Cisco is planning to spend $1bn in the UK tech industry in the next five years, the FT reports.
The US technology company, which plans to double the size of its London office by the end of 2015, will be spending the money through a series of venture capital investments, corporate acquisitions and education programmes, and will focus their investments in the Internet of Things (IoT) market.
In the IoT market, companies are developing smarter services and products for the financial services, healthcare, automotive and retail industries. According to the FT, IoT is expected to be a large market for connectivity and networking equipment provided by companies such as Cisco and analysts predict that there will be billions of devices that will require a basic level of internet connection.
In a recent report by MarketsandMarkets, the IoT market has been predicted to reach nearly a trillion dollars by 2019 and by 2020 interconnectivity between objects and devices will be at 31 billion.
According to the FT, Cisco will be investing $150m into UK start-ups in the tech sector and the company will also be focusing on buying innovative cyber security technology companies. Cisco will also be extending its UK-based education programme which helps students use technology, science, maths and engineering skills, in a bid to help the government to achieve its aim of addressing the economic imbalance across regions in the UK by encouraging more university collaborations, investments and apprenticeships in the north of England.
The move will provide a boost to the UK’s tech sector, which according to figures from Dow Jones VentureSource, received $1.9bn in funding last year. The significant rise in investment is predominately coming from US Corporate and venture capital investors who are looking to invest in the UK’s booming tech scene, the FT reports.
Back in February data from London & Partners, showed that tech companies in the UK received $1.4bn in funding in 2014 with $795.2m coming from US-based investors.