Innovating with a Trillion Smart Objects

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1 Bucharest April 2013 Innovating with a Trillion Smart Objects Ian Kennedy Senior Director, Cisco Europe, Middle East, Africa, Russia Cisco and/or its affiliates. All rights reserved. Cisco Connect 1

2 Defining Innovation Change that creates a new dimension of performance Peter F. Drucker Beyond innovation lies disruptive innovation, which actually changes social practices the way we live, work & learn. John Seely Brown 2012 Cisco and/or its affiliates. All rights reserved. Cisco Connect 2

3 World GDP Transforming the Global Social & Economic Landscape Long term economic growth is driven by pervasive General Purpose Technologies (GPT s) and the Internet meets the criteria Lipsey, Carlaw, Becker The Internet of Nano-things (Biotech; Nanotech) The Internet Changing the way we work, live, play & learn Electricity Computers Wheel Writing Sailing Ship Printing Press Railways Time 2012 Cisco and/or its affiliates. All rights reserved. Cisco Connect 3

4 Internet of Things Industrialization of the Internet Billions (devices) Billion Smart Objects Inflection point Source: Cisco IBSG white paper The Internet of Things, April World Population 2012 Cisco and/or its affiliates. All rights reserved. Cisco Connect 4

5 What is a Smart Object? 2012 Cisco and/or its affiliates. All rights reserved. Cisco Connect 5

6 Trying to determine the market size for the Internet of Things is like trying to calculate the market for plastics, circa At that time, it was difficult to imagine that plastics could be in everything. Prof. Michael Nelson, Georgetown University Cisco and/or its affiliates. All rights reserved. 6

7 Smarter Physical Networks The Rise of Autonomy Remote Monitoring for Safety & Security Big Data/Analytics for Insights & Predictions Plant / Mining Automation, Autonomy & Cooperation Integrated Transport & Energy Systems 2012 Cisco and/or its affiliates. All rights reserved. Cisco Connect 7

8 Collaborative Things 1. Self-detection exceeded volume limit 2. Confirmation of safe storage environment 3. Prohibited storage combinations 2012 Cisco and/or its affiliates. All rights reserved. Cisco Connect 8

9 2012 Cisco and/or its affiliates. All rights reserved. Cisco Connect 9

10 2012 Cisco and/or its affiliates. All rights reserved. Cisco Connect 10

11 The Impact of Urbanization - From GDP of City600 will rise by $30T or 65% of Global Growth Emerging 440Cities will contribute $23T 650M New Consumers in Emerging 440Cities Additional floor space equivalent to 85% of todays building stock 80Billion m 3 increase in municipal water demand.energy, telecomms, transport, security. Source: McKinsey Global Institute, Urban World: Cities & the Rise of the Consuming Class, June Cisco and/or its affiliates. All rights reserved. Cisco Connect 11

12 Smart Cities & Homes - The need for a The City Protocol * Energy Savings Water Consumption Crime Rates Traffic Carbon Emissions 30% 50% 20% 30% 25% Education: $3/Student/Month Healthcare: $3/Doctor Visit * A Certification System for Smart Cities Announced Aug Cisco and/or its affiliates. All rights reserved. Cisco Connect 12

13 What information consumes is rather obvious: it consumes the attention of its recipients hence a wealth of information creates a poverty of attention and a need to allocate that attention efficiently among the overabundance of information sources Herbert Simon Artificial Intelligence Pioneer Nobel Prize in Economics Cisco and/or its affiliates. All rights reserved. 13

14 Transformation, at its core, is about intelligent information networks, with sensors as their eyes & ears, and computers as their brains. Networks can identify critical information and push out that information to those who need to know it, when they need to know it. Dr Ronald D. Sugar Chairman & CEO Northrop Grumman Corporation Cisco and/or its affiliates. All rights reserved. 14

15 The Opportunity: Turning Data into Wisdom Wisdom Knowledge Information Data 2012 Cisco and/or its affiliates. All rights reserved. Cisco Connect 15

16 IoT Access Network Lightweight IP + OS Zero Touch Prov. IoT Innovation Ruggedized Platform Hosted App. Distributed Intel. IoT NMS Apps High-Level IOT Architecture Energy Smart Cites Connected Vehicles Data Center Hosting IoT analytics Core IP/MPLS, Security, QoS, Multicast Network Management Applications IP/MPLS Core Thousands Multi-Service Edge 3G/4G/LTE/WiFi Field Area Network Tens of Thousands Distributed Intelligence: FOG Embedded Systems & Sensors Low power & bandwidth, smart things Smart Objects Network Millions

17 FOG CLOUD IoT Data Latency Hierarchy 2012 Cisco and/or its affiliates. All rights reserved. Cisco Connect 17

18 Today, But the we future anticipate will be continuous far more surprising technological than most people progress realise, and because the social few repercussions observers have that truly follow internalised the implications of the fact that the rate of change itself is accelerating." Raymond Kurzweil From The Singularity is Near, 2005 Author, Scientist & Futurist Cisco and/or its affiliates. All rights reserved. 18

19 The most profound technologies are those that disappear. they weave themselves into the fabric of everyday life until they are indistinguishable from it. Marc Weiser, 1991 Writing on Ubiquitous Computing Cisco and/or its affiliates. All rights reserved. 19

20 Thank you Cisco and/or its affiliates. All rights reserved. Cisco Connect 20

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