As we talk about the future of information technology, we need to acknowledge that IT implementation is happening outside the IT departmentGartner reports that IT budgets will be flat or down over the next three years, but overall technology spending will increase.It’s a trend that we are seeing with a number of our customers as many organizations see lines of business spending opex on X as a service and cloud-based applications that can be turned up and down as their business needsIn addition, there are growing requirements and expectations of IT all organizations as we see trends coming togetherFamiliar technology trends like ubiquitous connectivity, mobility and BYOD are converging in the technology transition that we see as the consumerization of IT – people are coming into the workplace with the same expectations that they have in their personal livesExacerbating the challenges that we face in the Consumerization of IT, companies and organizations are being faced with the demand for any application any time, anywhere in addition to the birth of a new breed of applications from the cloud and the need for massive scalability – with the consumerization of IT and adoption of cloud, the requirements of technology grow even more complexAnd multiplying that complexity is the trend of connected sensors and new communication models leading to machine decision making for smarter business processes – all this resulting from the internet of thingsIf we look at these three categories of technology transitions all converging in the way we live and work – we can see the emergence of the Internet of EVERYTHING – defined as the connecting of people, process, data and things
The commonality between all these transitions is the role of the network And in the era of the Internet of Everything, the network will play an even bigger role in enabling and deriving value from the connections between people, process, data and things in the technology trendsBut making the adjustment means the evolution to an application-centric Intelligent Network; and this evolution happens from the networks of today At Cisco, our engineers are creating the tools to evolve today’s network to The Network of the Future, which is…Secure, agile and aware, to address the consumerization of IT and rising user expectations. With the ability to enforce consistent policy from network to user, employees can access the information and applications they need – any time, anywhereMeeting the demands of the new Cloud models that require a dynamic, automated (e.g. Learning Networks, distributed computing) infrastructure that can support a world of many clouds It means simplifying network operation and administration so that network elements are self-aware to self-configure, self-optimize, self-heal, self-protect; a concept that we call “Autonomic Networking”Massive scalability delivered by the Cisco unified data center approach to compute, storage, networkingThe network plays a critical role in providing the consistency needed to manage the challenges from the Internet of things resulting in massive amounts of data analysis and use through programmability, APIs and analytics across all layersWith an application-centric intelligent network, we can address the two distinct categories of connections:1) the people to people and people to machine, bandwidth intensive connections2) the low bandwidth connections of constant data streams that result from machine to machine and sensor connectionsUltimately, the Internet of Everything will require the network that can handle not only the connections, but also provide the analytics to turn that data into valuable information and determine the actions that need to be taken
To get to the point, we need to help our customers evolve their greatest technology asset, the networkThis evolution requires a shift in how we think about the intelligent networkIf we start from the bottom and move up, we are talking about a fundamental change in how we program the network – from infrastructure level, command line interface to programmability throughout the network through APIsAnd provide analytics and distributed intelligenceThere is the opportunity to take the inherent intelligence and apply it to applications for even better business processes and efficiencyWe now need to help our customers bring together multiple infrastructures that work together with consistency and easeMost importantly, it’s about easing complexity and management through smarter, automated network services
And the application-centric, intelligent network will be a key component of the model for next generation ITComprised of the combination of hardware, software, ASICs and services innovation, let’s take a closer look at how the Model for Next Gen IT will enable the Internet of EverythingOur origin lies in the historical networking space and we’ve successfully expanded our business with solutions in Access, Security, Collaboration and the Unified Data Center along with growing our Services businessWith the internet of everything, it will be critical for us to bring together the architectures that address the technology trends of today to address the major market transition of the future: the Internet of EverythingThrough our existing solutions, we are helping our customers solve the technology complexities that they face and we bring together disparate systems, networks and functions With the internet of everything, our customers will need to bring together the data from all these different places to where decisions can be made and information used for actionThe model for next gen IT provides our customers with the ability through APIs to quickly configure their networks to meet their changing needsAnd as we help our customers evolve their networks, we’ll continue to support them through traditional services and new services that can makes the most of the information traversing their networksThis is not an architectural view or stack representation, but it is the framework that shows how we can help our customers leverage their IT investment today to address the challenge of the Internet of Everything ABOUT THE CISCO UNIFIED PLATFORM: What is the Unified Platform?In the Mobile Cloud Era – Web economy is moving to an Networked App economyThe network will be central and we are working on driving this transitionWhat we mean by Unified Platform is - Exposing the intelligent network to make applications perform better and unify applications whether they are traditional enterprise apps, new breeds of apps in open source, or industry specific solutionsProviding unified API management across the portfolio to drive speed and flexibility to customersNot a traditional SW platform in the mainframe or web eraWill monetize by bundling SW capabilities based on customer solutionThis a phased approach How is the Cisco Unified Platform like .Net or AWS?We’re not going to monetize the unified platform as a platform in the traditional sense. We’re going to monetize it through software components on Cisco solutions How does this compare with EMC’s Pivotal Initiative?There is recognition that this is the direction the industry is moving and many players will have different approachesSince our inception, we have unified technology: Unified protocols, unified communications, and now unifying applicationsStarted this 5years ago – building solutions for smart grid, smart and connected communities, connected industriesWe believe only the network can pull together all the disparate pieces, from the edge to data center, to drive the unification required. How will you attract developers to the Cisco Platform?Developers are looking for access to the intelligent network to drive application performance. Cisco Unified Platform will give them a unique way to run their applications better on supporting infrastructure What do you have today and when would we expect to see something?Cisco ONE PK is providing customers with the visibility to program to the network. Major MSDC customers are using Cisco ONE PK in their environments to drive application performance.In addition, we’ve done a series of acquisitions – 9 of 11 of the last acquisitions – are software companies that accelerate our ability to deliver this capabilityAcquisitions like Truviso and Thinksmart are starting to help bridge the divide between the application and infrastructure with policy VCider, Virtuata and Insieme complement our Unified Data Center strategy and NDS introduces a new model for video and helps introduce additional revenue opportunity to our SP customers How will you monetize the Unified Platform?Will monetize by selling SW and services bundles and SW bundled with Cisco infrastructureWill this require significant M&A and reorg?Has been part of our M&A strategy for several years and how we have continued to evolve our engineering organization. Will continue to evolve and move talent to optimize our opportunity.
Cisco Pilots Developed Over the Last 5+ YearsWe Started On Incubation Concepts 5+ Years Ago5+ Years Ago S+CC, 4+ SmartGrid, 2+ Connected Industries…The point here is that there is sufficient opportunity for the entire industry across a number of segments and value-chains (these being select only)Value at Stake / Value in Use: defined as the value creation potential for customers (by adopting the IoT solution/use case) this is global for private and public sector for IoTSource: Cisco, 2013 (in conjunction with McKinsey)We have 6 business architectures… would like to speak about 3 today:S+CC:$1.1T Value at Stake Education, Energy, Traffic, Entertainment, Safety, Healthcare, Real Estate, Gov’t9 Iconic Projects / 100s ProjectsToronto, Songdo, Rio, Skolkovo, London, Sydney, China, Barcelona, etc.Connected Energy: $670B Value at StakeBC Hydro… Vancouver 1,700 poletop routers 1.6M smart meters Router talks to any intelligent end point. Electric meters, gas / waterConnected Industry: $1.4T Value at StakeIncludes: Connected VehiclesDefenseIndustrial/M2MAutomation
Bringing it All TogetherTurning Information Into Action By evolving to this network, we can enable not just the connections between people, process, data and things, but derive the value and apply that value for benefitThe application-centric intelligent network is critical in bringing together the data center and a world of many clouds to address the big technology transitions that are happening as we move to the Internet of EverythingWith the increasing number of connections and actionable information inherent in all these connections, how we mine and use all this data offers a massive opportunity for business differentiation and valueData/info used to be very static…it resided on your PC in the office or on a server. Today, that data is no longer static -- it moves as the user moves, it may be stored in the cloud or elsewhere. The business requires data to move where it can be used to make decisions. This is IT's role. Because the network essentially moves data from one place to another, this business requirement is really the network's role to solve….and what better company to solve this than Cisco, the networking company. This is why Cisco's goal to be the #1 IT company in the world makes sense — and is possible.IoE just means there's more data and things out there that the network must "move" so business can make decisions.