Cisco wants to drive tech innovation
Cisco Systems (CSCO) recently announced a plan to invest around $11 million to grow its business in Canada. The investment will go into funding three main initiatives: job creation, skills development, and technological innovation. Cisco operates research centers in Western Canada.
Cisco’s latest Canada investment allocation comes as the company pursues new growth opportunities outside its traditional networking hardware market. The company has diversified into cybersecurity as well, and is one of the providers pursuing the $300 billion revenue opportunity in the cybersecurity market.
Sights on the $300 billion revenue opportunity
According to data from Global Market Insights, the global cybersecurity market was worth $120 billion in 2017 and is on track to hit $300 billion by 2024. The growth opportunity in the cybersecurity market looks so attractive that even media giant Comcast (CMCSA) has thrown its hat in the ring. Comcast recently announced the acquisition of cybersecurity startup BluVector and said it would bring its resources to drive uptake of the startup’s existing products as well as support the development of new ones.
Cisco’s security revenue jumped 18%
Cisco generated $658 million in revenue from its cybersecurity-focused business in the second quarter of fiscal 2019, which ended in January. Security revenue rose 18% YoY. The company’s overall revenue for the quarter jumped 7.0% YoY to $12.4 billion. Cisco’s fellow cybersecurity vendor Palo Alto Networks (PANW) reported a 30% YoY increase in revenue in its second quarter of fiscal 2019. Revenue was mostly flat at Symantec (SYMC) but rose 6.0% YoY at FireEye (FEYE) in the December quarter.