The Internet of Everything Changes Everything

Wim Elfrink EVP, Chief Globalisation Officer

October 2, 2014

Meeting of the Minds

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7.2 6.8 7.6

World Population

Increasingly Everything Will Be Connected to Everything

Rapid Adoption rate of digital

infrastructure: 5X faster than electricity and

telephony

50

2010 2015 2020 0

40

30

20

10

Bill

ions

of D

evic

es

Timeline

50 “Billion Smart Objects”

25

12.5

Inflection point

The New Essential

Application Centric Infrastructure

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Data

Information

Knowledge

Wisdom (Scenario Planning)

IoE Acceleration – BIG DATA

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§  90% of world’s data created in last 2 years

§  More new data generated in 2012 than prior 5,000 years

§  By 2020, 40% of data will come from sensors

§  Singapore generates several Terabytes of data every day

Big Data Doubles Every Two Years

Less Important

More Important

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Source: Apple, Google, Windows Mobile, Cisco Analysis, NY Times

The Explosion of Applications

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2010

iPhone Apps Alone

Today

Apple and Google Apps Worldwide

2020

Apps Worldwide

2007

Total Mobile Apps

100 Movies and 250 Books vs. 15K Apps

Released Worldwide Every Week

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The Evolution of the Internet

Internet of Everything

Digitize the World Connecting:

•  People •  Process •  Data •  Things

Intelligent Connections

Connectivity Digitize Access to Information •  Email •  Web Browser •  Search

Immersive Experiences

Digitize Interactions (Business & Social) •  Social •  Mobility •  Cloud •  Video

Networked Economy

Digitize Business Process •  E-commerce •  Digital Supply

Chain •  Collaboration

Business and

Societal Impact

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Seizing the Opportunity – Economic Value of the IoE

Based on 61 Real-World Use Cases

Value Sources

$14.4T Private Sector

$4.6T Public Sector

$19.0* Trillion

Economic Value

Asset Utilization

$2.5T

Supply Chain/ Logistics

$2.7T

Innovation/ Revenue

$3.0T

Customer Experience

$3.7T

Employee Productivity

$2.5 T

Only 1% of the World is Connected Today 13B devices

CONNECTED to the NETWORK

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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

$39B Water

Management

$41B Smart

Parking

$62B Video

Surveillance

$18B Traffic

$22B Smart

Lighting

$1.9T Open Data/ Killer Apps

$3 Trillion a New Urban Services Industry

…significant public sector revenue and cost savings opportunities

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Cloud & Services

Stadium

Municipal Command & Control Center

Smart Grid Hospital

Optimization

Comms Network

Optimization

Home Energy

Management

Traffic Flow

Optimization

Factory Optimization

Logistics Optimization

Traffic Cameras

Automated Car System Intelligent Digital

Signage

Connected Ambulances

Intelligent Medical Devices

SMART CITY

SMART HOSPITAL SMART

HIGHWAY

SMART FACTORY

A City, Country, Company with a Digital Overlay Connected Over Industry Standard Platforms

Source: Intel

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European Commission iCapital Award

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

§  44,000 New Jobs

§  Mobile Collaboration: $1.6B

§  Telework: $199M

§  Smart Parking: $67M

§  Smart Water: $58M

§  Smart Lighting: $47M

Energy Mgmt / Urbanization

Smart Lighting Smart Water Smart Buses Smart Bus Stop Smart Parking Smart Waste

Revenue Jobs Productivity Cost Avoidance Citizen Experiences

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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

§  44,000 New Jobs

§  Mobile Collaboration: $1.6B

§  Telework: $199M

§  Smart Parking: $67M

§  Smart Water: $58M

§  Smart Lighting: $47M

Energy Mgmt / Urbanization

Smart Lighting Smart Water Smart Buses Smart Bus Stop Smart Parking Smart Waste

Revenue Jobs Productivity Cost Avoidance Citizen Experiences

“WORLD’S 50 GREATEST LEADERS” #46 Barcelona Mayor Xavier Trias

“ Barcelona has a mayor who is busy transforming the cultural gem of Spain’s Catalonia region into the ‘smartest city on the planet.’ Partnerships with companies like Cisco and Microsoft are fueling development, a new tech-campus hub is in the works, and he’s connecting citizens to government services through mobile technology.”

–Fortune Magazine, March 2014

European Commission iCapital Award

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! Architectural approach… 12K ships, 83 railroads, 1000’s cars & trucks

! Double throughput in 10 years ! 75% Opex Savings ! Servers reduced 80% ! Tie port to city & hospitals ! IP Ruggedized Network, WLAN, Cloud,

Phones, Call Manager, Webex, TP

BUSINESS OUTCOMES

Hamburg

Hamburg Port Authority (HPA)

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GOVERNMENT VALUE:

§  Increased reach § Opex savings § Better real estate use § Greener work styles

CITIZEN VALUE: •  Convenient access to

live, informed agent. •  All government

services in one location

•  Longer service hours

Operational References:

•  Nice

•  Barcelona

•  Dubai

•  Brisbane

Government Services come to citizens where they are…

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Objective

Strategy

Solution

Impact

IoE Strategist: Amsterdam

Amsterdam’s citywide IoE strategy and strong IT infrastructure are enabling 47 concurrent

IoE initiatives Strategy accelerates IoE value creation,

enables experimentation

§  Improve the lives – and livelihoods – of citizens

§  Launched “Smart City” IoE strategy, with 47 IoE projects to date § Work with local telecommunications, electricity companies to

create IT infrastructure that could support citywide IoE initiatives

§  IoE projects include smart energy grid systems, streetlighting, parking applications, building management, and public Wi-Fi

§  9 to 14 percent savings on energy bills due to apps that provide greater insight into individual energy usage

§  Sensors on electric grid have improved network’s reliability

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Jobs/FDI Energy Savings

Water Consumption Crime Rates Traffic

50% 20% 30% 30% Healthcare: $3/Doctor Visit

Education: $3/Student/Month

Benefits of Sustainable Communities

A Safer, Desirable Environment where People are Happier and more Productive with Benefit to the Economy, Society and Environment

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Convergence – How Can We Enable the Creation of New Industry

New Ecosystem

Public Private Partnerships &

People

Smart Regulation

Global Open Standards

Visionary Leadership

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IoT World Forum Smart City Walking Tour Stop 1 @ Wacker near Hyatt Regency •  Cisco NERV truck •  Police Command & Control Vehicle •  Connected Traffic Lights •  MANET

Stop 2 @ Michigan Ave. Bridge •  Rockwell Automation Sensors (pending) •  Chicago Architecture Stop

Stop 3 @ Wacker & Michigan Ave •  Connected Lighting and Traffic Sensors

Solutions •  AGT Environmental Sensors (pending)

1

2

3

4

5

Start

6

Stop 4 @ Michigan Ave & Lake St. •  Connected Bus Stop - CTA •  Divvy Bikes •  Solar Powered Trash Compactor •  Retail Experience Applications

Stop 5 @ Randolph St •  Millennium Park and Grant Park

In Motion 6 @ Randolph St •  Parking Enforcement Solution

Thank you.

Email: Welfrink@cisco.com Twitter: @wimelfrink