© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 1© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 1
Tomorrow starts Here…
Data, Technology, and InnovationPlatform for Change
Rick Huijbregts@CiscoSCRE
© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 2
Western Union, 1875
“The telephone has too many shortcomings to be ever considered a means of communication”
@CiscoSCRE #CiscoSmartTO
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Henry Ford
“If I would have asked people what they wanted, they would have said: Faster Horses”
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Thomas Watson, IBM, 1943
“There is a world market for only five computers”
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© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 5
Ken Olson, Digital, 1977
“There is no reason for any individual to have a computer in his home”
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1993
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Climate Group, Smart 2020 report
“ICT can reduce global emissions up to 15% in 2020, five times its own footprint”
Compare to these:
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Gartner, United Nations
“Scaling to a Gigabit access could increase GDP by about 3% each year”
Compare to these:
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Cisco Confidential 9© 2010 Cisco and/or its affiliates. All rights reserved.From Flickr [some rights reserved by Mammal]
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Cisco Confidential 10© 2010 Cisco and/or its affiliates. All rights reserved.From Flickr [some rights reserved by Muertiz]
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Cisco Confidential 11© 2010 Cisco and/or its affiliates. All rights reserved.From Flickr [some rights reserved by Yutaka Tsutano ]
@CiscoSCRE #CiscoSmartTO
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Pace of Innovation Accelerating
Source: IBM’s Global Innovation Outlook, Joseph Jacobsen, Organizational and Individual Innovation Diffusion, 2004
0
Cellular PC Internet Television Radio VCR Electricity Telephone Automobile
200 30 40 50 60 70 80 90 100 110 120 130 1400
20
40
60
80
100
10
Perc
en
tag
e P
en
etr
ati
on
of
Pote
nti
al
Worl
d M
ark
ets
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© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 13
Meet your new Boss, in the new World
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Social networking + Mobile
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Three Major Trends Are Reshaping the Global Landscape
Economics & Productivity
Environmental/Energy
By 2030 world energy demand will
increase by 40%
Social Demographics
Aging
Shrinking
Hypergrowth
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Safety & Security
Access to Healthcare
& Education
Talent Mismatch / Supply & Demand
Energy Mgmt /
Urbanization
What Are the Challenges We Need to Address?
The Main Challenges
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© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 17
The Internet of Everything – “Industrialization of the Internet”
50
2010 2015 2020
Billions (devices)
0
40
30
20
10
50Billion“Smart Objects”
25
12.5
7.26.8 7.6
Inflectionpoint
World PopulationSource: Cisco IBSG white paper “The Internet of Things”, April 2011. @CiscoSCRE #CiscoSmartTO
© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 18
Smart + Connected Communities Vision
Running a Community, City, Country, and the World
on Networked Information
Running a Community, City, Country, and the World
on Networked Information
Sustainability Services Delivered by Technology #CiscoSmartTO
© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 19
Connecting the unconnected…
Solve Environmental Challenges Thrive in Smart Communities
Focus on Improved Safety Achieve Energy Efficiency
… to change the way the world works, lives, plays, and learns
Live Enriched, Healthier Lives
Redefine Work Models
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© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 20
Technology Inflection Points
TIME
Routed
Bridged
Switched
Shared
Packet
Circuit
Mobile
Fixed
Video
Voice & DataVirtual
Dedicated
AnyDevice
PC
Centralized
Smart Grid Silo’d
S + CCConnected Industries
Independent
INTELLIGENT NETWORKSThe
Internet
Internet of Everything
Market Transitions
Cloud / Virtualization
Mobility
Big Data Open Data Apps
Collaboration / Video
© 2012 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 21
Media—Energy—Security—Experience
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© 2011 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 22From Flickr [some rights reserved by Akakumo]
Any device, AnywhereContent in the Cloud
Ubiquitous Services Delivery
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Distributed Health Care to Remote Areas
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Remote Expert for Government Services
The Citizen at the Center of it all
© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 27
Exponential Growth In IP Traffic
Source: Cisco IBSG, Cisco VNI Global Forecast, 2011–2016
By the end of 2011, 20 typical households generated more internet traffic than the entire internet in 2008
By 2015, 1 Zettabyte of data will flow over the internet
1 Zettabyte: Stack of books from Earth to Pluto 20 Times (72 billion miles)
Every second, one Million minutes of video content will cross the global network in 2015
© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 28
Video Will Dominate the Information Flow
201320102007
36 Exabytes
180 Exabytes
486 Exabytes
Video Traffic
of all Consumer Internet Traffic willbe Video in 2013
Global Consumer Internet Traffic (Annual)
Source: Cisco Visual Networking Index
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© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 29
McKinsey, Global Institute
“Data volume is growing 44% per year, and will increase 44x between 2010 and 2020”
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Power OutagePower Outage
88% of organizations prepared
Failure of Server, Host, Application, Software
Failure of Server, Host, Application, Software
Workforce DisruptionWorkforce Disruption
Increased Workforce Resilience—Key to Business Continuity
Source: Gartner
Only 13% of organizations today are prepared for a major disruption in workforce operations.
70% of organizations prepared
13% of organizations prepared
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And You?the Places in which you Work?Are You Ready?
© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 32
The Workplace is Broken
0%10%20%30%40%50%60%70%80%90%
100%
8:00 10:00 12:00 2:00 4:00 6:00
Wasted Assets
Util
izat
ion
Time of Day
•Utilization commonly peaks at 40%
•Given the workplace is the largest long-term asset on most balance sheets, this probably represents the largest area of waste left in corporations
•Offices/cubes are only utilized 30-35% while conference rooms are overbooked.
Utilization is Poor
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Line of BusinessLine of Business
SEGMENTED GO TO MARKET
ENT
COMSP
MarketingChannels IBSG
Technology
Services / Support
Manufacturing
Sales
Finance / Legal / HR
BusinessDevelopment / Alliances
Command / ControlCommand / Control
Command and Control Command and Control
Collaboration and TeamworkCollaboration and Teamwork
COLLABORATION and TEAMWORKIBSGIBSG SalesSales
MarketingMarketingChannels Channels
ManufacturingManufacturing
Finance / Legal / HRFinance / Legal / HR
Business Development / AlliancesBusiness Development / Alliances
TechnologyTechnology
Services/ SupportServices/ Support
Business model evolution: everything is changing
© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 34Cisco Aironet 3600 Series Access Point – Press Presentation – January 2012
15 billion 3/4of employees use
MULTIPLE DEVICES
for work
Growing Demand for Mobile Access
100%STRUGGLE to
keep up with mobile needs
of IT staff
New networked mobile devices by
2015
56%of USInformationWorkers
spend time working
OUTSIDE THE OFFICE
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© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential 35
Converging All Forms of Human Expression
Helping Business Become “Green”, ProductiveImmersive in real estate utilization and planning
© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential 36
32% mtgs avoided travel
US$ 1.4Bcost savings on travel
US$ 504M in productivity cost savings
727k metric tons of GHG emissions saved
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```
Interactive Media
Digital Signage
Wireless
Tenant Services
High Speed Internet
Unified Communications
IP Telephony
Building Services
HVAC Sensors
Fire Control
Elevators
Lighting
Energy Management
Video Security
Maintenance Management
24/7 Monitoring
`Monitoring
`Control
Submit
Dashboards
The Building Information Network
Cisco Confidential 38© 2010 Cisco and/or its affiliates. All rights reserved.
Utilities
$2.84
$0.71
25%
Impact on Building Operations
Admin Security Maintenance Cleaning
$1.02
$0.18
18%$0.32
25%
$1.32 $3.12
$0.45
14%
$2.27
$0.13
6%
Savin
gs
OPEX reduction up to 11% annuallyCAPEX savings on mechanical, electrical, and ICT up to 15%
© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 39
“Don’t bother me with new ideas, I’ve got a battle to fight!”
@CiscoSCRE #CiscoSmartTO
© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 40
Sustainable ROIRe-defining Value Engineering
REVENUE
OPERATIONS
OPEX
CAPITALCAPEX
ENVIRONMENT
BRAND
HEALTHLIFE SAFETY
TENANTSocial Sustainability
@CiscoSCRE #CiscoSmartTO
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Global OpenStandards
Visionary Leadership
SmartRegulation
New Ecosyste
m
Public Private Partnerships
What Will it Take?
Creation of a New Industry
@CiscoSCRE #CiscoSmartTO
© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 42
Mahatma Ghandi
“The future depends on what you do today”
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Thank you.
Rick Huijbregts@CiscoSCRE