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TOMORROW Starts Here

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$14.4T IoT Value at Stake

over the next decade

“Fixed Computing” Mobility/BYOD Internet of Things Internet of Everything

200M

10B

50B Things

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People-to-People + People-to-Machine + Machine-to-Machine

Process

Data Things

People

Intelligent

Network

Operational Efficiencies Smarter Business Process Economic Growth

IoT Drivers

Safety and Security Workforce Optimization Regulatory Mandates

UTILITIES: Grid modernization and workforce optimization

PROCESS MANUFACTURING: Proactive maintenance and safety/security in remote operations, logistics

TRANSPORTATION + LOGISTICS: Maintenance and fleet tracking and new customer experiences

DISCRETE MANUFACTURING: Comprehensive security, better asset utilization, faster reaction times

GOVERNMENT/DEFENSE: Response to security threats, natural disasters, secure operations and safety

AUTOMOTIVE: Driver safety and decision making

RETAIL: Secure operations, new customer experiences

HEALTHCARE: Patient monitoring, tracking equipment

IoT Business Opportunities

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More intelligent design of

machines; greater control of

instrumentation and production

conditions

2013 Current state

2022 Potential with IoT

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

Source: Cisco IBSG, 2013

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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

Source: Cisco IBSG, 2013

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…to a Critical Part of the Enterprise Infrastructure

From Basic Connectivity...

…to Open Standards

From Proprietary Standards...

…to Converged, Secure and Collaborative Operations

From Disparate IT and OT Networks…

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IT

Industries

Safety

and

Security

Connected

Home Energy

B2C Smart

Cities

Industry

Innovation:

Business

Processes and

Operations

Networks Computing & Storage

Data Analytics

Control Systems

Sensors and Devices

Industry

Innovation:

Business

Processes and

Operations

Networks Computing & Storage

Data Analytics

Control Systems

Sensors and Devices

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Highly Unreliable Networks x10-12 error rate on optical fiber

compared to 40% packet loss

Limited resources: power,

memory and CPU processing x125k less memory than basic Mac Book

Extremely High Scale Network

(100’s of millions of devices) e.g., 2M smart meters in Vancouver

Bandwidth Constraints x100 less than Wi-Fi (shared too!)

Innovation is required to overcome these challenges—

A new industry-agnostic, distributed network architecture and new protocols

• Safety

• Latency

• Virtual Machine Control

Networks, Computing, Storage

Data Analytics

Control Systems

Sensors and Devices

Cisco Architectures

Cloud Intelligent Network Data Center

First Step:

Connectivity Second Step (Today):

Optimized for IoT Third Step:

Services for IoT

Fourth Step:

Enabling the Internet of Everything

Ruggedized Infrastructure

M2M

Sensor

Enablement

Mobility

Security

New Protocols

Distributed Computing and Storage

Distributed

Data Management

Cloud Services

Distributed

Services

Adaptive networks

Application Enablement

Distributed Applications

Connected Grid

IE 2000 IE 3000

M2M ISR Gateway Router

Process Manufacturing

Discrete Manufacturing

Transportation Defense Utilities

Plantwide Ethernet, Intelligent Transportation, Smart Cities, S&C Refinery, Smart Connected Vehicle, Smart Grid

Lightweight IPv6 Stack (RPL, COAP, 6lowpan, optimized low-power link layers, lightweight OS)

Data Center/Virtualization

Industrial Applications: BYOD, Physical Security, Remote Expert

Ruggedized Wireless AP

1550 Series

Embedded Services Routers & Switches

SP Managed Services and SP Service Aggregation Layer (ASR 5K)

Industrial Cyber Security

CGR 1000 & 2000 Series

CGS 2500 Series

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Cisco’s Approach to IoT

“Customer-In” Approach

• Understanding of key business care about and pain points

• Relevance to LOB leaders/ CXOs

Products/Technologies

• Best-in-class ruggedized products

• Smart solutions for verticals

• IoT architectures

Strategic Partnerships

• Industry partners

• Vertical software / service partners

• Service providers

Ruggedized Wireless AP

Industrial Routers & Switches

Industrial Security

Ruggedized

Products

Industrial Smart

Solution for Mfg

Transportation Smart Solution

Industrial Smart

Solution for Procss

Connected Vehicle

Connected Machine

Smart

Solution

Pervasive Cyber

Security

Scalable Routing

Big Data Management

IoT

Enablers Time Sync

Process Mfg. Oil & Gas

Transportation/ Defense

Discrete Mfg.

Machine to Machine

Verticals

Industry

Partners Advanced Services

Hardened

Mobile M2M Gateway

Connected Vehicle

Deterministic Ethernet

Guaranteed Delivery

Healthcare Retail

IP Cameras

Video Surveillance

SP services

Connected Grid

M2M

Mobile SPs

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Energy and Utilities Grid Modernization

Connecting Grids to Digital Communications

Smart Meters

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Energy and Utilities Grid Modernization

Challenge

• Current electric grid design is inefficient

• Piecemeal upgrades inefficient and don’t allow for new applications

• Modernize existing infrastructure with SCADA and telephony services

• Build 10 new substations / year in environmentally demanding areas

Business Value

• Reduced capital and operating costs

• Improved reliability

• Improved efficiency via mobility and field workforce collaboration apps

• Reduced costs through new services like IP telephony at substation

• Improved physical/network security

“[Cisco’s] work is assisting us to transform the

electricity network into a smarter grid.”

-Adrian Clark, Chief Technology Officer, Ausgrid

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Protection and Control Network 802.15.4 sub-GHz RF Mesh or IEEE P1901.2 G3 PLC Mesh

NMS

Transformer Monitoring

Distribution Automation

EV Charging Infrastructure

Work Force Automation

Primary

Substation

Large C&I Meters

HES

Cisco Connected Grid

Router Secondary

Substation

Street Lighting

Serv

ices

Residential Metering

Distributed Generation

Distribution Protection and

Control Network

Data Center /

Energy Mgmt Services

Private Cloud

Enterprise Video,

Voice, Data

Enterprise Cloud

GPRS, 3G,

LTE, WiMax

Ethernet

Op

era

tio

n

Infr

astr

uctu

re

En

d P

oin

ts

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Next-Generation Manufacturing

Cyber and Physical Security

Collaborative Manufacturing

Manufacturing Business Priorities

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Manufacturing Next-Generation Manufacturing

Power Optimization Real-time Performance and Reliability

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Manufacturing Real-time Performance and Reliability

Challenge

• Deploy infrastructure for new mining

projects quickly at reduced costs

• Reduce maintenance times of equipment

• Easily access operational data for

management and security/compliance

• Keep both equipment and network running

Business Value

Bridge on-site process control systems and

business-critical IT decision-making systems

Reduced downtime across facilities

Real-time information on production systems

Standardization = scalability, future-proof

| | CASE STUDY: Plant-wide Industrial Ethernet

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EtherNet/IP, Profinet

Real-Time Control (Profibus DP, PA, Foundation Fieldbus)

Fast Convergence

Traffic Segmentation and Management

Ease of Use

Site Operations and Control

Multiservice Networks

Network and Security Management

Routing

Application and Data Share

Access Control

Threat Protection

Enterprise/IT Integration

Collaboration

Wireless

Application Optimization

Cell/Area Zone

Levels 0–2

Layer 2 Access

Field Bus

Production Zone

Level 3

Distribution and Core

Demilitarized Zone

(DMZ) Firewalls

Enterprise Network

Levels 4–5

Gbps Link for Failover Detection

Firewall (Active)

Firewall (Standby)

DCS MES

Cisco ASA 5500

Cisco Catalyst Switch

Network Services

Cisco Catalyst 6500/4500

Cisco Cat. 3750 StackWise

Switch Stack

Patch Management Terminal Services Application Mirror

AV Server

Cell/Area #1 (Redundant Star Topology)

Drive

Controller

HMI Distributed I/O

Controller

Drive Drive

HMI

Distributed I/O

HMI

Cell/Area #2 (Ring Topology) Cell/Area #3 (Linear Topology)

Cisco Layer 2 Access Switch

Controller

Web Apps DNS FTP

Internet

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Real Solutions Today

Established Track Record

Driving IT – OT convergence

Addressing Technology Challenges

Making IoT easier for you

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Business Process Innovation

Technology Architecture

IT’s Role in IoT— Org Structures

Process and Cultural Changes

Security and Privacy

Where are You?

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Thank you.