John Chambers is stepping down as CEO of Cisco to become executive chairman. He is pictured here speaking during a panel discussion during the 2015 International Consumer Electronics Show in Las Vegas, Jan. 7, 2015.
John Chambers is stepping down as CEO of Cisco to become executive chairman. He is pictured here speaking during a panel discussion during the 2015 International Consumer Electronics Show in Las Vegas, Jan. 7, 2015.

Once upon a time, the Internet of Things (IoT), an emerging technology that allowed physical devices (“things”) to connect and communicate with each other and the Internet, was a futuristic trend for technology enthusiasts. John Chambers, former CEO and Executive Chairman of Cisco Systems and founder JC2 Ventures, was one.

When someone asked him what he thought was the next big thing during a CES presentation in the late 1990s, he replied, the IoT. Now that IoT is a reality for everyone, Chambers gives his take on the future of IoT, the Metaverse, and the fate of tech giants.

Where is the Internet of Things heading?

"I’ve been fortunate in my career to call several market transitions right. I’m predicting that 2022 will be the year that IoT really takes off. More specifically, 5G and the concept of the cloud moving to the edge will be the enablers for IoT now and in the near future. 500 billion devices will be connected to the Internet by 2025 – and there is already more data out there than observable stars in the sky. Businesses that capitalize on this market transition towards the next generation of the Internet will win.

"IoT is about creating a world where everything – and everyone – is connected. Connectivity has the power to transform economies and generate new and inclusive opportunities by democratizing work and the ability to build skills. It’s for that reason several of my investments at JC2 Ventures are focused on harnessing the transformative and connective power of emerging technologies like IoT, including CloudLeaf, which focuses on using disruptive technologies like Internet of Things, A.I., machine learning, and advanced analytics to create a digital companion to existing supply chains.

"In addition to IoT, 2022 will also be the year we see AI go mainstream. AI, IoT, 5G, the cloud moving to the edge, all in combination, alongside other emerging technologies are what will allow for tech disruption on a large scale."

What about the Metaverse? Is it for real? How will it change our lives?

"The Metaverse is still in its infancy. For now, I can say that it is certainly something that will be exciting to see play out over the coming years. "

Is there any new trend in technology on his radar?

"I believe that the Big Tech companies we see today as the “leaders” (AAPL, MSFT, AMZN, FB, GOOGLE, etc.) won’t necessarily hold that title 10 years from now. Disruption in the industry can impact even the giants, and given how volatile the market currently is, there is a ton of room for new players to emerge and reestablish the status quo.

"We are seeing a new resurgence of startups, and then when you look at startups that have been around for a while, they are getting to the point of being able to really help drive economic growth. Consider that the number of 'unicorn' status startups we have seen emerging in the past couple of years, which just in the U.S had more than tripled from 2020 to 2021. This is important because startups start adding meaningful headcount once they reach $1B valuation and/or go public.

"AI and cybersecurity startups will be especially important for investors to watch in the coming years. With the near constant data breaches and threats to consumer and corporate data we saw in 2021, companies that are investigating new applications for AI in tandem with cybersecurity are going to be key. In fact, I predict there to be dramatically more threats to data as the years come, so companies need to start investing in and focusing on breach prevention, rather than recovery."

Ukraine learned about that threat too well during the Russian invasion. Hopefully, America will never be in that situation. Meanwhile, Wall Street is already placing its bets in Internet security stocks, which helped the tech shares recover from Thursday’s sell-off.