Cisco (CSCO) has soared more than 63% during the past 12 months and, if CEO John Chambers is right about the $14 trillion opportunity in the “Internet of Things,” that could just be the beginning of long-term upside.
The Internet of Things is a simple concept. Over time, it means more and more inanimate (and animate, actually) things will be connected to the Internet, and thus each other. This includes everything from smartphones to cattle to medical equipment to parking meters.
If this sounds vague — which it admittedly is — just consider this great graphic straight from Cisco about these “things.”
Mind … blown.
Call me old-fashioned, but I was just getting used to smart parking meters, mobile app cab-hailing and micro-chipping puppies.
But already, Cisco’s Karen Tillman published a post on the company’s blog earlier this week that estimated that, in 2013, 80 things connect to the Internet per second, with 1,000 per second expected next year. Cisco estimates that 50 billion devices will be connected to the Internet by 2020, which translates to $14.4 trillion in bottom-line potential for companies at the movement’s forefront.
Science and tech blogger Jason Dorrier actually thinks the 50 billion estimate of things — and thus the trillions upon trillions of profit — might be too conservative. As he put it: “In a world of exponential technology, things can move faster than our linear brains can fathom.”
You can say that again.
Alyssa Oursler is the Assistant Editor of InvestorPlace. Follow her on Twitter at @alyssaoursler.