The alliance will bring together Philips’ light emitting diode (LED)-based connected lighting systems with Cisco’s IT network that will address a market estimated to be worth $1.1 billion. Using light points in the Philips system equipped with sensors and software, applications can be connected using Cisco’s network technologies.
Under terms of the agreement, the two companies will collaborate on a go-to market strategy on lighting and IT products in order to bring the Internet of Things to life in offices and commercial buildings worldwide. The companies seek to accelerate the adoption of IoT lighting in order to help businesses and consumers increase connectivity, comfort and efficiency in modern buildings.
“The world is becoming digital, and by working with Philips, we can help building owners more quickly digitize their lighting networks to drive better user experiences and efficiency,” says Edwin Paalvast, senior VP of Cisco’s EMEAR group. “By partnering with Philips, we are delivering a reliable PoE-powered LED lighting solution using a highly secure IT network.”
Cisco and Philips say lighting is the first logical step in bringing IoT to enterprises worldwide in a way that becomes intelligent to sense and measure the environment. For example, occupancy sensors in a LED-connected system can provide information of space utilization to help reduce costs, the companies say.
As lighting makes up about 40% of a building’s electricity use, nearly 80% in energy savings and reduced building maintenance costs can be realized by using a LED connected lighting system through a network with Cisco, the companies say.