TOMORROW Starts Here Cisco and/or its affiliates. All rights reserved. 1
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1 TOMORROW Starts Here 2013 Cisco and/or its affiliates. All rights reserved. 1
2 $14.4T IoT Value at Stake over the next decade 2012 Cisco and/or its affiliates. All rights reserved. 2
3 Fixed Computing Mobility/BYOD Internet of Things Internet of Everything 50B Things 200M 10B
4 People Process Intelligent Network Things Data People-to-People + People-to-Machine + Machine-to-Machine 2013 Cisco and/or its affiliates. All rights reserved. 4
5 Operational Efficiencies Smarter Business Process Economic Growth IoT Drivers Safety and Security Workforce Optimization Regulatory Mandates
6 PROCESS MANUFACTURING: Proactive maintenance and safety/security in remote operations, logistics TRANSPORTATION + LOGISTICS: Maintenance and fleet tracking and new customer experiences DISCRETE MANUFACTURING: Comprehensive security, better asset utilization, faster reaction times UTILITIES: Grid modernization and workforce optimization IoT Business Opportunities GOVERNMENT/DEFENSE: Response to security threats, natural disasters, secure operations and safety HEALTHCARE: Patient monitoring, tracking equipment RETAIL: Secure operations, new customer experiences AUTOMOTIVE: Driver safety and decision making
7 2013 Current state Automated assembly machines are expensive and complicated to create and install Inflexible and costly product-line changes 2022 Potential with IoT Reduced costs as automated tools become less expensive to manufacture / implement Increased revenues from greater product variations More intelligent design of machines; greater control of instrumentation and production conditions Ad hoc product quality testing Improved quality with sensors to monitor product specs Less-skilled employees for production Inefficient use of key inputs of production Source: Cisco IBSG, 2013 More highly skilled production and managerial employees are needed Reduced waste from more efficient usage of key materials, including energy 2013 Cisco and/or its affiliates. All rights reserved. 7
8 2013 Current state Vulnerability to faults One-way flow of electricity Production calibrated for peak demand requires reserves, causes inefficiencies Variability in renewable energy sources prevents adoption 2022 Potential with IoE Automated detection and self-healing improve reliability of the electric network Ability to shape electric flows enables more flexibility, distributed generation Demand-side management improves generator utilization and grid efficiency Enables more sustainable energy sources such as wind and solar Connecting sensing, measurement, and controls in real time improves reliability, cost, and alignment between supply and demand Source: Cisco IBSG, Cisco and/or its affiliates. All rights reserved. 8
9 From Basic Connectivity... From Proprietary Standards... From Disparate IT and OT Networks to a Critical Part of the Enterprise Infrastructure to Open Standards to Converged, Secure and Collaborative Operations 2013 Cisco and/or its affiliates. All rights reserved. 9
10 IT 2013 Cisco and/or its affiliates. All rights reserved. 10
11 B2C Smart Cities Energy Connected Home Industries Industry Innovation: Business Processes and Operations Safety and Security Sensors and Devices Networks Computing & Storage Data Analytics Control Systems
12 Industry Innovation: Business Processes and Operations Sensors and Devices Networks Computing & Storage Data Analytics Control Systems
13
14 Bandwidth Constraints x100 less than Wi-Fi (shared too!) Highly Unreliable Networks x10-12 error rate on optical fiber compared to 40% packet loss Limited resources: power, memory and CPU processing x125k less memory than basic Mac Book Extremely High Scale Network (100 s of millions of devices) e.g., 2M smart meters in Vancouver Innovation is required to overcome these challenges A new industry-agnostic, distributed network architecture and new protocols 2013 Cisco and/or its affiliates. All rights reserved. 14
15 Sensors and Devices Networks, Computing, Storage Data Analytics Control Systems Safety Latency Virtual Machine Control Cisco Architectures Data Center Intelligent Network Cloud
16 First Step: Connectivity Second Step (Today): Optimized for IoT Third Step: Services for IoT Fourth Step: Enabling the Internet of Everything Ruggedized Infrastructure M2M Sensor Enablement Mobility Security New Protocols Distributed Computing and Storage Distributed Data Management Cloud Services Distributed Services Adaptive networks Application Enablement Distributed Applications
17 Process Manufacturing Discrete Manufacturing Transportation Defense Utilities Plantwide Ethernet, Intelligent Transportation, Smart Cities, S&C Refinery, Smart Connected Vehicle, Smart Grid Industrial Applications: BYOD, Physical Security, Remote Expert Connected Grid 1550 Series Ruggedized Wireless AP IE 2000 IE 3000 M2M ISR Gateway Router Embedded Services Routers & Switches CGR 1000 & 2000 Series CGS 2500 Series Industrial Cyber Security Lightweight IPv6 Stack (RPL, COAP, 6lowpan, optimized low-power link layers, lightweight OS) Data Center/Virtualization SP Managed Services and SP Service Aggregation Layer (ASR 5K)
18 Verticals Cisco s Approach to IoT Smart Solution Process Mfg. Oil & Gas Industrial Smart Solution for Mfg Discrete Mfg. Industrial Smart Solution for Procss Transportation/ Defense Machine to Machine Transportation Smart Solution Connected Vehicle Connected Machine Healthcare Connected Vehicle Retail Connected Grid Customer-In Approach Understanding of key business care about and pain points Relevance to LOB leaders/ CXOs Industry Partners M2M Mobile SPs Advanced Services Products/Technologies Best-in-class ruggedized products Smart solutions for verticals IoT Enablers Time Sync Pervasive Cyber Security Scalable Routing Deterministic Ethernet Guaranteed Delivery Big Data Management SP services IoT architectures Strategic Partnerships Ruggedized Products Ruggedized Wireless AP Industrial Routers & Switches Industrial Security Hardened Mobile M2M Gateway IP Cameras Video Surveillance Industry partners Vertical software / service partners Service providers 2013 Cisco and/or its affiliates. All rights reserved. 18
19 2013 Cisco and/or its affiliates. All rights reserved. 19
20 Energy and Utilities Grid Modernization Connecting Grids to Digital Communications Smart Meters 2013 Cisco and/or its affiliates. All rights reserved. 20
21 Energy and Utilities Grid Modernization [Cisco s] work is assisting us to transform the electricity network into a smarter grid. -Adrian Clark, Chief Technology Officer, Ausgrid Challenge Current electric grid design is inefficient Piecemeal upgrades inefficient and don t allow for new applications Modernize existing infrastructure with SCADA and telephony services Build 10 new substations / year in environmentally demanding areas Business Value Reduced capital and operating costs Improved reliability Improved efficiency via mobility and field workforce collaboration apps Reduced costs through new services like IP telephony at substation Improved physical/network security 2013 Cisco and/or its affiliates. All rights reserved. 21
22 End Points Infrastructure Operation Services Data Center / Energy Mgmt Services Private Cloud Enterprise Video, Voice, Data Enterprise Cloud HES NMS Primary Substation GPRS, 3G, LTE, WiMax Secondary Substation Ethernet Cisco Connected Grid Router Residential Metering Transformer Monitoring Distribution Automation EV Charging Infrastructure sub-ghz RF Mesh or IEEE P G3 PLC Mesh Large C&I Meters Street Lighting Distributed Generation Distribution Protection and Control Network Protection and Control Network Work Force Automation 2013 Cisco and/or its affiliates. All rights reserved. 22
23 Manufacturing Business Priorities Next-Generation Manufacturing Cyber and Physical Security Collaborative Manufacturing 2013 Cisco and/or its affiliates. All rights reserved. 23
24 Manufacturing Next-Generation Manufacturing Power Optimization Real-time Performance and Reliability 2013 Cisco and/or its affiliates. All rights reserved. 24
25 Manufacturing Real-time Performance and Reliability CASE STUDY: Plant-wide Industrial Ethernet Challenge Deploy infrastructure for new mining projects quickly at reduced costs Reduce maintenance times of equipment Easily access operational data for management and security/compliance Keep both equipment and network running Business Value Bridge on-site process control systems and business-critical IT decision-making systems Reduced downtime across facilities Real-time information on production systems Standardization = scalability, future-proof 2013 Cisco and/or its affiliates. All rights reserved. 25
26 Internet Enterprise/IT Integration Enterprise Network Levels 4 5 Collaboration Wireless Web Apps DNS FTP Application Optimization Patch Management Terminal Services Application Mirror AV Server Gbps Link for Failover Detection Firewall (Active) Firewall (Standby) Cisco ASA 5500 Demilitarized Zone (DMZ) Firewalls Application and Data Share Access Control Threat Protection DCS MES Cisco Catalyst 6500/4500 Cisco Cat StackWise Switch Stack Cisco Catalyst Switch Network Services Production Zone Level 3 Distribution and Core Site Operations and Control Multiservice Networks Network and Security Management Routing EtherNet/IP, Profinet Drive Controller HMI Distributed I/O Cell/Area #1 (Redundant Star Topology) Cisco Layer 2 Access Switch Controller Cell/Area #2 (Ring Topology) HMI Drive Controller HMI Drive Distributed I/O Cell/Area #3 (Linear Topology) Cell/Area Zone Levels 0 2 Layer 2 Access Field Bus Real-Time Control (Profibus DP, PA, Foundation Fieldbus) Fast Convergence Traffic Segmentation and Management Ease of Use 2013 Cisco and/or its affiliates. All rights reserved. 26
27 Real Solutions Today Established Track Record Driving IT OT convergence Addressing Technology Challenges Making IoT easier for you 2013 Cisco and/or its affiliates. All rights reserved. 27
28 Where are You? Business Process Innovation Technology Architecture IT s Role in IoT Org Structures Process and Cultural Changes Security and Privacy 2013 Cisco and/or its affiliates. All rights reserved. 28
29 Thank you Cisco and/or its affiliates. All rights reserved. 29
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