Jim Cramer has the revolution of connectivity on his radar this year, as he thinks this is the year that consumers will embrace the internet of things. He sees a world where every appliance, machine or electronic device that people own will one day be connected to the internet.
Cisco is right in the center of this revolution, and just proved its dominance after reporting a strong 2 cent earnings beat from a 51 cent basis. It is seeing increased demand on switches and routers, causing higher than expected revenues.
Will this stock be in the center of rising revenues for the future, too? To find out, Cramer spoke with Cisco's chairman and CEO John T. Chambers.
"I think Europe is in a return state…We are talking about how to bring this connectivity to countries and businesses," said Chambers "You will see countries in Europe move faster than the U.S. in terms of digitizing their whole economy, digitizing their business, changing their GDP growth, job creation, healthcare and education. We are right in the sweet spot of all those."
Chambers confirmed that they saw 20 percent growth in southern Europe, 17 percent in the United Kingdom and 12 percent in Germany.
"It is business outcomes, not selling routers and switches," said Chambers.
The CEO commented on how quickly Europe has embraced digitization, and is actually ahead of the United States.
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"What you are seeing in Europe however is the leaders, Germany and the UK; they all understand that digitizing is the number one goal. It allows job creation, healthcare, education and a new generation for their enterprise business. This is something the U.S. has to learn."
Ultimately in the future, Chambers anticipates that digitization will create an impact of up to 10 times on the current state of the internet. He predicted that every country, every business and every car will ultimately be digitized.
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