Cisco injects $1bn into UK economy

Networking giant to fund multiple Internet of Things- and digital-related projects over the next five years

Cisco is investing $1bn (£650m) in the UK economy in a bid to fund Internet of Things and digital projects across the country.

The investment - which was finalised in a meeting between Cisco top brass and David Cameron this morning - comes after the US networking giant ploughed $500m into the UK back in 2011. Cisco claims its first cash injection contributed more than $5bn in "technology and manpower" to the UK economy.

The latest round of funding will see Cisco continue and expand on some of its projects, such as the British Innovation Gateway, which helps to nurture up-and-coming tech talent.

The vendor will also expand its Cisco Networking Academy education programme in the UK in recognition of the local issue of encouraging youngsters to study science, technology, engineering and maths.

Cisco employs around 7,000 staff in the UK and claims it will double its footprint in central London with a new office, which will be home to an additional 200 staff, by the end of the year.

The UK is not the only country in which Cisco has splashed the cash - it recently splurged $100m in France on similar initiatives and reports suggest a similar investment could be on the cards in Germany soon too. The moves form part of the company's "country digitisation acceleration" plan.

Cisco's chief executive, John Chambers, is set to retire at the end of the month and will be replaced by Chuck Robbins. Both leaders met with the UK prime minister this morning to agree the investment, along with Cisco's UK chief executive Phil Smith and the business secretary Sajid Javid.

Chambers (pictured) said: "We believe the UK is well on its way to becoming one of the top digitised countries in the world, and we're proud to once again activate new programmes and continue our deep commitment to partnering with the UK government.

"Since 2011 we have delivered over and above on every objective we set with government in our prior commitments - encouraging technology, innovation and entrepreneurship."

Prime minister David Cameron said: "This massive investment from Cisco is great news for the UK's growing digital economy and is a clear vote of confidence in our long-term economic plan. It will create jobs and growth across the country, providing security for hard-working people."