The document discusses the accelerated progress of the Internet of Things (IoT) and the significant economic opportunity it presents. Some key points discussed include: 1) IoT has moved beyond hype to reality, with strong growth in connected devices and billions of dollars in mergers and acquisitions in the past year. 2) IoT is estimated to have a total global economic value of $8 trillion based on analysis of 61 real-world use cases across various industries. 3) Barriers to IoT progress include issues around technology talent, complexity, business readiness, security and data policies. Industry consortiums are being formed to help address skills gaps. 4) IoT presents opportunities for new business

1. The Internet of Things:
Capturing the Accelerated Opportunity
Wim Elfrink, EVP, Industry Solutions and Chief Globalisation Officer
October 14-16, 2014 • Chicago, Illinois

2. The Internet of Things Accelerated Progress
One year ago
Why IoT
Today
How
We capture
the IoT opportunity
©2014 Cisco and/or its affiliates. All rights reserved. 2

3. ©2014 Cisco and/or its affiliates. All rights reserved. 3
From Hype to Reality…. “Up and to the Right”
Internet
of Things
Big Data It’s Official: The Internet
of Things Takes Over
Big Data As The Most
Hyped Technology.
8/18/2014
Source: Forbes and Gartner Hype Cycle 2014

4. ©2014 Cisco and/or its affiliates. All rights reserved. 4
From Hype to Reality…. “Up and to the Right”
It’s Official: The Internet
of Things Takes Over
Big Data As The Most
Hyped Technology.
8/18/2014
Internet
of Things
Source: Forbes and Gartner Hype Cycle 2014

5. Amazon
pays $1B
for Twitch
Samsung
snaps up
Smart Things
for $200M
But is it Really Just Hype? Accelerated IOT Progress In the Industry
Key Milestones Since Barcelona IoT WF 2013
©2014 Cisco and/or its affiliates. All rights reserved. 5
MSFT
entered IoT
Market
Barcelona
Smart City
Google/Nest
Labs
acquisition
Facebook
grabs
WhatApp
for $19B
AT&T and
IBM
announce
IOT Vision
AT&T, CISCO,
Zebra
Acquires
Motorola
GE, IBM AND INTEL
form Industrial
Internet Consortium
Schneider and
IoBridge Announce
Partnership
Apple
announces
the First home
automation
Initiative
Intel
announces
IoT Group
PTC drops
$300M on
ThingWorx (Dec,
2013) & Axeda
(Aug, 2014)
Vodafone buys
Cobra
Automotive
Technologies
for $185M
UK Creates
£45m IoT
Fund
Siemens
IoT Fund
Oct. Jan. Feb. Mar. Apr. May Jun. Jul. Aug.

6. Amazon
pays $1B
for Twitch
Amazon
pays $1B
for Twitch
Samsung
snaps up
Smart Things
for $200M
But is it Really Just Hype? Accelerated IOT Progress In the Industry
Key Milestones Since Barcelona IoT WF 2013
©2014 Cisco and/or its affiliates. All rights reserved. 6
MSFT
entered IoT
Market
Barcelona
Smart City
Google/Nest
Labs
acquisition
Facebook
grabs
WhatApp
for $19B
AT&T and
IBM
announce
IOT Vision
AT&T, CISCO,
Zebra
Acquires
Motorola
GE, IBM AND INTEL
form Industrial
Internet Consortium
Schneider and
IoBridge Announce
Partnership
Apple
announces
the First home
automation
Initiative
Intel
announces
IoT Group
PTC drops
$300M on
ThingWorx (Dec,
2013) & Axeda
(Aug, 2014)
Vodafone buys
Cobra
Automotive
Technologies
for $185M
UK Creates
£45m IoT
Fund
Siemens
IoT Fund
Oct. Jan. Feb. Mar. Apr. May Jun. Jul. Aug.
Google
acquires Nest
Labs $3.2B
Samsung
snaps up
Smart Things
for $200M
UK
Creates £45m
IoT Fund

7. ©2014 Cisco and/or its affiliates. All rights reserved. 7
Accelerated Progress for IoT: Technology Trends
Connected Devices Since Barcelona, October 2013-2014
Connections Counter
Data Processes Things
Connected to the Internet
October 14, 2013
Source: Cisco Connections Counter
http://newsroom.cisco.com/feature-content?type=webcontent&articleId=1208342 ; http://blogs.cisco.com/news/cisco-connections-counter/

8. ©2014 Cisco and/or its affiliates. All rights reserved. 8
Accelerated Progress for IoT: Technology Trends
Connected Devices Since Barcelona, October 2013-2014
Connections Counter
October 14, 2014
Data Processes Things
Connected to the Internet
Source: Cisco Connections Counter
http://newsroom.cisco.com/feature-content?type=webcontent&articleId=1208342 ; http://blogs.cisco.com/news/cisco-connections-counter/

9. ©2014 Cisco and/or its affiliates. All rights reserved. 9
IoT Is Here. Now. And It’s Big
IoT Dashboard: IoT is Accelerating
IoT… Huge Opportunity for Ecosystem
3 Key Takeaways
1
2
3

10. Factory
Optimization
SMART
©2014 Cisco and/or its affiliates. All rights reserved. 10
Integrated
Operations
Center
Grid
SMART
Ambulances
Medical
Devices
Stadium
Hospital
Optimization
Comms
Network
Optimization
Home
Energy
Management
Digital Signage
Traffic Flow
Optimization
Logistics
Optimization
Traffic
Automated Cameras
Car System
A City, Country, Company with a Digital Overlay
Connected Over Industry Standard Platforms
Intelligent
Connected
Cloud and
Services
+
Platform
Smart
FACTORY
SMART
HIGHWAY
CITY
SMART
HOSPITAL
Intelligent
Connected

11. European
Commission
iCapital Award
Smart Lighting Smart Buses Smart Water Smart Bus Stop Smart Parking Smart Waste
©2014 Cisco and/or its affiliates. All rights reserved. 11
Barcelona: Smart City
$3.6B Value Creation
Smart Citizens
Revenue Citizen Experiences Jobs Productivity Cost Avoidance

12. European
Commission
iCapital Award
Smart Lighting Smart Buses Smart Water Smart Bus Stop Smart Parking Smart Waste
©2014 Cisco and/or its affiliates. All rights reserved. 12
Barcelona: Smart City
$3.6B Value Creation
“ 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
Smart Citizens
City of Barcelona, Spain
ƒ 1,500 New Companies
ƒ 56,000 New Jobs
ƒ Mobile Collaboration: $1.6B
ƒ Telework: $199M
ƒ Smart Parking: $67M
ƒ Smart Water: $58M
ƒ Smart Lighting: $47M
Revenue Citizen Experiences Jobs Productivity Cost Avoidance

13. ©2014 Cisco and/or its affiliates. All rights reserved. 13
Barcelona: Smart City
$3.6B Value Creation
“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

14. ©2014 Cisco and/or its affiliates. All rights reserved. 14
Welcome
Deputy Mayor
Steve Koch

15. The Internet of Things Accelerated Opportunity
Growing Markets
Total Value
Sectors
©2014 Cisco and/or its affiliates. All rights reserved. 15

16. ©2014 Cisco and/or its affiliates. All rights reserved. 16
Inflection
point
6.8 7.2 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
40
30
20
10
0
Billions of Devices Timeline
50
“Billion
Smart Objects”
25
12.5
The New Essential
Application Centric Infrastructure

17. Wisdom
(Scenario Planning)
Knowledge
Information
Data
©2014 Cisco and/or its affiliates. All rights reserved. 17
Big Data – The New Norm
More
Big Data Doubles Important
Every Two Years
Less
Important
ƒ 90% of world’s data created
in last 2 years
ƒ More new data generated in
2012 than prior 5,000 years
ƒ By 2020, 40% of data will
come from sensors
ƒ Walmart collects 2.5 petabytes
of data hourly from customer
transactions
ƒ Singapore generates several
Terabytes of data every day
New Need for Chief Digitization or Data Officer

18. ©2014 Cisco and/or its affiliates. All rights reserved. 18
Awareness of the IoT Opportunity Is Pervasive…
72%
Americas
79%
EMEAR
91%
APAC
88% IT Execs / 75% LoB
Are “very aware” or “somewhat
aware” of IoT
92%
84%
82%
82%
82%
79%
70%
Utilities
Oil and Gas
Manufacturing
Retail
Metals & Mining
Transportation
Public Sector
Source: 2014 Cisco IoT Research, Cisco Consulting Services and GMCC Thought Leadership Team

19. ©2014 Cisco and/or its affiliates. All rights reserved. 19
…and Organizations Are Going To Invest
81%
Americas
75%
EMEAR
92%
APAC
82% IT Execs / 74% LoB
Investments to increase “somewhat” or
“significantly” over 3 years
91%
89%
86%
86%
79%
77%
76%
Oil and Gas
Utilities
Manufacturing
Transportation
Retail
Metals & Mining
Public Sector
Source: 2014 Cisco IoT Research, Cisco Consulting Services and GMCC Thought Leadership Team

20. Public Sector
©2014 Cisco and/or its affiliates. All rights reserved. 20
Accelerated Opportunity
Total Global Economic Value of IoT
Economic Value
Based on 61
Real-World
Use Cases
Value Sources
Private Sector
$6.4T
$1.6T
$8.0T
Trillion
Asset
Utilization
$2.1T
Supply Chain/
Logistics
$1.9T
Innovation/
Revenue
$2.1T
Customer/ Citizen
Experience
$0.7T
Employee
Productivity
$1.2T

21. 0 5,000 10,000 15,000 20,000
©2014 Cisco and/or its affiliates. All rights reserved. 21
IoT Economic Value by Industry
Administration (6%)
35%
30%
25%
20%
15%
10%
5%
0%
(Value at Stake/Industry Size)
Degree of Impact
Source: Cisco Consulting Services, 2013
Retail trade (10%)
Information services (4%)
Manufacturing (Energy,
Oil & Gas) (34%)
Public Sector
Healthcare (5%) (20%)
Finance & insurance (4%)
Professional services
Education
Industry Size ($B)
Spheres sized by
amount of Economic Value

22. ©2014 Cisco and/or its affiliates. All rights reserved. 22
Interactive IoT Global Deployment Map
ƒ 260 Global Use Cases
ƒ Across Industries
ƒ Interactive at Forum Kiosks

23. ©2014 Cisco and/or its affiliates. All rights reserved. 23
Interactive IoT Global Deployment Map
Chicago

24. ©2014 Cisco and/or its affiliates. All rights reserved. 24
Interactive IoT Global Deployment Map
Connected
Street Lights

25. ©2014 Cisco and/or its affiliates. All rights reserved. 25
Interactive IoT Global Deployment Map
Real Time
Bus Schedules

26. ©2014 Cisco and/or its affiliates. All rights reserved. 26
Interactive IoT Global Deployment Map
Smart City

27. ©2014 Cisco and/or its affiliates. All rights reserved. 27
Internet of Things Reference Model
Levels
Collaboration & Processes
(Involving People & Business Processes)
Application
(Reporting, Analytics, Control)
Data Abstraction
(Aggregation & Access)
Data Accumulation
(Storage)
Edge Computing
(Data Element Analysis & Transformation)
Connectivity
(Communication & Processing Units)
Physical Devices & Controllers
(The “Things” in IoE)
Center
Edge
Sensors, Devices, Machines,
Intelligent Edge Nodes of all types
7
6
5
4
3
2
1

28. ©2014 Cisco and/or its affiliates. All rights reserved. 28
Internet of Things Reference Model
Levels
Collaboration & Processes
(Involving People & Business Processes)
Application
(Reporting, Analytics, Control)
Data Abstraction
(Aggregation & Access)
Data Accumulation
(Storage)
Key Points:
ƒ A guiding model for IoT implementations
ƒ Creates an IoT technology taxonomy
ƒ Helps accelerate IoT deployments
ƒ Supported by 20 companies – members of the
architecture workgroup
ƒ Endorsed by IIC (Industrial Internet Consortium)
Edge Computing
(Data Element Analysis & Transformation)
Connectivity
(Communication & Processing Units)
Physical Devices & Controllers
(The “Things” in IoE)
Center
Edge
Sensors, Devices, Machines,
Intelligent Edge Nodes of all types
7
6
5
4
3
2
1

29. The Internet of Things Capturing Opportunity
The Foundational Impact
Building
Blocks
On Society
©2014 Cisco and/or its affiliates. All rights reserved. 29

30. Technology Talent
Complexity
©2014 Cisco and/or its affiliates. All rights reserved. 30
Impediments to IoT Progress
Business
Readiness
Security Data Policies

31. Information and
Communications
Technology
Security Data Science
©2014 Cisco and/or its affiliates. All rights reserved. 31
Where are the Skills Gaps? What is the Impact for IoT?
Global shortage of workers
over next 5 years
Increase in demand from
2011 to 2013
Jobs needed in
next 10 years

32. Information and
Communications
Technology
Security Data Science
©2014 Cisco and/or its affiliates. All rights reserved. 32
Where are the Skills Gaps? What is the Impact for IoT?
Global shortage of workers
over next 5 years
Source: Cisco's 2014 Annual Security Report
Career Builder, IBSG, Bureau of Labor and Statistics
Increase in demand from
2011 to 2013
Jobs needed in
next 10 years

33. ©2014 Cisco and/or its affiliates. All rights reserved. 33
Industry Talent Consortium to Address Skill Gaps
Careerbuilder.com

34. ©2014 Cisco and/or its affiliates. All rights reserved. 34
Uber: Most Transformational and Disruptive IoT Transition
ƒ New Business and
Consumption Models
ƒ New Type of Job Model:
Drivers Work When They Want
ƒ Modernizing Economy

35. ©2014 Cisco and/or its affiliates. All rights reserved. 35
Key Takeaways
The World is Becoming Increasingly
Diverse and Digitalized
A New Data Driven World…
Chief Data Officer
ICT… The Essential Infrastructure…
IT and OT Alignment
Transformational
Opportunities…Generating $19T
Economic Value
Future of Work in a
Sharing Economy
New Ecosystems
Will be Essential
Integrated
Operations
Centers…
Data Info Knowledge Wisdom
What Are Our Next Steps?

36. Thank you
Wim Elfrink, EVP, Industry Solutions
and Chief Globalisation Officer
Email: welfrink@cisco.com
Twitter: @WimElfrink