There could hardly be a simpler way than lighting to bring Internet of Things to enterprises globally and Cisco Systems, Inc. CSCO knows the power of lighting.
Recently, Cisco teamed up with Dutch lighting company, Philips, to sell Internet-connected lights to enterprises in order to enter the so-called smart lighting space.
The Alliance
This deal brings together Philips’ LED-based connected lighting system and Cisco’s IT network to address the worldwide office market. It is projected to hit EUR 1 billion according to Royal Philips’ estimate based on the size of the total addressable office lighting market.
Customers will be able to save on electric bills as these lights will be automatically switched on only when somebody is in the room. Additionally, the devices will adjust the lighting according to employees’ tastes to ensure maximum productivity.
Per Bill Bien, SVP, Head of Strategy and Marketing, at Philips Lighting, “Customers will receive the best energy efficient lighting experience in the connected world and be able to use information acquired from their connected lighting system to save energy, reduce costs, improve productivity and optimize their workspace environment. Lighting that is connected to highly secure, reliable IT infrastructure will form the backbone of the smart office of the future.”
Jointly the two companies will step up the adoption of this technology in the market.
Conclusion
As connected lighting comes with sensors, it is capable of sensing and measuring the environment. For instance, the occupancy sensor is capable of providing information on space utilization, which in turn helps to cut costs.
According to the press release from Cisco and Philips, normally 40% of a building’s electricity is used for lighting. Almost 80% of this can be saved through the Philips LED connected lighting system controlled via a network with Cisco.
To help customers know more about this, Cisco will install a Philips connected lighting system at its Canadian headquarters in Toronto.
Cisco currently has a Zacks Rank #3 (Hold).
Investors can consider stocks of Stamps.com Inc. STMP,Travelport Worldwide Limited TVPT and Amazon.com AMZN. While Stamps.com sports a Zacks Rank #1 (Strong Buy), Travelport and Amazon carry a Zacks Rank #2 (Buy).
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