Cisco Confidential 1© 2013 Cisco and/or its affiliates. All rights reserved.TM “TORONTO 2015” and logo are trademarks of the Toronto Organizing Committee for the 2015 Pan American and Parapan American Games used under license.

Fuelling Innovation with the Internet of Everything

Rick Huijbregts @CiscoSCREVP Industry Transformation

© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 2

Three Major Trends Are Reshaping the Global Landscape

Economics Environmental/Energy

By 2030 world energy demand will

increase by 40%

Social Demographics

Aging

Shrinking

Hypergrowth

© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 3

Ken Olson, Digital, 1977

“There is no reason for any individual to have a computer in his home”

@CiscoSCRE #CiscoSmartTO

© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 4

Then…and now.

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Pace of Innovation Accelerating

Source: IBM’s Global Innovation Outlook, Joseph Jacobsen, Organizational and Individual Innovation Diffusion, 2004

0

Cellular PC Internet Television Radio VCR Electricity Telephone Automobile

200 30 40 50 60 70 80 90 100 110 120 130 1400

20

40

60

80

100

10

Perc

en

tag

e P

en

etr

ati

on

of

Pote

nti

al

Worl

d M

ark

ets

@CiscoSCRE #CiscoSmartTO

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The average lifespan of a company listed in the S&P 500 has decreased from 67 years in the 1920’s to 15 years today.

Richard FosterYale University

© 2013 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 7

2012 created more information than the past

5000 years combined Source: Telefonica I&D 2011

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from 2010 to 2020, the digital universe will grow 50-fold

Source: IDC Digital Universe in 2020 Report

© 2013 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 9

Evolution of the InternetB

usi

nes

s a

nd

So

cie

tal

Imp

act

Intelligent Connections

• Email• Web

Browser• Search

ConnectivityDigitize Access to

Information• Social• Mobility• Cloud• Video

ImmersiveExperiences

Digitize Interactions (Business & Social)

• E-commerce• Digital Supply

Chain• Collaboration

NetworkedEconomy

Digitize BusinessProcess

• Sensors• M2M• Wearables• Big Data• Analytics

Internet ofThings

Connecting

The Unconnected

New Breed Apps & Interfaces

Embedded / Seamless

Wearable Devices

Big Data Wisdom

Predictive

Enhance Outcomes

People

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Devices You Can Hardly See….Smart Dust

Ultra low-power processor

Pressure sensorMemoryThin-film batterySolar cellWireless radio with antenna

Size of a grain of salt

250x250 resolutionDisposableMedical and security applications

Computer (1x1x1mm)Camera (1x1x1mm)

MEMS sensor (0.05 x 005 mm)

MEMS: Micro-electro-mechanical systems

Represents 4th generation sensor

Sources: Cisco IBSG, 2011; University of Michigan, 2011; Fraunhofer, 2011; Wikipedia, 2011

© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 11

When we say “everything”, we mean “everything”

© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 12

The Internet of Everything – “Industrialization of the Internet”

50

2010 2015 2020

Billions (devices)

0

40

30

20

10

50Billion“Smart Objects”

25

12.5

7.26.8 7.6

Inflectionpoint

World PopulationSource: Cisco IBSG white paper “The Internet of Things”, April 2011.

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Value at Stake by Geography and Industry

Initial Top 6 Contributing Verticals

Manufacturing 27%

Retail Trade 11%

Information 9%

Finance / Insurance 9%

Healthcare (private sector only) 7%

Education Service (private sector only) 6%

Value at Stake ~ $14.4T

Source: Cisco Internet Business Solutions Group, 2013

US32%

Canada3%

$400B

Europe30%

China12%

Japan5%

RoW18%

© 2013 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 14

Today’s Students Are Preparing for

Jobs That Don’t Yet ExistSource: Forbes

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Richard FosterYale University

By 2020, more than three quarters of the S&P 500 will be companies that we have not heard of yet.

© 2013 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 16

Changing Role of IT

The Only Constant is Change

Business Implications

Growth & Productivity

Opportunities

User Experience &Expectations

New BusinessModels

GlobalizationSecurity & Regulatory Compliance

Technology Transitions

New Breed of AppsMobility / Video Cloud Internet of Things Big Data & Analytics

© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 17

Connecting the unconnected…

Solve Environmental Challenges Thrive in Smart Communities

Focus on Improved Safety Achieve Energy Efficiency

… to change the way the world works, lives, plays, and learns

Live Enriched, Healthier Lives

Redefine Work Models

@CiscoSCRE #CiscoSmartTO

© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 18

Connecting the unconnected…

Solve Environmental Challenges Thrive in Smart Communities

Focus on Improved Safety Achieve Energy Efficiency

… to change the way the world works, lives, plays, and learns

Live Enriched, Healthier Lives

Redefine Work Models

@CiscoSCRE #CiscoSmartTO

© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 19

Connecting the unconnected…

Solve Environmental Challenges Thrive in Smart Communities

Focus on Improved Safety Achieve Energy Efficiency

… to change the way the world works, lives, plays, and learns

Live Enriched, Healthier Lives

Redefine Work Models

@CiscoSCRE #CiscoSmartTO

Citizen Business GovernmentInfrastructure

© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 20

Connecting the unconnected…

Solve Environmental Challenges Thrive in Smart Communities

Focus on Improved Safety Achieve Energy Efficiency

… to change the way the world works, lives, plays, and learns

Live Enriched, Healthier Lives

Redefine Work Models

@CiscoSCRE #CiscoSmartTO

© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 21

Connecting the unconnected…

Solve Environmental Challenges Thrive in Smart Communities

Focus on Improved Safety Achieve Energy Efficiency

… to change the way the world works, lives, plays, and learns

Live Enriched, Healthier Lives

Redefine Work Models

@CiscoSCRE #CiscoSmartTO

32% meetings travel avoided

$1.4b travel savings

$ 535M productivity

771k metric ton GHG

© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 22

Connecting the unconnected…

Solve Environmental Challenges Thrive in Smart Communities

Focus on Improved Safety Achieve Energy Efficiency

… to change the way the world works, lives, plays, and learns

Live Enriched, Healthier Lives

Redefine Work Models

@CiscoSCRE #CiscoSmartTO

© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 23

Connecting the unconnected…

Solve Environmental Challenges Thrive in Smart Communities

Focus on Improved Safety Achieve Energy Efficiency

… to change the way the world works, lives, plays, and learns

Live Enriched, Healthier Lives

Redefine Work Models

@CiscoSCRE #CiscoSmartTO

© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 24

The citizen at the center of it all.

@CiscoSCRE #CiscoSmartTO

Next gen Workforce, or the New Boss?

New Breed of AppsMobility / Video Cloud Internet of Things Big Data & Analytics

© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 25

What we have all in common: THE WORKPLACE

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devices

mobility

cloud

video

THE WORKPLACE

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devices

mobility

cloud

video

THE WORKPLACE

© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 28

devices

mobility

cloud

video

cost

utilization

productivity

brand

sustainabilityTHE WORKPLACE

© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 29

devices

mobility

cloud

video

cost

utilization

productivity

brand

sustainabilityTHE WORKPLACE

© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 30

devices

mobility

cloud

video

cost

utilization

productivity

brand

sustainabilityTHE WORKPLACE

© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 31

devices

mobility

cloud

video

cost

utilization

productivity

brand

sustainabilityTHE WORKPLACE

© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 32

devices

mobility

cloud

video

cost

utilization

productivity

brand

sustainabilityTHE WORKPLACE

© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 33

Interactive Media

Digital Signage

Wireless

Tenant Services

High Speed Internet

Unified Communications

IP Telephony

Building Innovation

What about our buildings?

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Interactive Media

Digital Signage

Wireless

Tenant Services

High Speed Internet

Unified Communications

IP Telephony

Building Services

HVAC Sensors

Fire Control

Elevators

Lighting

Energy Management

Video Security

Maintenance Management

24/7 Monitoring

Building Innovation

© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 35

```

Interactive Media

Digital Signage

Wireless

Tenant Services

High Speed Internet

Unified Communications

IP Telephony

Building Services

HVAC Sensors

Fire Control

Elevators

Lighting

Energy Management

Video Security

Maintenance Management

24/7 Monitoring

`Monitoring

`Control

Submit

Dashboards

Building Innovation

IoE for Real Estate value

exceeds $ 428 B.

© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 36

Amazing Things Happen When You Connect the Unconnected

of the World is Still Not Connected

© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 37

© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 38

Global OpenStandards

Visionary Leadership

SmartRegulation

New Ecosystem

Public Private Partnerships

What Will it Take?

Creation of a New Industry

@CiscoSCRE #CiscoSmartTO

© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 39

Mahatma Ghandi

“The future depends on what you do today”

@CiscoSCRE #CiscoSmartTO

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The Internet of Everything

Are you ready?

© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 41

Questions? @CiscoSCREThank you.