John Chambers - Cisco Chambers . Chairman & CEO . ... But Also Challenges / Hurdles ... IoT Emerging...
Transcript of John Chambers - Cisco Chambers . Chairman & CEO . ... But Also Challenges / Hurdles ... IoT Emerging...
© 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
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• 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
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The Only Constant is Change
Definition
Value at Stake & Use Cases
Technology Implications / Solutions
Our Value Proposition… Cisco Example
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The Only Constant is Change
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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
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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
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Definition
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“ 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.”
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Intelligent Connections
Process
Data Things
People
Intelligent Network
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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.
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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:
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Value at Stake
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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
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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
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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
Source: Cisco IBSG, 2013
US 32%
RoW 18%
Japan 5%
China 12%
Europe 30% Canada
3%
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Value at Stake: Use Cases
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Source: Cisco IBSG, 2013
• 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
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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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More intelligent design of machines; greater control of
instrumentation and production conditions
2013 Current state
2022 Potential with IoE
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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Source: Cisco IBSG, 2013
2013 Current state
2022 Potential with IoE
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
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Reduced time in traffic; lower accident rate; lower fuel, insurance,
and repair costs
2013 Current state
2022 Potential with IoE
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
Source: Cisco IBSG, 2013
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• 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
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Technology Implications / Solutions
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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
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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
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Configurable Networks
Apps-aware Networks
Command Line Interface
Managed Networks
Orchestrated Networks
Network-aware Apps
Programmatic Interfaces
Automated Networks
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Data Center
Intelligent Network
Cloud
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Our Value Proposition… Cisco Example
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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
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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
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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
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• 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
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• 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!
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Thank you.
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of the World is Still
Not Connected