Thursday 9 July 2015 8:32 am

Cisco is making $1bn investment in UK tech including $150m IoT startup venture backing


I'm City A.M.'s award-winning technology editor, covering everything from happenings at Apple and Google to the latest London startup. In particular fintech, blockchain, artifical intelligence, driverless cars, virtual reality and the sharing economy get me out of bed in the morning. I'm always trying to illustrate stories with pictures of dogs. Sometimes with some success. I was named technology journalist of the year at the UK Tech Awards.

I'm City A.M.'s award-winning technology editor, covering everything from happenings at Apple and Google to the latest London startup. In particular fintech, blockchain, artifical intelligence, driverless cars, virtual reality and the sharing economy get me out of bed in the morning. I'm always trying to illustrate stories with pictures of dogs. Sometimes with some success. I was named technology journalist of the year at the UK Tech Awards.

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.

Read more: British Gas just splashed £44m on the Internet of Things

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.

Read more: Now Dixons Carphone is going to offer mobile for the Internet of Things

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."

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