Cisco is already making 5G routers for North American carriers
Cisco Systems Inc. (NASDAQ: throughCSCO) is showering on success. The company builds most of the hardware that powers the internet and most of the devices that connect to the net run on Cisco appliance.
The company believes the internet is living its biggest wave trend yet: the Internet of Things (IoT). CEO John Chambers has high hopes on the market and numbers show strong results: In the last decade, Cisco has earned over 76$ billion after taxes and bought back 1.1 billion shares.
It’s become the world’s largest networking company in the world. Their clients include Intel (INTC), Ericsson (ERIC), Verizon (VZ), Amazon (AMZN), Ford (NYSE: F), and General Motors (GM). They are even developing 5G routers for U.S. carriers.
They posted 16% increased revenue during 2016 and 21% over the last 52 weeks. It’s had $12 billion sales with a margin of safety of 65.2%. They are standing at a five and a ten year high.
Cisco is no longer a startup. It’s a $160 billion enterprise paying 3.25% dividends, with thousands of hardware solutions for connectivity, leaders in the push for IoT devices and data management.
Cisco predicts 50 billion devices will support the IoT by 2020
The IoT links electronic devices to the internet, and the world is shifting toward an intelligent environment steadily. From the oven to the bus, IoT has the potential to change how the everyday routines work.
The Internet of Things (IoT) market size may reach $1.88 trillion by 2022, according to a new investigation by Grand View Research. In fact, Business Insider magazine forecast over 24 billion IoT devices by 2020 and 34 billion total connected devices.
Technological proliferation increases connectivity and pushes forward the IoT’s market growth. The value of its impact may be underestimated by the big companies, as the IoT is affecting business and forcing them to adapt to new technologies.
5G is going to reshape the world as we know it
Futuristic commodities as connected wearable devices, vehicles, homes or even cities are prone to open extensive opportunities in the market in the next seven years, especially for companies as Cisco.
The major setback is the ongoing debate between privacy and online data. There is an absence of globally accepted standards to address the issue while increasing regulations in the U.S. and Europe in support of data security are one of the greatest challenges of the industry.
Source: Guru Focus