Fuel Growth

tech.co

If recent announcements are a sign of a new trend, today’s companies are banking on the Internet of Things (IoT) to fuel their growth in 2016. This is not surprising, because the Internet of Things is one of the fastest growing entities in the global economy. With estimated value in the billions of dollars by 2020, connected technology is where the future is. Several companies are making moves to ensure that they are able to get a piece of the IoT pie as these changes hit the market in full force.

Silicon Laboratories Focusing Efforts on IoT for Future Growth

One of the companies who is hoping the Internet of Things is the answer to its growth concerns is Silicon Labs. With an expertise in integrated circuits, Silicon Labs is poised to provide a much-needed service to companies who are making changes to embrace the IoT. Interestingly, according to Dan Caplinger of Motley Fool, early indicators show that the investment into the IoT is paying off.

Interestingly Caplinger says that Silicon Labs investors were preparing to see a decline as the fourth quarter closed, but the company actually saw a much smaller drop than expected. In the Internet of Things segment, Silicon Labs saw growth over the third quarter. The company also announced several product highlights in the IoT segment, including connected home-reference designs that make it easier to link up home automation technology as well as voice-enabled remote controls for home-entertainment systems. These announcements and the growth in the IoT market show that Silicon Labs is making strides in this particular market area.

Cisco Investing Billions in Internet of Things

Silicon Labs and its strides into the Internet of Things market are encouragement, but certainly not as impressive as a recent announcement from Cisco‘s new CEO Chuck Robbins. Earlier in February Robbins announced Cisco would invest $1.4 billion on Jasper Technologies, an IoT software developer that allows companies to connect just about everything to the Web.

About this acquisition, CNBC’s Ari Levy said, “It’s Cisco’s biggest deal since the 2013 purchase of cybersecurity company Sourcefire for about $2.5 billion.” He also noted that this was only Cisco’s seventh billion-dollar acquisition since 2000. Cisco has been telling the world that the Internet of Things is where the future is, and now it appears to be putting money exactly there.

“To stay relevant,” Levy said, “Cisco needs to provide the backbone that enterprises rely on for connectivity, stability and security.” With the purchase of Jasper Technologies, they are starting to make a move towards this. Jasper Technologies has been working on connecting devices for a long time, being founded three years before the release of the first iPhone and the huge drive towards an increasingly connected world.

So what do mergers and announcements like these show? They show that the Internet of Things is here to stay, and companies that are serious about a future in tech are going to need to take the time and spend the money to invest in it. With a strong Internet of Things connect; today’s companies will be able to move forward with success in 2016 and beyond.