Internet of Everything - Cisco · Internet of Everything Capturing the Accelerated Opportunity Anil...
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Internet of Everything Capturing the Accelerated Opportunity Anil Menon Deputy Chief Globalization Officer, Cisco & President , Smart+Connected Communities March 24, 2015
Transcript of Internet of Everything - Cisco · Internet of Everything Capturing the Accelerated Opportunity Anil...
Internet of EverythingCapturing the Accelerated OpportunityAnil MenonDeputy Chief Globalization Officer, Cisco & President, Smart+Connected Communities
March 24, 2015
Technology ShiftsEconomicsSocial Demographics
Aging / Shrinking
Hypergrowth
MAJOR TRENDS RESHAPING GLOBAL LANDSCAPE
Value Creation/Productivity
Improvements
Talent Mismatch/ Competition for Talent
Energy Management/ Urbanization
Access to Healthcare and Education
Urbanization
Computing Costs Decline,
Mobile & Cloud Solutions
HypergrowthShrinkingAgingElderly (65+ yrs.) 2000 2050
World 6.8% 16.2%USA 12.4% 21.6%China 6.8% 23.3%Sweden 17.2% 24.1%Canada 12.6% 25.5%
Netherlands 13.6% 26.0%
Switzerland 15.4% 26.0%Europe 14.8% 27.4%Poland 12.2% 29.9%Singapore 7.2% 32.6%Germany 16.4% 32.5%Italy 18.4% 33.3%S. Korea 7.3% 34.2%Japan 17.2% 37.8%
2050 Estimate Millions % Decline
from 2000
Europe 691.0 (5%)
S. Korea 44.0 (5%)
Portugal 10.0 (9%)
Slovakia 4.9 (9%)
Hungary 8.9 (13%)
Germany 70.5 (14%)
Poland 32.0 (17%)
Japan 101.6 (20%)
Russia 116.0 (21%)
Romania 17.2 (22%)
Ukraine 35.0 (28%)
Bulgaria 5.3 (33%)
2050 Estimate Millions % Growth
from 2000
World 9,149.9 50%Brazil 222.8 28%Indonesia 293.4 37%India 1,613.8 55%Egypt 129.5 85%Philippines 146.1 88%
Saudi Arabia 43.6 110%
Pakistan 335.1 126%Nigeria 289.0 132%Iraq 63.9 160%Ethiopia 173.8 165%Congo 147.5 190%Yemen 53.6 195%Afghanistan 73.9 260%Niger 58.2 428%
Biggest social shifts in history
The World’s Top 10 Economies
Source: World Bank/Angus Maddison. The World Economy: Historical Statistics; World Bank; IMF
Massive Economic Rebalancing
2010U.S. 24.3%Japan 8.7%China 8.6%Germany 5.7%France 4.6%U.K. 3.7%Italy 3.6%Brazil 2.7%Spain 2.5%Canada 2.3%
1820China 28.7%India 16.0%France 5.4%U.K. 5.2%Prussia 4.9%Japan 3.1%Austria 1.9%Spain 1.9%U.S. 1.8%Russia 1.7%
2050China 32.7%U.S. 17.8%India 17.4%Brazil 5.3%Mexico 4.3%Russia 4.0%Indonesia 3.2%Japan 3.1%U.K. 2.4%Germany 2.3%
Japan 3.1%
1999U.S. 30.0%Japan 14.5%Germany 6.6%U.K. 4.7%France 4.7%Italy 3.8%China 3.8%Spain 2.0%Canada 2.1%Mexico 1.6%
WHAT IF…
Would still address your most pressing challenges in
the same way?
What if you had an effective and affordable
digital infrastructure…
$0.04/ MM
$ p
er 1
MM
tra
nsi
sto
rs
$222 / MM
1992 2014
AFFORDABLE DIGITAL INFRASTRUCTURE: COMPUTING
source;: http://deloitte.wsj.com/cfo/files/2013/10/ExpoTech_report.pdf
1992 2014
Pri
ce p
er g
igab
yte
($)
$0.03 / GB
$569 / GB
Cloud storage per month based on 1TB service agreement: . Source - http://aws.amazon.com/s3/pricing/
AFFORDABLE DIGITAL INFRASTRUCTURE: STORAGE
1998 2015
$ /
Meg
abit
s p
er s
eco
nd
$0.63/Mbps
$1200/Mbps
2005 2010
$75/Mbps
$5/Mbps
Source: DrPeering.net
AFFORDABLE DIGITAL INFRASTRUCTURE: BANDWIDTH
INCREASINGLY EVERYTHING WILL BE CONNECTED TO EVERYTHING
Rapid rate of adoption: 5x faster than
electricity or telephony.
50-75Billion
“Smart Objects”
25
12.5
Timeline
Billio
ns o
f sm
art
obje
cts
0
40
30
20
10
50
60
70
7.26.8 7.6
World population(in billions)
Inflectionpoint
The New Essential Infrastructure
VIDEO CONTINUES TO DOMINATE
201720122007Source: Cisco Visual Networking Index
Video TrafficGlobal Internet Traffic (Monthly)
3 Exabytes/month
44 Exabytes/month
121 Exabytes/monthof all IP Traffic will be VIDEOby 2017
73%
Video was 60%of traffic in 2012
Source: Apple, Google, Windows Mobile, Cisco Analysis, NY Times
AN EXPLOSION OF APPLICATIONSCisco Confidential 12
©2014 Cisco and/or its affiliates. All rights reserved.
2010
iPhone Apps Alone
Apple & GoogleApps Worldwide
2020
AppsWorldwide
2007
Total Mobile Apps
. 15,000 Apps
released worldwide every week
EVERYDAY LIFE IS BECOMING CONNECTED...
Based on 61Real-World Use Cases
Value Sources
$14.4TPrivate Sector
AssetUtilization
$2.5T
Supply Chain/ Logistics$2.7T
Innovation/Revenue$3.0T
Customer Experience
$3.7T
EmployeeProductivity
$2.5 T
$4.6TPublic Sector
$19.0*Trillion
ECONOMIC VALUE
Only 1% of the World is Connected Today
The Internet of Everything Opportunity is here NOW
IOE VALUE AT STAKE $19T KEY VERTICAL OPPORTUNITIES
$1.5T$1.9T $504B $1.3T $106B
RetailManufacturing Oil + Gas Finance Healthcare
Industry Segment Type of SavingsEstimated Value Over 15 Years
(Billion nominal USD)
Aviation Commercial 1% fuel savings $30B
Power Gas-fired Generation 1% fuel savings $66B
Healthcare System-wide 1% reduction in system inefficiency $63B
Rail Freight 1% reduction in system inefficiency $27B
Oil & Gas Exploration & Development 1% reduction in capital expenditures $90B
Total $276B
INTERNET OF THINGS:WHAT IF...WE DELIVERED JUST A 1% IMPROVEMENT?
• Source: “Industrial Internet: Pushing the Boundaries of Minds and Machines,” GE, November 26, 2013
MUST PEOPLE ALWAYS GO TO THE DOCTOR…?
1.6 M people still die of pneumococcal diseases every year
In 95% of countries, the cost of healthcare exceeded the rate of
general inflation
18 M health privacy breaches in the last two years alone
What if...quality healthcare were delivered at home?
HealthcareValue at Stake
$106 BConnected Healthcare
Faster diagnoses shorter hospital stays
Electronic patient records consolidation fewer errors, standardized treatment
Wider treatment and monitoring options better patient outcomes and satisfaction
Cisco Confidential 19© 2013-2014 Cisco and/or its affiliates. All rights reserved.
1% improvement in overall equipment effectiveness
3 - 4% profitability
WHAT IF...WE DELIVERED NEAR ZERO UNPLANNED DOWNTIME?
Connected Factory Automation
Faster diagnostics lower downtime
Flexible manufacturing higher revenue
Converging motion, safety, data, video and wireless higher productivity
ManufacturingValue at Stake
$1.95T
WHAT IF...WE DELIVERED SAFE, SECURE AND EFFICIENT MINES?
$6M in lost productivity per reportable incident
Connected Mines
Enable real time visibility Avoided incident management costs
and penalties Monitoring and control of multiple
assets and locations from one site Remote access to critical expertise,
which may not be available in all areas
MiningValue at Stake
$4.7 B
Instantaneous, safe response to untoward incidents
Simultaneous monitoring of physically disperse assets from single location
WHY DO WE HAVE TRAFFIC?
WHAT IF...WE COULD BOOST ROAD CAPACITY AND EFFICIENCY?
4.8 billion hours of traffic delay loss of $101B in the US alone
1 billion cars on the road today...4 billion by 2050 $100B+ lost in congestion
2.9 B gallons of wasted fuel (US) 1/3 of green houses gases caused by
transportation
Deliver timely, accurate information about traffic conditions to drivers
Enhance reliability of the network infrastructure in harsh environmental conditions
Improve network scalability to support new communication and safety applications
Connected Transportation
TransportationValue at Stake
$347 B
How do we EDUCATE the Next Generation of Surgeons, Engineers, and Cellists…
wherever they are?
In Beijing: “Taikonaut” (astronaut) Wang Yaping teaches science from outer space...
In Songdo, South Korea: In-home 1:1 tutoring by native-English-speaking
teachers in Michigan via TelePresence.
In Pennsylvania & Ghana: Hershey “Learn to Grow” Ghana Distance Learning Program
THE PACE OF CHANGE IS ACCELERATING...
Point-of-SalePrintAdvertising AutomobilesHotels
Bookstores Taxis Music
Innovation Speed: 2x X2
IT Industry DisruptionClouds: Private, Hybrid, Public, FogSecurity ChallengesMobilityBig Data & AnalyticsBusiness + Technology Models
EVERY CITY, COUNTRY,
COMPANY, INDUSTRY
DIGITALInternet of Everything: 5-10 times impact of the Internet to
date
Integrated Operations
Center
Grid
Ambulances
StadiumHospital
Optimization
CommsNetwork
Optimization
Home Energy
Management
Digital Signage
Traffic FlowOptimization
FactoryOptimization
LogisticsOptimization
TrafficCamerasAutomated
Car System
City, Country, Company, Industry with Digital Overlay
Intelligent Medical Devices
Connected
Cloud andServices
Platform+
Smart
FACTORY
HIGHWAY
CITY
HOSPITAL
FACTORYSMARTCITY
SMART
HOSPITALSMART
Intelligent
Connected
HIGHWAYSMART
ASEAN PRIVATE SECTOR IOE VALUE AT STAKE: ~$373.3B
OtherASEAN
Countries
Myanmar $12.8
$21.2BCambodia $3.4 Brunei $2.8 Lao P.D.R. $2.2
Singapore
Smart FactoriesConnected Marketing / AdvertisementFuture of WorkPhysical/ Logical Security
$48.1B
Philippines
Smart FactoriesConnected Marketing / AdvertisementFuture of WorkPhysical/ Logical Security
$36.6B
Vietnam Smart FactoriesConnected Marketing / AdvertisementSmart FarmingPhysical/ Logical Security
$25.8BMalaysia Smart Factories
Connected Marketing / AdvertisementPhysical/ Logical SecurityTime-to-Market
$53.5B
Thailand Smart FactoriesConnected Marketing / AdvertisementPhysical/ Logical SecurityTime-to-Market
$75.5B
Indonesia
Smart FactoriesConnected Marketing / AdvertisementPhysical/ Logical SecurityTime-to-Market
$112.6B
Japan Smart FactoriesConnected Marketing/ AdvertisementTime-to-MarketPhysical/ Logical Security
$761.0B
Country |Top 4 Verticals / Cross-verticals| Total V@S Country | Top 4 Verticals / Cross-verticals| Total V@S
Total ASEAN V@S $373.3B
A new dawn...
…or a false beginning?
Thomas Edison
THE EDISON IDELIA…
THE IPOD
THE ELECTRIC GRID – EDISON’S DESIGN 1892
THE ELECTRIC GRID – TODAY
WHAT NEW QUESTIONS COULD YOU BE ASKING...
…to address YOUR company’s challenges in new ways?
Email: [email protected]: @anil_cisco
