Cisco is making a major long-term investment in UK tech with $1bn of investment and the creation of hundreds of jobs.
The tech company which already employs 7,000 people in the UK – its biggest market – is also eyeing up acquisitions here, continuing a spree that has seen the company buy up five tech companies already this year.
UK startups developing fledgling Internet of Things (IoT) technology across FinTech, retail, healthcare and smart cities, will benefit from $150m of venture capital, while cyber security will also be an equity investment focus for the firm.
Rival IBM earlier this year made a $3bn investment in a unit dedicated IoT technology, an area that is expected to be worth $1.7 trillion by 2020 according to IDC, while British chipmaker ARM has partnered with several major firms to create a standard IoT operating system.
As part of the three to five-year investment, Cisco will double its size in the capital with new offices by the end of the year, hiring more than 200 new staff.
Cisco's investment will also stretch further than the capital, as the government attempts to build a so-called northern powerhouse, with new University collaborations, an expansion to its apprentice programme and new enterprise centres, as well as extending its involvement in the British Innovation Gateway in collaboration with the government.
“We believe the UK is well on its way to becoming one of the top digitized countries in the world, and we’re proud to once again activate new programmes and continue our deep commitment to partnering with the UK government," said Cisco chairman and chief executive John Chambers.
The Prime Minister David Cameron heralded the investment in the UK's digital economy, which follows previous investment of $500m which Cisco says has added $5bn to the UK economy.
"This massive investment from Cisco is great news for the UK's growing digital economy and is a clear vote of confidence in our long-term economic plan. It will create jobs and growth across the country, providing security for hard working people."