Thread regarding Cisco Systems Inc. layoffs

$1.4 billion 2016 IoT Aquisition Update: WSJ

https://www.wsj.com/amp/articles/cisco-turns-off-lights-on-smart-city-push-11609178895

"Cisco Systems Inc. is pulling the plug on a flagship effort to help digitize the modern city, the latest example of a big tech company struggling to enter a new market."

"Cisco bought Jasper Technologies Inc. for $1.4 billion in 2016 to boost its expertise in the area of the so-called Internet of Things, the connected devices that also would underpin a smart city. It launched Cisco Kinetic for Cities the following year."

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Post ID: @OP+18Ee1POq

9 replies (most recent on top)

IOT is just a buzzword at Cisco that adds no incremental revenue and wastes millions paying people who do nothing

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Post ID: @8zog+18Ee1POq

I was on the Jasper team. Got cut 2 years later. Buy and dump is Cisco's business strategy.

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Post ID: @6xvm+18Ee1POq

Per minute "Cost" of $1.4 Billion since 2016

$1,400,000,000 ÷

(60 min x 24hr/day x 365 Days Per Year × 4 Years) =

$665*

*Minute-by-Minute "Carry Cost" per Jasper Purchase

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Post ID: @2eox+18Ee1POq

IOT sales overlay team layoffs at end of Q2

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Post ID: @1ugc+18Ee1POq

Per hour "Cost" of $1.4 Billion since 2016

$1,400,000,000 ÷

(24hr/day x 365 Days Per Year × 4 Years) =

$39,954*

*Hourly "Carry Cost" per Jasper Purchase

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Post ID: @1lwz+18Ee1POq

I love how people are blaming this on Rowan. Don't promote a used car salesmen to the ELT and be surprised when he makes poor decisions.

Blame the CEO for surrounding himself with mo–ns in the ELT to boost his ego.

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Post ID: @1mnk+18Ee1POq

If that’s the standard of journalism in WSJ then I won’t be subscribing. There are so many errors it’s hard to know where to start.

They are/were two separate products intended for two different markets.

Jasper was bought on a whim by Rowan when he thought we could crack the connected car market and that IOT was all about software. (It’s probably more accurate to say it was sold to Rowan than he bought it.) It’s been a basket case from the day Cisco acquired it and I do not believe has ever been particularly profitable. It should always have been part of SP, never IOT. The IOT leadership team have been trying to k–l it, or get rid, for at least two years to my knowledge.

CKC has been on life support for a long time (and don’t confuse it with Kinetic or Edge Intelligence as it is now - sort of). CKC was developed for a limited number of use cases and was too inflexible/difficult/expensive to add new ones. There was another product, CAM, that should have displaced CKC but suffered from ‘not invented here’ syndrome so was dropped. CAM was much more flexible.

The reality for Cisco is that there are better solutions out there for the things that CKC did but it’s not true to say that there is not opportunity for Cisco in the smart city market.

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Post ID: @wbi+18Ee1POq

Jasper and Kinetic are now in two completely different business units. The business side of Jasper is doing well enough and is one of the stronger product lines in JD org. The Kinetic side of things is a different story. The $1.4B might have been overpriced, but it is not a failure and is still growing revenue nicely.

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Post ID: @dwn+18Ee1POq

Per day "Cost" of $1.4 Billion since 2016

Cost divided by overall time

$1,400,000,000 ÷

(365 Days Per Year × 4 Years) =

$958,904*

*Daily "Carry Cost" per Jasper Purchase

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Post ID: @qey+18Ee1POq

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