Cisco Tech Advantage Webinar. June 4th, 2014 Video: http://youtu.be/RkmMi9qea5Y IoT is everywhere, from smart meters on houses to parking sensors in the ground – all devices are connected to the Internet. Internet engineers are helping traditional industries solve new industrial world challenges by connecting billions of new devices. An exciting part of the IoT journey is the integration between both worlds: Information Technology (IT) and Operation Technology (OT). For that a systems approach is required to scale the existing Internet infrastructure to accommodate IoT use cases, while making IT technology easy to adopt for OT operators. In this session you will learn: IoT infrastructure challenges and the need for open standards and partner ecosystem Key elements to build large-scale IoT systems as IPv6, access control, plug and play, distributed intelligence and contextual awareness Introduction to fog computing and advantages of extending cloud computing and services Looking ahead to the future

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Cisco TechAdvantage Webinars
Steps to Scale the Internet of Things (IoT)
Rafael Maranon
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PanelistsSpeaker
Rafael Maranon
Senior Product Manager
rmaranon@cisco.com
Clara Alvarado
Marketing Manager
clalvara@cisco.com
Mitesh Dalal
Product Line Manager
mdalal@cisco.com
Felix Davis
Product Line Manager
felixdav@cisco.com
Marc-Andre Oriani
Product Manager
morianil@cisco.com

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Rafael Maranon
IoT Product Manager, Networking Software
rmaranon@cisco.com
June 4, 2014

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• IoT
• Opportunities
• Challenges
• Solutions
• Conclusions
5

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Source: Telefonica I&D 2011

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Source: Forbes

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Source: IDC Digital Universe in 2020 Report

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14. © 2014 Cisco and/or its affiliates. All rights reserved. 14Photo: Reed Hilderbrand

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of the World is Still
Not Connected

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Industry Segment Type of Savings
Estimated 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
Source: “Industrial Internet: Pushing the Boundaries of Minds and Machines,” GE, November 26, 2012

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Value at Stake (2013 – 2022)
Trillion
Private Sector
Includes both industry-specific and horizontal use
cases
• Customer Experience
• Innovation
• Employee Productivity
• Supply Chain
• Asset Utilization
• Increased Revenue
• Reduced Cost
• Employee Productivity
• Connected Militarized Defense
• Citizen Experience
Public Sector
Includes cities, agencies, and verticals such as
healthcare, education, defense
Estimate is based on bottom-up analysis of 61 use cases, including 21 for private sector and 40 in public sector

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• SG&A and CoGS reduction from improved business
process execution
• Improved capital efficiency
• Improved labor efficiency
• Fewer or more productive man-hours
• Improved customer lifetime value
• Additional market share (more customers)
• Improved R&D, speed, reduced TTM
• New business models and new sources of revenue
• Improved process efficiency
• Reduced waste in supply chain
Source: Cisco IBSG, 2013
IoE Private
Sector Value
at Stake
$14.4T
(2013-2022
10-year NPV)*
* Net present value
Asset utilization:
$2.5T
Improved customer
experience: $3.7T
Supply-chain / logistics
efficiency: $2.7T
Innovation: $3.0T
Employee productivity:
$2.5T

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Source: Cisco IBSG, 2013
Sample'Size'='807'
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
100.0%
$0 $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14,000
Degree of impact
(Value at Stake /
industry size)
Industry size (value added $B)
Manufacturing
(27%)
Information
services (9%)
Retail trade
(11%)
Administration
Finance and insurance (9%)
Healthcare
Education
Professional services
Wholesale
Company
management
Spheres sized by
amount of Value at Stake

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• 1000 or less end devices
• 10K end devices
• 100K end devices
• >1M end devices

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Machine-to-MachineMachine-to-PeoplePeople-to-People
New Connections What They Mean for Retailers
• Shelf sensors
• Parking-space sensors
• IR motion sensors
• Weight mats
• Environmental (light, temperature) sensors
• Door sensors
• Mobile payment
• Digital signage
• Connected shopping carts
• Video cameras and analytics
• Wi-Fi badges
• Gesture recognition
• Point-of-sale
• Kiosks
• Shopper mobile devices
• Store associate mobile devices
• Immersive video
• Social media
• Contact center
• E-commerce site
Flexible
Payment Options
Automated
Ordering Process
Inventory
Visibility
Energy
Optimization
Personal-SoLoMo
Content
Understanding of
Shopper Behavior
Endless Aisle
Omnichannel
Collaborative Product
Development
On-Demand
Expert Advice
On-Demand
Training

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Machine-to-MachineMachine-to-PeoplePeople-to-People
New Connections What They Mean for Manufacturers
• Converged IP plant network
• Wireless sensors (vibration, temperature)
• Wireless I/O machines
• Wireless process operation controls
• Energy usage analytics
• Supply chain analytics
• Video cameras and analytics
• Network security analytics
• Hardened mobile video devices
• Active collaboration rooms
• Connected factory video
• Contact center
• B2B e-commerce site Remote Expertise
Flexible
Production
Real-Time Supply
Chain
Operations
Analytics
Collaborative Product
Development
IT and Physical
Security
Predictive
Maintenance
Mobile Collaboration
on Factory Floor
Remote Asset
Monitoring

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Machine-to-MachineMachine-to-PeoplePeople-to-People
New Connections What They Mean for Governments
• Smart buildings
• Smart lighting
• Smart payments
• Intelligent public transit
• Smart grid
• Video surveillance
• Smart parking
• Disaster response
• In-patient monitoring
• Telework
• BYOD
• Connected learning
• Travel avoidance
Increased Revenue and
Compliance
Employee
Productivity
Enhanced
Security
Improved Asset
Use
Energy
Optimization
Citizen and Employee
Experience
New Revenue
Streams
Lower Costs

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• greenfield (mainly just for IoT use cases)
• brownfield (most of the cases IoT as an extension of the existing IT infrastructure)

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Creating the agility to gain insights and use
intelligence to improve predictions
Dealing with infrastructure complexity
Proactively dealing with security threats as
connectedness increases

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Mobile Cloud New Class
of Apps
Big Data and
Analytics
IoT
Internet of Everything
AgileHyper-Aware Predictive
Infrastructure
Simplification
Holistic
Security
Build Software-Based
Agility Functions
Easy To
Adopt

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Achievable by…1 Simplify the Infrastructure
Next-Generation IT
Programmability
Opening
Up Your Infrastructure
Orchestration
Automating and
Orchestrating Across All
Infrastructure
Virtualization
Crossing Enterprise,
Cloud, and Service
Providers’ Boundaries

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Achievable by…2 Build Software-Based Agility Functions
Next-Generation IT
Application
Centricity
Enabling Application-
Centric Infrastructure
Analytics
Optimizing Infrastructure
and Extracting Unique
Insights

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Achievable by…3 Address Security Holistically
Next-Generation IT
Automation
Dynamically Defend and
Remedy Threats
Visibility
Increase Visibility Across
Infrastructure and Users

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ADAPTIVE
SECURITY
PREDICTIVE
PERFORMANCE
ANALYSIS
ANOMALY
DETECTION
LEARNING INFRASTRUCTURESIoT ENVIRONMENT
PARAMETERS
DATA
OPTIMAL
PERFORMANCE
OBSERVEDHIDDEN
SENSORS, CAMERAS, CARS, WEARABLE
SENSORS, TRAFFIC LIGHTS,
COMPUTERS, SMART METERS
MODEL
LEARN
ADJUST

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IP Connectivity
…..
PLC 220 MHz Wi-Hart 800 Mhz
Train Control Street Parking
Environmental
Monitoring
Electric
Metering
Domain Specific
Applications
Domain Specific
And/or Proprietary
Devices and Protocols

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IPv6/IPv4
UDP/TCP
IEEE 802.15.4e MAC enhancements
IPv6 RPL
Web Services, EXI, SOAP,
RestFul,HTTPS/CoAP
• Open Standards – at all levels to ensure interoperability and reduce technology risk
• Future proofing – common application layer services over various wired/wireless communication technologies
802.1x / EAP-TLS & IEEE 802.11i based Access Control
Physical
Layer
IEEE 802.15.4
2.4GHz, 915, 868MHz
DSSS, FSK, OFDM
IEEE 1901.2
NB-PLC
OFDM
IEEE 802.11
Wi-Fi
2.4, 5 GHz, Sub-GHz
IEEE 802.3
Ethernet
UTP, FO
2G, 3G, LTE
Cellular
IEEE 802.16
WiMAX
1.x, 3.xGHz
Data
Link
Layer
IEEE 802.15.4
including FHSS
IEEE 1901.2
802.15.4 frame
format
IEEE 802.11
Wi-Fi
IEEE 802.3
Ethernet
2G, 3G, LTE
Cellular
IEEE 802.16
WiMAX
6LoWPAN (RFC 6282) IPv6 over Ethernet (RFC 2464)
IPv6 over PPP
(RFC 5072)
IP or Ethernet
Convergence SubL.
Network
Layer
Transport
Layer
Application
Layer
Addressing, Routing, Multicast, QoS,
Security
Security (DTLS/TLS)
DNS, NTP, IPfix/Netflow, SSH
RADIUS, AAA, LDAP, SNMP,…
(RFC 6272 IP in Smart Grid)
Metering
IEC 61968 CIM, ANSI C12.22,
DLMS/COSEM,…
SCADA
IEC 61850, 60870
DNP3/IP, Modbus/TCP,…
LLC
M
A
C
Mgmt

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Traditional Computing Model
(Terminal/Mainframe, Client-Server, Web)
Assumes In!nite,
Bandwidth, 0 Delay
Data Center/
Cloud
Endpoint
IoT Computing Model
Data Center/
Cloud
Device
Fog
Assumes Limited Bandwidth,
Variable Delay, and Intermittent
Connectivity
Latency
Resiliency
Security
Data Grows Faster
Than Bandwidth
Legacy Systems
Integration
Fog is the distributed platform
where the Internet meets the
physical world

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City Infrastructure
Synchronize Signals for
Emergency Vehicles
Improve Congestion
Management
… and Can Save Lives

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Railway Systems
Immediate Response
to Equipment Failure
Real-time Health Status of
Trains
New Passenger Amenities and
ServicesREPLACE
BEARINGS
CAR 07

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Railway Systems
Immediate Response
to Equipment Failure
Real-time Health Status of
Trains
New Passenger Amenities and
Services

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6 5 4 3 2 1

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DOUBLE PASSENGER CAPACITY 1-2% FUEL SAVINGS

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IMPROVE PASSANGER EXPERIENCE EASY TO DEVELOP NEW
APPLICATION IN HOUSE

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What Is The Platform I Should Build?
What Types of IoT Partners Can Help?
What Infrastructure Do I Need to Build?
What Are My Killer Apps?
But don’t forget…

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Imagine what is possible!

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Thank you.
@rafaelmaranon

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• Please complete the post-event survey
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