Cisco Systems, Inc. (CSCO - Free Report) and Teradata Corp. (TDC - Free Report) recently collaborated to leverage on IoT with a view to digitally transform cities. Integration of Cisco’s Kinetic IoT data platform with Teradata Analytics Platform enhances support for public safety and will aid in creating smart city framework. This new platform is aimed to provide solution for integrated data exchange.
Cisco Kinetic for Cities is a cloud-based platform. It helps customers extract, compute and transfer data from connected things to IoT applications such that better output and services can be delivered.
The volume of IoT data does not generate value unless it is aimed at providing the required solutions through insights. Cisco Kinetic for Cities platform will effectively collect, manage and integrate data. Integrating the disparate data silos within a city will lead to meaningful inferences. Analytics platform of Teradata will provide analytical solutions based on the inference which will cater across the city’s "planning, monetization and broader economic development efforts."
The solution is aimed to empower smart cities and "connected communities" with improved efficiency, enhanced public safety, delivering better citizen services as well as create new income opportunities. This collectively will make the cities smarter and better connected.
Further, the combined platforms are designed to protect against incidents and provide alerts, trace traffic bottlenecks so that adoption related complexity can be avoided.
Growth of Data Center and Artificial Intelligence
Per a recent article by Accenture Research, artificial intelligence (AI) is expected to increase productivity by almost 40% by 2035. Information and Communication, Manufacturing and Financial Services industries will be the top gainers from AI growth.
In one of its recent reports, MarketsandMarkets stated that the data center solutions market is anticipated to grow from $18.56 billion in 2015 to $32.30 billion by 2020 at a CAGR of 11.7%.
We believe Cisco with its enhanced product portfolio is poised to gain from growth of the industries.
Cisco’s Digital Transformation Efforts
Cisco is currently a dominant player in the smart city market, which is touted as the next game-changer in the digital transformation sector.
The company is involved in a number of digital transformation initiatives as the technology gains rapid mainstream adoption across cities and communities. Per a market research report published by Navigant Research, Cisco was recognized as "the #1 Smart City Supplier." Given its leadership in the smart cities market and growing collaborations, Cisco is well poised to reap the benefits.
However, it faces competition from International Business Machines (IBM - Free Report) , in the field of smart city technology providers.
Moreover, Cisco’s City Infrastructure Financing Acceleration Program (“CIFAP”) “provides debt and equity capital through Cisco Capital and its financing partners”. This empowers “cities and operators of urban services” to finance innovative smart city technology. This initiative highlights the company’s commitment toward providing smart city solutions. This is a key catalyst behind company’s increasing deal wins.
Zacks Rank and Other Stocks to Consider
Cisco carries a Zacks Rank #2 (Buy).
Nvidia Corp. (NVDA - Free Report) is another top-ranked stock in the broader technology sector sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Nvidia has a long-term expected earnings growth rate of 10.25%.
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