The Internet of Everything is changing Everything

IOT as the Key enabler for Cities Transformation

Enrico Mercadante,

Cloud and Technical Operation LeaderCisco EMEAR South

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From Hype to Reality…. “Up and to the Right”

Big DataIt’s Official: The Internet

of Things Takes Over

Big Data As The Most

Hyped Technology.8/18/2014

Internet

of Things

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IoT Acceleration Dashboard: 4 Key Components2012-2014

Industry

Environment

Business

Sentiment

Investments Opportunity

Size

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IoT Acceleration Dashboard2012-2014

2012

2013

2014

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IoT Acceleration Dashboard: Industry Environment2012-2014

2012

2013

2014

Industry Environment

Source: Machina Research, Cisco VNI, Cisco Consulting Services, Cisco Connections Counter

Sensors Shipped

4.2B

10B

23.64B

Total Connections

11.2B

8.7B

14.4B+

M2M Connections

2.6B

3.2B

4.1B

Traffic EB/Month

62.47EB

43.57EB

51.16EB

93M

195Mas of August 2014

551M

Identities Exposed

(in Millions)

High Profile

Security Break-ins Total IP Traffic

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IoT Acceleration Dashboard: Business Sentiment2012-2014

Business Sentiment

2012

2013

2014

Standards Bodies

5

7

2

Media Coverage

3,8889,534

45,032+

Google Search Trends

(based on index)

1x

2X

4x

# of Companies

Participating Consortia

7

44

260

Source: Factiva, Google, IPSO-Alliance, Intel

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Internet of Things Reference Model

Levels

Application(Reporting, Analytics, Control)

Data Abstraction(Aggregation & Access)

Data Accumulation(Storage)

Edge Computing(Data Element Analysis & Transformation)

Connectivity(Communication & Processing Units)

Physical Devices & Controllers(The “Things” in IoE)

Collaboration & Processes(Involving People & Business Processes)

Sensors, Devices, Machines,

Intelligent Edge Nodes of all types

Center

Edge

Key Points:

A guiding model for IoT implementations

Creates an IoT technology taxonomy

Helps accelerate IoT deployments

Supported by 20 companies – members of the

architecture workgroup

Endorsed by IIC (Industrial Internet

Consortium)

1

2

3

4

5

6

7

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IoT Acceleration Dashboard: Investments2012-2014

2012

2013

2014

Source: CBI Insights, Cisco Consulting Services Analysis

Investments

VC Investments

$738M

$1,100M

$960Mas of Sept 2014

IoT Start Ups

51

127

189as of Sept 2014

AcquisitionsIoT Developers (est.)

300K

122K

191K

17

27

18$5.3B YTD

$2.9B$302M

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Opportunity Size: IoT Economic Value by Industry

Source: Cisco Consulting Services, 2013

Administration (6%)

35%

30%

25%

20%

15%

10%

5%

0%

0 20,00015,00010,0005,000

De

gre

e o

f Im

pact

(Va

lue a

t S

take

/In

du

str

y S

ize

)

Retail trade (10%)

Information services (4%)

Manufacturing (Energy,

Oil & Gas) (34%)

Public Sector

(20%)Healthcare (5%)

Finance & insurance (4%)

Professional services

Education

Industry Size ($B)

Spheres sized by

amount of Economic Value

2012

2013

2014

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Cloud &Services

Lighting Poles

Municipal Command& Control Center

SmartGrid

BuildingOptimization

CityWiFi

Home Energy Mgmnt

Source: Intel

Traffic Flow Optimization

FactoryOptimization

TrafficCamerasAutomated

Car SystemIntelligent DigitalSignage

ConnectedAmbulances

Parking

INTELLIGENTCITY

INTELLIGENTBuilding INTELLIGENT

HIGHWAY

INTELLIGENTCommunity

A City, Country, with a Digital OverlayConnected Over Industry Standard Platforms

LogisticsOptimization

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Focus Areas for a Smart + Connected Community

Citizen Engagement

A converged City Network that creates a “City Platform” to facilitate urban services

Key city services, street lighting, parking, traffic, water leakage, safety & security, energy and waste management

Inclusive platform to promote citizen engagement to harness and act on new ideas for a city.

Expose What, Where, and When for a community to:

Inform

Protect

Revitalize

Leveraging city assets (e.g.. City street furniture) leveraging the out of home advertising market

Smart Parking, optimize enforcement and participation

Financial model for projected revenue generation with ROI

Economic Growth

Through Innovation

Leveraging the City Platform to attract, retain, and empower start-ups, entrepreneurs, and business to create new urban services.

Local federal state federal compliance requirements

Efficiencies

City Network

New Revenue

Streams

Regulatory

Compliance

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Smart Cities Is a Significant Vertical in the IoE Public Sector

Key Drivers

Economic, Social and Environmental

sustainability

Citizen Focus – Improved quality of

life, enhanced living experience, and

improved safety and security

Access to citizen for Digital services

IOE Drivers – employee productivity,

cost reduction, citizen experience,

and increased revenue

$39BWater

Management

$41BSmart

Parking

$62BVideo

Surveillance

$18BTraffic

$22BSmart

Lighting

$1.9TOpen Data /

Killer Apps

$3 Trillion a New Urban Services Industry

…significant public sector revenue and cost savings opportunities

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Every city department makes investments independently resulting in:

No sharing of infrastructure costs and IT resources

No sharing of intelligence/information, e.g., video feeds, data from sensors, etc.

Waste and duplication of investment and effort

Difficulty in scaling infrastructure management

Waste management

Pollution/environment

City

lighting

Public safety

Parking optimisation

Traffic

management

This fragmented approach is inefficient, has limited effectiveness, and is not economical

Cities Have Traditionally Addressed These Issues in Silos

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City Services

Parking and mobility

Street lighting

Environment monitoring

Location analytics

Citizen Services

Location-based services

Wired and wireless network

management

Remote interactive services

Event

Processing

Notification/

Alarm

Reporting/

Trending

PublishingBillingService

Assurance

Application / Services Enablement

Unified

CollaborationAnalytics

Data

Store

Data Sources and Sensors from Different Field Verticals

High Level Architecture

Smart+Connected City Wi-Fi

Transport / Access / Network / DC Services

Management

Location Analytics

APIsSecurity

Traffic Outdoor LightingPublic

TransportationCrowd Sourcing and

AnalyticsCitizen Interaction

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Barcelona: Smart City$3.6B Value Creation

Smart Citizens

“ We are obsessed with building

quality of life for our citizens. We

needed to break through

organizational siloes and Cisco

became our IoE backbone.

That is our present and the future

of our city.”

Antoni Vives

Deputy Vice Mayor

City of Barcelona, Spain

1,500 New Companies

56,000 New Jobs

Mobile Collaboration: $1.6B

Telework: $199M

Smart Parking: $67M

Smart Water: $58M

Smart Lighting: $47M

Smart Lighting Smart WaterSmart Buses Smart Bus Stop Smart Parking Smart Waste

Revenue Jobs Productivity Cost AvoidanceCitizen Experiences

European

Commission

iCapital Award

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IoT Is Here. Now. And It’s Big … Cities

IoT Dashboard: IoT is Accelerating

IoT… Huge Opportunity for Ecosystem

3 Key Takeaways

2

3

1