Philips and Cisco form global strategic alliance to address EUR 1 billion office lighting market

December 9, 2015

  • Alliance will help enable facilities managers, building owners and office workers to reap the benefits of the Internet of Things in offices
  • Combines Philips’ connected office lighting system with Cisco’s highly secure network technology, includes Cisco Catalyst Switches with Power over Ethernet (PoE) technology 
  • Philips’ connected lighting system will increase energy efficiency, provide data to optimize user comfort and improve the office environment
  • Office workers can personalize their lighting via their smartphones

Amsterdam, The Netherlands – Philips (NYSE: PHG, AEX: PHIA), the global leader in lighting and Cisco (NASDAQ: CSCO), the worldwide leader in IT, today announce a global strategic alliance that will create new value in energy savings, building efficiency and employee productivity, made possible by the Internet of Things (IoT) in modern offices. This alliance brings together Philips’ LED based connected lighting system with Cisco’s IT network to address a global office market estimated to be worth EUR 1 billion¹.


Lighting is everywhere, making it one of the easiest ways to bring the Internet of Things (IoT) to office buildings. Light points in the Philips system, equipped with sensors and software applications can be connected using Cisco technologies. This lighting network creates a pathway for information and helps enable new services.


The global alliance in the Internet of Things will help enable customers to receive the best that the lighting and IT industries have to offer. Philips and Cisco will also collaborate on a joint go-to-market strategy.


Bill Bien, SVP, Head of Strategy and Marketing, at Philips Lighting, said: “Our alliance has two of the world’s biggest and trusted lighting and connectivity brands working together to bring the Internet of Things to life in offices and commercial buildings across the world. Customers will receive the best energy efficient lighting experience in the connected world and be able to use information acquired from their connected lighting system to save energy, reduce costs, improve productivity and optimize their workspace environment. Lighting that is connected to highly secure, reliable IT infrastructure will form the backbone of the smart office of the future.”


Together Philips and Cisco aim to accelerate adoption of this technology in the market and deliver increased connectivity, comfort and efficiency, constituting the most innovative features of a modern building.


Edwin Paalvast, SVP EMEAR, Cisco and executive sponsor of the Cisco – Philips Alliance, said: “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. By partnering with Philips, we are delivering a reliable PoE-powered LED lighting solution using a highly secure IT network.”


Lighting is a logical first-step to bringing IoT to enterprises worldwide. Equipped with sensors, connected lighting becomes intelligent to sense and measure the environment. For example, occupancy sensors in the system can provide information on space utilization to help reduce costs.


Typically, lighting is responsible for 40 percent of a building’s electricity use. Nearly 80 percent in energy savings and reduced building maintenance costs can be realized by managing, integrating and controlling a Philips LED connected lighting system through a network with Cisco.


To make offices more comfortable, office workers can personalize and adjust LED lighting to their preferences and tasks. For mobile access, office workers can use a smartphone app to access other building services through a communications network.


To showcase how Philips and Cisco can work together to unlock the benefits of the IoT in offices, Cisco is installing a state-of-the-art Philips connected lighting system at its Canadian headquarters in Toronto.


“The possibilities of this connected lighting system are endless,” said Richard Lees, Senior Project Manager at CBRE Limited, a commercial real estate and investment services firm. “There are so many capabilities of this system that we haven’t even explored yet.”


¹ Estimate by Royal Philips on the size of the total addressable office lighting market.

For further information, please contact:

Eeva Raaijmakers
Philips Lighting
Tel: +31612350597


Sarah Rich 
Tel: +1 5305212485


About Royal Philips

Royal Philips (NYSE: PHG, AEX: PHIA) is a diversified health and well-being company, focused on improving people’s lives through meaningful innovation in the areas of Healthcare, Consumer Lifestyle and Lighting. Headquartered in the Netherlands, Philips posted 2014 sales of EUR 21.4 billion and employs approximately 106,000 employees with sales and services in more than 100 countries. The company is a leader in cardiac care, acute care and home healthcare, energy efficient lighting solutions and new lighting applications, as well as male shaving and grooming and oral healthcare. News from Philips is located at


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