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Internet of EverythingCisco Innovation StrategyEVP and Chief Development OfficerPankaj Patel 2010 Cisco and/or its affiliates. All rights reserved.Cisco Confidential# 2010 Cisco and/or its affiliates. All rights reserved.Cisco Confidential#1$5.5B FY12 R&D70,000 Partners23,000 CCIEsBUILDBUYPARTNER25,000+ engineers

13,000+ patentsInvesting Heavily in Innovation160+ Acquisitions 2010 Cisco and/or its affiliates. All rights reserved.Cisco Confidential#Cisco is investing heavily in innovation. In FY12 Cisco spent $5.5 billion on R&D, more than several of our competitors entire top-line revenues. We spend more than 5x the amount of our nearest, pure-play competitor.

I lead a team of 25,000 engineers, and Cisco has been awarded more than 13,000 patents.

In addition to build or internal development, acquisitions and partnering are also integral parts of our innovation model at Cisco.

In cases where we need to move quickly into a new space to help customers achieve their goals, we will consider buying.

We work closely with technology partners to bring innovation to the forefront, we extent our go-to-market through our channel partners, and continue to welcome CCIEs and other experts into the market to ensure our customers needs are met.2Accelerating Innovation

Cross-Team Process Innovation SprintsInternal Venture FrameworkTechnology Fund Innovation Virtual Team

Technology Scouts 2010 Cisco and/or its affiliates. All rights reserved.Cisco Confidential#Were accelerating the pace of innovation at Cisco with a number of initiatives.

Were kicking off a new, cross-team innovation model to ensure that good ideas that come from employees on one team, that may be most appropriate for another part of our business, get the chance to quickly be reviewed and fast-tracked into the part of the business where that idea makes the most sense.

Innovation sprints. Weve recently rolled out across Development an internal online community where engineers can go to get advice and find guides to initiate code sprints or hackathons for a day, a week or focused on solving specific challenge.

More than 70 Cisco employees from different functions, in addition to their day jobs, today serve as technology scouts. Our scouts are tasked with looking as far as 10 years out for new opportunities for Cisco. They have identified over 90 promising technologies or solutions ideas that were now tracking in what we call our Technology Radar. Youll here more about our Technology Scouts and Radar this afternoon.

We continue to invest in our internal venture framework, our Emerging Technologies Group, able to quickly filter ideas, incubate promising ones and, if found to make sense for our customers, than mainstreamed into our Development organization.

The Cisco Technology Fund is an opportunity for Cisco to fund internal innovation through innovative, disruptive product related ideas that aren't currently on the development radar. Tech Fund submissions must be sponsored by a Cisco Distinguished Engineer or Cisco Fellow.

3Technology Implications of IoEUbiquitous ConnectivityApplication anywhere,anytimeThings (sensors, actuators, tags) everywhereMobility / WirelessNew Breed of AppsPeople to M2McommunicationsBYODMassive ScalabilitySmarter business processesConsumerization of ITCloudInternet of ThingsGrowing RequirementsIT Budget Shifts to Lines of Business 2010 Cisco and/or its affiliates. All rights reserved.Cisco Confidential#Padma spoke about the technology implications of the IOE, and the three categories of technology transitions that are driving the emergence of the Internet of Everything: consumerization of IT, Cloud and the Internet of Things.4Cisco Best-of-Breed Innovations: Leading Technology TransitionsIPv6 Standard, 100+ PatentsUnified Access, Seamless RoamingNew Types of ConnectivityIdentity Services EngineCloud ConnectorsRuggedized Routers/SwitchesBYOD Smart SolutionsData Center/VirtualizationGateways: Industrial, MobilityConsumerization of ITCloudInternet of Things 2010 Cisco and/or its affiliates. All rights reserved.Cisco Confidential#In each of these three major, technology transitions, Cisco has led the industry with best-of-breed innovations:

For instance, with regard to Consumerization of IT, Cisco pioneered technologies to enable users to plug devices of their choice into networks already pre-authorized and pre-configured for network access across wired and wireless environments, while letting network administrators retain control to ensure security and prevent data loss.

For the transition to cloud, Cisco enables data and applications to move seamlessly between physical networks and the cloud, and between different kinds of clouds. Regardless of how our customers decide to combine the resources they own with resources they lease in the cloud whether for testing, cloud bursting, or other applications the experience is the same with Cisco Data Center solutions like the Nexus 1000V.

And looking at the transition to the Internet of Things, Cisco introduced new types of connectivity (low-power wireless with IEEE 802.15.4, low-power line communication, 3G/4G gateways, ...) ruggedized routers and switches waterproof and capable of supporting extreme temperatures (-40C 70C) ; and gateways for industrial and mobile applications.

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Cisco StrategySolve our customers most important business challenges by delivering intelligent networks and technology architectures built on integrated products, services, and software platforms 2010 Cisco and/or its affiliates. All rights reserved.Cisco Confidential#Our strategy as a company is to solve our customers business challenges. We do this by innovating not just in best-of-breed technology but more importantly through innovating in architectures that integrate our products, services and software in ways that enable customers to transform their businesses.

6Cisco Architectural Innovations: Internet of Things as ExampleIndustriesSafety and SecurityConnectedHomeEnergyB2CSmart CitiesNetworks and ProtocolsData/Networking AnalyticsControlSystemsSensors and DevicesIndustry Innovation: Business Processes and Operations 2010 Cisco and/or its affiliates. All rights reserved.Cisco Confidential#As an example of Ciscos architecture innovations,

Cisco has identified 6 Internet of Things architectures that connect sensors, networks, analytics and control systems, integrated with business processes to help customers improve operations and save valuable time, money and even lives. . .

Connected Industries: Architectures for industrial verticals including manufacturing, supply chain, process, systems, oil and gas, mining, transportation and logistics.

Connected Energy: Integrated solutions to help utilities modernize, manage, and improve their everyday grid operations

B2C: Enabling loyalty programs, location-based services on mobile devices for companies to offer new services to their customers.

Smart Cities: Building on Ciscos S+CC vision, Smart Cities architectures deliver the intelligent network, services and applications to help cities cope with overcrowding, pollution, budget and resource constraints, inadequate infrastructures, and the need for continuing growth.

Connected Home: Cisco just launched with AT&T, AT&Ts Digital Life program, providing control panels and back-office provisioning and applications life-cycle management system, which allows customers to monitor, protect and manage their homes using a smartphone, tablet or PC

Safety and Security: Architectures will move beyond IP video surveillance to help cities manage their important safety and security issues, including traffic congestion and pollution. Cameras are some of most powerful sensors for alerting and sending notifications

7Ciscos Internet of Things StrategyLocationIdentityPolicyAggregation

DeterminismSafetyLatencyVirtual MachinesScaleDifficult networksSecurity/Net. MgmtService Provider M2M

Data AggregationDistributed ComputeVideo AnalyticsData in MotionNetworks and ProtocolsData/NetworkingAnalyticsControlSystemsSensors and DevicesCisco ArchitecturesCloudIntelligentNetworkData CenterIoT Application PlatformIoT Connectivity Platform 2010 Cisco and/or its affiliates. All rights reserved.Cisco Confidential#Ciscos Internet of Things strategy builds on Ciscos existing architectures for data center, intelligent networks and cloud to create a secure, highly scalable application platform so that customers dont have to sorry about connectivity, but can benefit from the applications most relevant to their industries.

Were creating a software platform that can be abstracted so its simple for the developer ecosystem to create applications around, and tie into other Cisco architectures.

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Customer Use Cases

Achieve Grid AwarenessLive Enriched, Healthier LivesStreamline Analytics & OperationsEnable Superior Customer Experiences

2010 Cisco and/or its affiliates. All rights reserved.Cisco Confidential#The Internet of Things is already very real, and making an impact for our customers today. Here are four short examples:

Hospital Corporations of America (HCA)HCA standardized on Cisco Video Surveillance system for their 200 hospitals - 2000 cameras. It is multi-million dollar deal for Cisco with initial ROI based on Physec and reduced legal costs for slip and fall claims. HCA is now expanding their application to include Patient Monitoring and Motion alerts on beds with violent or mentally ill patients integrated into Nurses Station which should save them millions of dollars.

BC HydroSmart Meters connect the home or business in a two-way communication with the electric grid and helps collect intelligent information that allows you to manage your energy consumption in a more reliable and efficient way. In the case of BC hydro, they were looking to establish a meter network, data collection & management system, as well as theft detection solutions that integrated with their existing applications. Leveraging the Cisco Field Area Network (FAN) solution, BC Hydro was able to able to deploy close to 2 million Ipv6 Smart Meters with an expected long-term business benefit of $500M for its customers.

ShellOn the other end of the spectrum, we help Shell Oil remotely monitor their oil rigs. A single rig generates 5 terabits of sensor data per minute. It is processed and stored locally but if, for example, any temperature reading goes above 300 degrees, info is escalated immediately over a satellite link to the operations center. Demonstrates need for end-to-end architecture and all systems working together in concert.

MGM Resorts InternationalMGM connected experience The Bellagio app gives guests info about all MGM properties, dining, shopping. You can see where you are and where you want to go. Can include conference or event-specific info.

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Innovation Examples1Hyper-Scale Networks2Seamless CloudConnected Cars3

2010 Cisco and/or its affiliates. All rights reserved.Cisco Confidential#Id like to invite some members of my team to join me on stage to tell you about the Internet of Everything innovations theyre working on.

(wait until Maciej and JP come on stage need to confirm TP logistics)

First, Cisco Fellow JP Vasseur. JP, can you describe how Cisco is innovating in the area of hyper-scale networks and why this is such a critical requirement for making the IoT a reality?

Connecting people, process, data and things through a combination of on-premise resources and various types of clouds is a key opportunity with the Internet of Everything, but one that can make networks and applications much more difficult to manage for our customers. Cisco Distinguished Consulting Engineer Monique Morrow, who is joining us today from Orlando where she is (is Monique doing something in Orlando we should reference?), is leading the Seamless Cloud initiative which is sponsored by our Technology Fund. Monique can you tell us about Seamless Cloud and how it will help make possible a World of Many Clouds?

I mentioned that Connected Industries is one of our six Internet of Things architectures. VP/GM for our Connected Industries Business Unit, Maciej Kranz, will share Ciscos pioneering work on applications connecting cars to the Internet of Everything . . .

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Hyper-Scale NetworksJP VasseurCisco FellowMarch 13, 2013 2010 Cisco and/or its affiliates. All rights reserved.Cisco Confidential# 2010 Cisco and/or its affiliates. All rights reserved.Cisco Confidential#Highly Unreliable Networks x10-12 of error rate on an optical fiber compared to 40% of packet loss!Limited resources: power, memory and CPU processing x125k less memory than basic Mac Book!Extremely High Scale Network (100s of millions of devices)e.g., 2M devices for smart metering in the city of VancouverWhy is the Internet of (every)Thing different from traditional IP networks ?

Bandwidth Constraints x100 less than Wi-Fi (and shared!)This is where innovation comes into play with a new vertical agnostic, distributed architecture for the network, and new protocols ! 2010 Cisco and/or its affiliates. All rights reserved.Cisco Confidential#12The Internet of (Everything)Distributed IntelligenceComputingChallenge or Opportunity of Innovation?

A new distributed architectureLow Network CapacityUnstable NetworkMassive ScaleStringent QoSManage- ability SecurityAn IPv6 Vertical Agnostic Architecture

IoT Cisco ArchitectureStorage Platform 2010 Cisco and/or its affiliates. All rights reserved.Cisco Confidential#13IoT in Action: Connected Grid Architecture (FAN)BC Hydro: 1st IPv6 multi-service scaled deployment in the world

1.8 Million Meters deployed by end-2012

1,713 CGRs deployed Cisco Connected Grid Netork Management System

Multiple WAN backhaul: 2G/3G Cellular, WiMax and Satellite Tenant Specification of SCL

CG-NMS

MDM

GPRS, 3G, LTEIEEE 802.15.4 sub-GHz RF MeshDMS

Residential Metering

RPDON Server

WIMAX / Prvt LTEsubstation

HESNew Ruggedized platformCisco IPv6 stackNew IoT NMS 2010 Cisco and/or its affiliates. All rights reserved.Cisco Confidential#14Technology Innovation1MB10KB100KB10MB199020002010On-Chip program memoryIOE program memory requirementsIOEATmega25618bit, 16MIPS256KB 8KB RAMATmega128L 8bit, 16MIPS128KB Flash 4KB RAMST32F232bit, 150 MIPS1MB Flash132KB RAMMSP430F161116bit48KB Flash10KB RAMAT90LS8535 8bit, 8MIPS8KB Flash 0.5KB RAMJN512132bit128KB Flash96KB RAM802.15.4Integrated hardware, lightweight protocols stacks (from 25MBytes to 40 Kbytes)

Understanding of the dynamics of difficult networks.

New protocols, algorithms and architectures!

2010 Cisco and/or its affiliates. All rights reserved.Cisco Confidential#15

Seamless CloudMonique MorrowDistinguished EngineerResearch & Advanced DevelopmentMarch 13, 2013 2010 Cisco and/or its affiliates. All rights reserved.Cisco Confidential# 2010 Cisco and/or its affiliates. All rights reserved.Cisco Confidential#Seamless Cloud

EnterprisePrivate Cloud E1EnterprisePrivate Cloud E1EnterprisePrivate Cloud E1EnterprisePrivate Cloud E1EnterprisePrivate Cloud E1EnterprisePrivate Cloud E1EnterprisePrivate Cloud E1EnterprisePrivate Cloud E1EnterprisePrivate Cloud E1Public Cloud 2Public Cloud 1Public Cloud 4Public Cloud 5Public Cloud 3Public Cloud 6Public Cloud 7Public Cloud 8Public Cloud 9

Ciscos Programmable Network Binds IT resources togetherenabling resources to be distributedand moved to where they are needed mostLeveraging the opportunities of the Internet of Everything requires IT resources to be globally distributed and unified 2010 Cisco and/or its affiliates. All rights reserved.Cisco Confidential#Problem statement As large Service Providers and Enterprises move more of their resources into the cloud, they will naturally start having the problem of merging and managing those resources under one umbrella. We can come up with a number of use cases, but ultimately this is a natural outgrowth of distributing resources across multiple clouds and across multiple geographies.

Service Providers and Enterprises are increasingly feeling the pressure to adopt Cloud technologies. Some of the Cloud efforts are based on concerted company mandates while others may be fragmented efforts by various teams leveraging Cloud technologies out of necessity.

Either way, companies will end up with infrastructure distributed in multiple private and public clouds and they are already running into the problem that naturally arises: how do we manage all these distributed clouds and how do we get control over our resources?

Solutions like Seamless Cloud will become more-and-more critical as Cloud adoption increases17Seamless Cloud InnovationWhat Makes This Possible?

Cisco APIs enable a graphed abstraction model of all network components+Cisco ONE a toolkit to provide programmatic access to network resources and to optimally configure IT resources +OpenStack - a global collaboration of developers and cloud computing technologists producing the ubiquitous open source cloud computing platform.

=

A multi-faced framework that enables customers to evolve existing infrastructure for the demands of the Internet of Everything

Customer BenefitsNetwork components and devices can be connected and appear as one entity.ANetwork resources can be programed to specific devices. BApplication performance can be optimized by manipulating the entire IT infrastructure.C 2010 Cisco and/or its affiliates. All rights reserved.Cisco Confidential#.18

Connected CarsMaciej KranzVP / GMCisco Connected Industries Business UnitMarch 13, 2013 2010 Cisco and/or its affiliates. All rights reserved.Cisco Confidential# 2010 Cisco and/or its affiliates. All rights reserved.Cisco Confidential#The ChallengeTodayCurrent statePotentialConnected Cars11-13% time wasted in urban congestion (90 billion hours)Traffic management and optimization of road networklower congestion7-12% of urban traffic is created by people looking for parkingVehicles intelligently adjust driving speeds, improving fuel efficiency

10-17% of urban fuel is wasted at stoplights when no cross trafficOptimized routes and traffic signaling 80% of accidents are caused by driver distraction (6.3M accidents)Vehicle-to-vehicle / infrastructure communication lowers accident ratesConnected Car Benefits

Consumer7.5% less time in traffic4% lower vehicle costs (fuel, repairs, insurance)

Social8% fewer accidents10% lower road costs3% C02 reduction 2010 Cisco and/or its affiliates. All rights reserved.Cisco Confidential#Every year, 8M traffic accidents cost 1.3 M lives and injure more than 7M people. Globally, we waste more than 90B hours in traffic jams, generating 220M metric tons of carbon equivalent and wasting at least $1T, or 2 %, of the global GDP.

That means the real total cost of personal transportation in the US alone is $3T per year (not including commercial or public vehicles). Nearly 40% of this cost is societalcrashes, parking, roads, traffic services, and pollution. These societal costs are a hidden Pigouvian tax of nearly $7,000 per vehicle per year.

In the US congestion alone costs $750 to $950 per vehicle per year, or $150B to $210B. While we are building more fuel-efficient vehicles like electric cars, even the most fuel-efficient car cannot avoid traffic:11-13 % of time is wasted in urban congestion.7-12 % of urban traffic is created by people looking for parking.10-17 % of urban fuel is wasted at traffic-light stops when no cross-traffic.20The Connected Carat a glance

Connectivity V2V / V2INetwork Services Traffic, Road conditions, Public SafetyApplicationsradio, satellite Maintenance and Service InfoSecurityCost effective Information and entertainmentReduced upkeep costs and better vehicle infoReduced vehicle operation costs and insurance ratesRobust customer assuranceEfficiencies and reduced costs 2010 Cisco and/or its affiliates. All rights reserved.Cisco Confidential#Read features and benefits from right to left

Nearly 300 million passenger vehicles, or 25% of the global vehicle population, will be connected to the Internet These cars will transport more than 400 million gigabytes of data through mobile networks each month. By 2022, the transport of this data volume represents a market potential of more than $50B.Connecting one-third of all vehicles has the potential to tap more than $100 billion of value in the United States and another $345 billion globallyacross the owner, OEMs, SPs and social benefits.

This is happening The U.S. Department of Transportation (USDOT) will host a free workshop shortly on the Connected Vehicle Reference Implementation Architecture program (CVRIA). The workshop is being organized by the Intelligent Transportation Systems Joint Programs Office (ITS JPO) in San Jose, California, April 30 - May 1, 2013.

The basic idea of a connected car is to install a combination communciaitons sytem instead of separate systems for:Audio, satellite radio, Telematics, Navigation, Insuramce dongle, Wi-Fi, intelligent traffic system/dedicated short-range communications, Tolling, ParkingOne system could save approximately 25% of the one-time costs.

Field tests in Europe and Japan have shown that 30 to 35 percent of crashes can be prevented by alerting drivers when they are in imminent danger of some of the main crash scenarios, such as rear-ending, running stop signs or red lights, and speeding in curves or bad conditions.me hardware and software costs. With additional 40 % per year in operating costs via a single service platform. This reduces total one-time costs from $400 to $300, and annual operating costs from $600 to $360.

New business/policy models for road usage: fair pricing, eco routing, urban parking, etc.

This is an area where government private partnership will be key. The opportunity for new value creation (over half $816 of the $1400 benefit per car) and new jobs (400K)21

The Connected Car

SmartphoneWheel-SensorCollision RadarLow Speed Network LIN, Lo-Speed CANElectronic Control Unit (ECU)Entertainment Network MOST, Internal Wi-FiX-by-Wire/Safety Network FlexrayWireless In-Car Network, Bluetooth, Low-Power Wi-Fi, RFIDHigh-Speed Network Hi-Speed CANCentral GatewayIOSWireless Car-to-X Network DSRC 802.11p, WiFi, WiMAX, Multiple 3G/LTE

HomeEnterpriseWebOEM RoadsideGridAudio/VideoDiagnosticsTelematicsDriver Assistance. 2010 Cisco and/or its affiliates. All rights reserved.Cisco Confidential#Connected Car Use CasesDRSC-based Vehicle communications with traffic systems for optimal traffic flowReduces congestion Reduces fuel consumptionAlerts drivers when conditions warrant urgent actionPrevents driver distraction and accidentsPotentially reduces insurance rates3G, LTE, and WiFi-based telemetry and vehicle info for fleet managementProvides just in time preventative maintenance or remote diagnosisProvides cost effective maintenance

Provides real time location information to riders and operatorsImproves rider satisfactionOptimizes maintenance and driver operationsFleet ManagementConnected Public TransitDriver MonitoringIntersection CommunicationsWith enterprise-grade security, real time ubiquitous network-agnostic connectivity and comprehensive architecture 2010 Cisco and/or its affiliates. All rights reserved.Cisco Confidential#Ciscos technologies will provide the necessary sniffing, seamless switching, and session persistency and network-agnostic radio technologies that automatically and securely switch among multiple networks and technologies to allow ubiquitous vehicle connectivity and superior customer experience while driving at speed and across multiple networks. Ciscos technologies like quality of service, prioritization, optimization, multi-band aggregation, and data management will significantly improve the customer experience and the ability to monetize high value added services, helping automotive manufacturers, insurance companies, service providers, and governments to reap the full benefits of smart connected vehicles and a smart connected transportation infrastructure.

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Data CenterIntelligent NetworkCloudOnly Cisco Innovations Bring it All Together

2010 Cisco and/or its affiliates. All rights reserved.Cisco Confidential#As youve just heard from our three other speakers, Cisco is leading innovations on connectivity with hyperscale data center, networks and cloud as well as on applications.

Only Cisco is able to offer the innovation leadership required on both the connectivity and the application platform to support the emergence of the Internet of Everything.

24SP NetworkAcross Ciscos Business: Innovating for New Customers, New Markets, New Applications

VideoMobility

EnterpriseNetwork

Data Center

Collaboration

Security

IT BuyersExisting Applications Information TechnologyLine of Business BuyersOperational TechnologyNew Applications (Social, Mobile, Video, Context-Aware, Verticals, etc.) 2010 Cisco and/or its affiliates. All rights reserved.Cisco Confidential#25As I wrap up, let me emphasize that the Internet of Everything opportunity touches all parts of Ciscos business.

As buying shifts from IT departments to Lines of Business, as operational technologies grow in importance relative to information technologies and as a new breed of applications emerges -- social, mobile, video, context-aware and industry-specific, For Cisco, the Internet of Everything means innovation opportunities for new customers and new markets and new applications.

And now Id like to invite Rob, Padma to join me (along with JP, Monique and Maciej) to take any questions you might have.

Editors Conference 2013 2010 Cisco and/or its affiliates. All rights reserved.Cisco Confidential# 2010 Cisco and/or its affiliates. All rights reserved.Cisco Confidential#26