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Cisco (CSCO) Teams Up with Robotics Firm Fanuc for IoT

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Technology giant and Dow component Cisco Systems, Inc.CSCO recently entered into a strategic alliance with a robotics company Fanuc America, thereby stepping up its efforts to make itself a key player in the Internet of Things (IoT) space.

The Alliance

Per the alliance, Fanuc and Cisco have built an IoT system that enables Fanuc to monitor every robot on the factory floor. This way it can be determined whether a robot is likely to fail, so that a service technician can fix the equipment before it stops working.

This could save companies hundreds of dollars of fixing cost. Per Cisco CEO Chuck Robbins, downtime for these robots can cost a business $16,000 per minute. Therefore, the new system that offers predictive maintenance can be a big thing for some operations.

The companies are currently testing the system in a channel that comprises around 1,800 robots and includes Fanuc customer, GM. In this testing period, Fanuc says its customer has saved $38 million. Fanus has plans to expand the system to 2,500 robots by the end of the year.

Robbins believes that IoT will be "bigger than the first wave of the Internet. It has to be, there will be 30 times the number of devices connect compared to what's connected [to the Internet] today."

Conclusion

The IoT devices are expected to bring about a revolutionary change by increasing the connected network of people and things on a scale that was once difficult to imagine.

The IoT concept foresees billions of connected devices and systems with applications ranging from sensors and mobile devices to home appliances and cars. According to research firm IDC, as reported by the Wall Street Journal, the IoT market could nearly triple in the coming years. In 2014, the global IoT market was worth $655.8 billion, but it could reach up to $1.7 trillion by 2020.

We believe that the chance to tap such an opportunity within the fast-growing IoT market is astounding. In its Jun 2015 report, McKinsey Global Institute projected that IoT applications could be worth as much as $11.1 trillion every year by 2025. We believe that by adding IoT cloud into its existing solutions, Cisco will record considerable gains.

Cisco firmly believes that its future rests on IoT and that it has far reaching implications including in areas such as analytics and security.

Therefore, the partnership is in sync with its ambitions.

Cisco carries a Zacks Rank #3 (Hold). Better-ranked stocks include Aspen Technology, Inc. AZPN , Xplore Technologies Corp. XPLR and Majesco Entertainment Co. COOL . All three stocks sport Zacks Rank #1 (Strong Buy).

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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