Cisco Systems, Inc (NASDAQ:CSCO)’s systematic approach to expansion
As part of a broader operation-expansion plan, Cisco Systems, Inc (NASDAQ:CSCO) will be investing $15M (9 Million pounds) in Israeli venture-capital funds. On Wednesday the company said that it plans on expansion in Israel and in other countries as well. The investment will be in the form of funds that will support integration of Israelis and the Arabs as well as development of innovative security-technologies.
Last year, Cisco, bought NDS, the Israeli pay-TV smart-card maker for $5B and stated that it will be establishing a development centre in the country. This center will sponsor cyber security research and analyze security in the health, financial and industrial sectors. The company is structuring a mesh of consulting services that will assist and also provide answers for various security needs and 100 strategic workers will be recruited in Israel which will add to the existing 2,000 employees there.
Something to ponder about
The market for purchasing information technology services and goods by government and business moved through two phases in 2012 and 2013. The first was the slowdown in spending post the recession bounce-back in 2010 and 2011. To a certain degree, this had got more complicated by Europe’s debt-related macroeconomic decline and possibly the US as well. The second phase which is the current one, is a boost in spending that has switched from older technologies such as PC’s servers, routers, IT outsourcing and enterprise resource-planning software, to new technologies like sensors, analytics, mobile devices etc.
The tech market boost
On the whole, after the 2012 period of dragging tech-market growth, tech buying is now looking a little better and it looks like 2014 will be a good year for the industry, led by the US. The European tech-market looks like it will stay depressed for a large part of what is left of 2013 before it pick up towards the end of the year. But it will be American tech buyers who will eventually make the largest adjustment, and they have been stepping-up their tech-spending as the US economy is on the mend and the demand for new cloud, mobile and smart technologies are only headed skywards to boost growth in the United States’ tech market.