john chambers - cisco chambers . chairman & ceo . ... but also challenges / hurdles ... iot...

© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 1 © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 1

John Chambers Chairman & CEO

February 21, 2013

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

• Big Picture… Economy, Profits, Society, Environment

• Business Models… Value for My Organization / Me

• Private-Public Partnerships

• Current Status on Implementation

• How Articulate / Educate My Organization

• Opportunities… But Also Challenges / Hurdles

• My Organizations Role… Capturing Opportunities


The Only Constant is Change

Definition

Value at Stake & Use Cases

Technology Implications / Solutions

Our Value Proposition… Cisco Example


The Only Constant is Change


Growth & Productivity

Opportunities User Experience & Expectations

New Business Models Globalization

Security & Regulatory Compliance

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


Bus

ines

s an

d S

ocie

tal

Impa

ct

Intelligent Connections

• Email • Web Browser • Search

Connectivity Digitize Access to

Information • Social • Mobility • Cloud • Video

Immersive Experiences Digitize Interactions (Business & Social)

• E-commerce • Digital Supply Chain • Collaboration

Networked Economy

Digitize Business Process

Connecting: • People • Process • Data • Things

Internet of Everything

Digitize the World

© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 7 Source: Cisco IBSG, 2012

Internet of Things

“Fixed” Computing

Mobility / BYOD

Internet of Everything


Definition


“ The Internet of Everything brings together people, process, data and things to make networked connections more relevant and valuable

than ever before - turning information into actions that create new

capabilities, richer experiences unprecedented economic

opportunity for businesses, individuals and countries.”


Intelligent Connections

Process

Data Things

People

Intelligent Network


Source: Cisco Internet Business Solutions Group, 2012

Delivering the right information to the right person, machine at the right time.

Leveraging data for decision making.

Physical devices and objects connected to the Internet and each other.

Connecting people in more valuable ways.


Availability, comprehensiveness, accuracy, timeliness, relevance, and richness

Source: Cisco Internet Business Solutions Group, 2012

Context awareness, increased processing power, greater sensing abilities

In addition to Metcalfe’s law, value comes from:


Value at Stake

© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 14 Source: Cisco IBSG, 2013

The Internet of Everything has the potential to grow global corporate profits by 21% in aggregate by 2022.

What Fuels Internet of Everything Value At Stake?

Supply Chain/Logistics Innovation Customer

Experience Employee

Productivity Asset

Utilization


55%

45%

Source: Cisco IBSG, 2013

While machine-to-machine connections are increasingly important, person-to-person and person-to-machine still represent the majority of the Value at Stake in the IoE Economy.

$0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000

P2P

M2P or P2M

M2M


Initial Top 6 Contributing Verticals

Manufacturing

Retail Trade

Information

Finance / Insurance

Healthcare (private sector only)

Education Service (private sector only)

Value at Stake ~ $14.4T


US 32%

RoW 18%

Japan 5%

China 12%

Europe 30% Canada

3%


Value at Stake: Use Cases



• 21 use cases… Value at Stake (bottom-up approach)

• Examples follow

• Industry-specific & cross-industry use cases

• Transform companies… benefit IoE

• The time is now

Smart Buildings

Connected Private Education

Smart Factories


Connecting sensing, measurement, and controls

in real time improves reliability, cost, and alignment between

supply and demand

2013 Current state

2022 Potential with IoE

Vulnerability to faults Automated detection and

self-healing improve reliability of the electric network

One-way flow of electricity Ability to shape electric flows

enables more flexibility, distributed generation

Production calibrated for peak demand requires reserves,

causes inefficiencies

Demand-side management improves generator utilization and

grid efficiency

Variability in renewable energy sources prevents adoption

Enables more sustainable energy sources such as wind and solar



More intelligent design of machines; greater control of

instrumentation and production conditions

2013 Current state


Automated assembly machines are expensive and complicated to

create and install

Reduced costs as automated tools become less expensive to manufacture / implement

Inflexible and costly product-line changes

Increased revenues from greater product variations

Ad hoc product quality testing Improved quality with sensors to monitor product specs

Less-skilled employees for production

More highly skilled production and managerial employees are needed

Inefficient use of key inputs of production

Reduced waste from more efficient usage of key materials,

including energy




2013 Current state


Wastage leads to high energy bills (usage not based on occupancy,

environment)

Energy savings by using sensors and energy-efficient systems

Physical monitoring of building systems

Remote monitoring enables labor savings and staff productivity

No scaling of building management infrastructure across facilities

Costs savings by leveraging shared infrastructure and open protocols

Inconvenience to tenants due to breakdowns and repairs

Continuous monitoring and timely maintenance improve

equipment life

Each facility operation coexists independently

All systems are integrated and communicate centrally

Lower energy costs, lower management and maintenance

costs, lower CapEx


Reduced time in traffic; lower accident rate; lower fuel, insurance,

and repair costs

2013 Current state


Time, money, and fuel lost due to traffic congestion

Traffic management and optimization of road network

lower congestion

Reduced fuel efficiency due to sudden acceleration and braking

Vehicles intelligently adjust driving speeds, improving fuel efficiency

High proportion of accidents Vehicle-to-vehicle / infrastructure

communication lowers accident rates

High vehicle insurance costs Insurance premium based on actual driving pattern of individuals

Ad hoc routing of vehicles Optimized delivery routes



• Where are you Today on IoT IoE?

• IT’s Role Enabling IoE

• Requires Process / Cultural Changes

• Security and Privacy Capabilities a Must

• Organizational Structures to Support IoE


Technology Implications / Solutions


Ubiquitous Connectivity

Application anywhere, anytime

Things (sensors, actuators, tags) everywhere

Mobility / Wireless

New Breed of Apps

People to M2M communications

BYOD

Massive Scalability

Smarter business processes

Consumerization of IT

Cloud

Internet of Things

Growing Requirements

IT B

udge

t Shi

fts to

Lin

es o

f Bus

ines

s


Ubiquitous Connectivity

Application anywhere, anytime

Things (sensors, actuators, tags) everywhere

Mobility / Wireless

New Breed of Apps

People to M2M communications

BYOD

Massive Scalability

Smarter business processes

Consumerization of IT

Cloud

Internet of Things

Growing Requirements

IT B

udge

t Shi

fts to

Lin

es o

f Bus

ines

s

Programmable

Automated and Dynamic

Aware

Agile

Secure


Configurable Networks

Apps-aware Networks

Command Line Interface

Managed Networks

Orchestrated Networks

Network-aware Apps

Programmatic Interfaces

Automated Networks


Data Center

Intelligent Network

Cloud


Our Value Proposition… Cisco Example


Services

Cisco Unified Platform

Industry Solutions & Apps

Business Processes &

Enterprise Apps Cisco Video & Collaboration

3rd Party & Open Source EcoSystem

Unified DC UCS | Nexus

Core N/W ENT | SP | COMM

Access WIRED | MOBILE

ASICs + Software + Hardware + Services Application-Centric Intelligent Network

Security Access Control Content Aware Context Aware Threat Aware


Connected Industry

• 1.4T IoT Value at Stake Globally

• 13B B-to-B Connections by 2015

• Auto Plant… 50K IP-ready Devices

• Connected Vehicles, Defense, Industrial/M2M, Transportation

Smart + Connected Communities

• $1.1T IoT Value at Stake Globally

• Education, Energy, Sports & Entertainment, Safety, Healthcare, Real Estate, Government

• 9 Iconic Projects / 100s of Projects

Connected Energy

• $670B IoT Value at Stake Globally

• BC Hydro… Vancouver

• 1,700 Poletop Routers

• 1.6M Smart Meters


1) 2013… Inflection Point

2) Activity… in Pockets of Companies Almost as Many Questions… as Answers

3) IoT Emerging Verticals… Buying Centers

4) Leadership IoT… Alliances & Standards


• Standardized IP across all industries IPv6

• Mainstreaming Cloud Computing

• Explosion / Monetization… Software Apps

• Pushing Intelligence… App Layer Network

• Big Data & Analytics

• Network capacity… affordable, removing bottlenecks on information flows


• Create Partnerships… Propel Industry Forward

• Actionable Industry Roadmap

• Be a Part of the Internet of Things World Forum… Sponsor, Speaker, Demo

• Educate your Organization on Opportunity

• Think Big!


Thank you.


of the World is Still

Not Connected

john chambers - cisco chambers . chairman & ceo . ... but also challenges / hurdles ... iot...

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