Cisco CEO sees ‘Internet of Everything’ as a 19-trillion-dollar market

The Chief Executive Officer of Cisco Systems Inc. – John Chambers, said that the “Internet of Everything” could turn out to be a 19-trillion-dollar opportunity, Bloomberg reported earlier today. Yesterday, Mr. Chambers made a keynote presentation at the International Consumer Electronics Show sharing his view of a world in which objects everywhere are connected to the Internet know peoples preferences. According to Mr. Chambers, this could make customers buy more goods. Other effects are also expected to follow such a revolutionary innovation.

Still, Mr. Chambers said: “This is not about technology at all. Its about how it changes peoples lives forever.”

No matter that Cisco Systems Inc. is currently having some troubles thanks to weaker sales in its networking-gear business, the company is planning to face the challenge of the Internet of Things. Some analysts forecast a revenue decline by almost 5% in fiscal 2014. As reported by Bloomberg, in December 2013 Cisco cut its sales growth outlook for the next three to five years amid weaker demand from emerging markets and telecommunications service providers.

A Senior Vice President of Cisco – Kip Compton shared in an interview: “We think the Internet of Everything is the biggest transition for the Internet since the birth of the Internet.” The company is becoming more focused on the Internet of Everything by working on projects such as designing wristwatches for soldiers and centrally linking medical facilities and educational systems inside cities. Ciscos goal is to increase the quantity of networking equipment, software and services sold. Right before the presentation of Mr. Chambers, the company announced that the Internet of everything is expected to boost global corporate profits by 21% by 2022. According to the companys presentation, 50 billion objects will be connected to the Internet by 2020.

One of the analysts working at Robert W. Baird & Co. – Jayson Noland shared his surprise by Ciscos large and persuasive presence at the Consumer Electronics Show, “given Ciscos de-emphasized consumer electronics over the last couple of years.”

According to CNN Money, the current share price of Cisco Systems Inc. is 1.36% up, and its one-year return rate is 0,53% down. The 35 analysts offering 12-month price forecasts for Cisco Systems Inc. have a median target of 25.00, with a high estimate of 30.00 and a low estimate of 16.00. The median estimate represents a +12.06% increase from the last price of 22.31.