Internet of Everything – Innovation in Action

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Pankaj Patel, Chief Development Officer discussed how the internet of everything creates unprecedented economic opportunity for businesses, individuals, and countries.

Pankaj Patel, Chief Development Officer discussed how the internet of everything creates unprecedented economic opportunity for businesses, individuals, and countries.

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  • 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.
  • We’re accelerating the pace of innovation at Cisco with a number of initiatives.We’re 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. We’ve 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 we’re now tracking in what we call our Technology Radar. You’ll 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.  
  • 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.
  • 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.
  • 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.
  • As an example of Cisco’s 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 operationsB2C: Enabling loyalty programs, location-based services on mobile devices for companies to offer new services to their customers.Smart Cities: Building on Cisco’s 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&T’s 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 PCSafety 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
  • Cisco’s Internet of Things strategy builds on Cisco’s existing architectures for data center, intelligent networks and cloud to create a secure, highly scalable application platform so that customers don’t have to sorry about connectivity, but can benefit from the applications most relevant to their industries. We’re creating a software platform that can be abstracted so it’s simple for the developer ecosystem to create applications around, and tie into other Cisco architectures.
  • 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 andMotion 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.
  • I’d like to invite some members of my team to join me on stage to tell you about the Internet of Everything innovations they’re 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 Cisco’s pioneering work on applications connecting cars to the Internet of Everything . . .
  • 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 increases
  • .
  • 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 societal—crashes, 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.
  • 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 globally—across 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)
  • Cisco’s 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. Cisco’s 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.
  • As you’ve 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.
  • As I wrap up, let me emphasize that the Internet of Everything opportunity touches all parts of Cisco’s 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 I’d like to invite Rob, Padma to join me (along with JP, Monique and Maciej) to take any questions you might have.

Internet of Everything – Innovation in Action Internet of Everything – Innovation in Action Presentation Transcript

  • Pankaj PatelEVP and Chief Development Officer© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 1
  • BUILD BUY PARTNER $5.5B FY12 R&D 160+ 70,000 Acquisitions Partners 25,000+ engineers 23,000 13,000+ patents CCIEs© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 2
  • Innovation Virtual TeamCross-Team Process Innovation Sprints Technology Scouts Internal Venture Technology Fund Framework© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 3
  • Internet of ThingsIT Budget Shifts to Lines of Business Smarter business processes People to M2M communications Cloud Things (sensors, actuators, Massive Scalability tags) everywhere New Breed of Apps Application anywhere, Consumerization of IT anytime BYOD Mobility / Wireless Ubiquitous Connectivity Growing Requirements © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 4
  • Internet of Things Gateways: Industrial, Mobility Ruggedized Routers/Switches Cloud New Types of Connectivity Data Center/Virtualization Cloud Connectors Unified Access, Seamless Consumerization of IT Roaming BYOD Smart Solutions Identity Services Engine IPv6 Standard, 100+ Patents© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 5
  • Solve 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 6
  • Smart B2C Cities Connected Energy Home Industry Safety Industries Innovation: and Business Security Processes and OperationsSensors and Data/Networking Control Networks and Devices Analytics Systems Protocols
  • IoT Application Platform Sensors and Data/Networking Control Networks and Devices Analytics Systems Protocols Cisco Data Intelligent Cloud Architectures Center Network© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 8
  • Live Enriched, Healthier Lives Achieve Grid Awareness Streamline Analytics & Operations Enable Superior Customer Experiences© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 9
  • Hyper-Scale Networks Seamless Cloud Connected Cars© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 10
  • JP VasseurCisco FellowMarch 13, 2013© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 11
  • Bandwidth Constraints x100 less than Wi-Fi (and shared!) 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 (100’s of millions of devices) e.g., 2M devices for smart metering in the city of Vancouver 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 12
  • BC Hydro: 1st IPv6 multi-service MDM New IoT NMS DMS scaled deployment in the world CG-NMS RPDON Server • 1.8 Million Meters deployed by end- HES 2012 WIMAX / Prvt LTE • 1,713 CGRs deployed GPRS, • Cisco Connected Grid Netork 3G, LTE substation Management System • Multiple WAN backhaul: 2G/3G Cellular, WiMax and Satellite IEEE 802.15.4 sub-GHz RF Mesh New Ruggedized platform Residential Metering Cisco IPv6 stack© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 14
  • On-Chip IOE • Integrated hardware, ST32F2 program memory 32bit, 150 lightweight protocols MIPS 10MB 1MB Flash stacks (from 132KB RAM 25MBytes to 40 1MB IOE program memory requirements ATmega2561 Kbytes) 8bit, 16MIPS 256KB 100KB • Understanding of the 8KB RAM ATmega128L 8bit, 16MIPS 10KB 128KB Flash 4KB RAM JN5121 dynamics of “difficult” 32bit 128KB Flash networks. 96KB RAM 802.15.4 1990 2000 2010 AT90LS8535 MSP430F1611 • New protocols, 8bit, 8MIPS 16bit 8KB Flash 48KB Flash algorithms and 0.5KB RAM 10KB RAM architectures!© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 15
  • Monique MorrowDistinguished EngineerResearch & Advanced DevelopmentMarch 13, 2013© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 16
  • Leveraging the opportunities of the Internet of Everything requires IT resources to be globally distributed and unified Cisco’s Programmable Network Binds IT resources together… Enterprise Private Cloud E1 Enterprise Enterprise Private Cloud E1 Enterprise Private Cloud E1 Private Cloud E1 Public Cloud 3 Enterprise Enterprise Private Cloud E1 Public Cloud 7 Public Cloud 1 Private Cloud E1 Public Cloud 2 Public Cloud 6 Public Cloud 5 Enterprise Enterprise Private Cloud E1 Private Cloud E1 Enterprise Private Cloud E1 Public Cloud 8 Public Cloud 9 …enabling resources to be …and moved to where they Public Cloud 4 distributed are needed most © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 17
  • Customer Benefits Cisco APIs enable a graphed abstraction model of all network components Network components and devices can + A be connected and appear as one entity. Cisco ONE – a toolkit to provide programmatic access to network resources and to optimally Network resources can be programed configure IT resources B + to specific devices. OpenStack - a global collaboration of developers and cloud computing technologists producing the C Application performance can be optimized by manipulating the entire ubiquitous open source cloud computing platform. IT infrastructure. = A multi-faced framework that enables customers to evolve existing infrastructure for the demands of the Internet of Everything© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 18
  • Maciej KranzVP / GMCisco Connected Industries Business UnitMarch 13, 2013© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 19
  • Today Potential Current state Connected Cars Connected Car Benefits Traffic management and 11-13% time wasted in urban optimization of road network Consumer congestion (90 billion hours) lower congestion 7.5% less time in traffic 4% lower vehicle costs (fuel, Vehicles intelligently adjust driving repairs, insurance) 7-12% of urban traffic is created by speeds, improving fuel efficiency people looking for parking Social 8% fewer accidents 10-17% of urban fuel is wasted at Optimized routes and traffic 10% lower road costs stoplights when no cross traffic signaling 3% C02 reduction 80% of accidents are caused by Vehicle-to-vehicle / infrastructure driver distraction communication lowers (6.3M accidents) accident rates© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 20
  • Home Enterprise Web OEM Wireless Car-to-X Network Roadside Grid DSRC 802.11p, WiFi, Low Speed Network LIN, Lo-Speed CAN WiMAX, Multiple 3G/LTE Entertainment Network X-by-Wire/ MOST, Internal Wi-Fi Safety Network Flexray Wireless In-Car Network, Smartphone Bluetooth, Low-Power Wi-Fi, RFID IOS Collision Radar High-Speed Network Hi-Speed CAN Electronic Control Unit (ECU) Wheel-Sensor Audio/Video Telematics Diagnostics GatewayDriver Assistance Central ….© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 22
  • Intersection Connected Public Fleet Management Driver MonitoringCommunications Transit
  • Data Center Cloud Intelligent Network© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 24
  • Enterprise SP Network Security Mobility Network Video Data Center Collaboration IT Buyers Line of Business Buyers Information Technology Operational Technology New Applications (Social, Mobile, Existing Applications Video, Context-Aware, Verticals, etc.)© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 25
  • © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 26