J.W. CHUNG, Ph.D, Director of Cisco Consulting Services Internet of Everything, and Newer Business Landscape

Transcription

1 J.W. CHUNG, Ph.D, Director of Cisco Consulting Services Internet of Everything, and Newer Business Landscape

2 Computer scientists, Len Bosack and Sandy Lerner found Cisco Systems Bosack and Lerner run network cables between two different buildings on the Stanford University campus A technology has to be invented to deal with disparate local area protocols; the multi-protocol router is born 2012 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 2

3 Cisco Vision and Strategy Vision Change the way the world works, lives, plays, and learns Strategy Solve our customers most important business challenges by delivering intelligent networks and technology architectures built on integrated products, services, and software platforms

4 We Deliver Lasting Value Our employees and partners are our strength. They help make Cisco a strong competitor in a rapidly changing world. World Class Expertise 20,000+ Engineers Services and Ecosystem 11,000+ Services Professionals 70,000+ Partners Diverse and Global 165+ Countries / 470+ Offices Nearly 70,000 / Employee Customer Centric Leadership across Service Provider, Enterprise, and Public Sector Culture Societal Impact 10,000 Networking Academies Nearly 170,000 Volunteer Hours

5 The Evolution of the Internet Business and Societal Impact Connectivity Digitize Access to Information Web Browser Search Networked Economy Digitize Business Process E-commerce Digital Supply Chain Collaboration Immersive Experiences Digitize Interactions (Business & Social) Social Mobility Cloud Video Internet of Everything Digitize the World Connecting: People Process Data Things Intelligent Connections

6 Business Opportunity in an Evolving World The Internet of Everything Create and Expand New Markets and Services Create Better Experiences to Build Better Relationships Empower People/ Increase Efficiency Actionable Insights for Data-Driven Decision Making

7 Internet of Things: What If, We Deliver a 1% Improvement? 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

8 IoE = Small Sensors + Data Analytics + (Real-time) Actions DATA SENSORS ACTION IoT Traffic will grow at 82% CAGR through 2017* *Cisco Visual Networking Index:

9 Defining the Internet of Things It s a Concept! The point in time when more things or objects were connected to the Internet than people

10 50 Billion Things Could Be Just the Bginning Computer (1ⅹ1ⅹ1 mm) Ultra-low-power processor Pressure sensor Memory Thin-film battery Solar cell Wireless radio with antenna Camera (1ⅹ1ⅹ1 mm) Size of a grain of salt 250x250 resolution Disposable Medical and security applications MEMS sensor (0.05ⅹ0.05 mm) MEMS: Micro-electronicmechanical systems Represents fourthgeneration sensor Source: Cisco IBSG, 2011; University of Michigan, 2011; Fraunhofer, 2011; Wikipedia, 2011

11 New Internet Inhabitants What to trees, cows, shoes, and your body have in common? Source: Cisco IBSG, 2011; Sparked, 2010; Nike, 2010; David Van Sickle, 2011; Proteus, 2011

12 IPv6: Connectivity without Meaningful Limits Source: Cisco IBSG, ; Steve Leibson, Computer History Museum; CNN

13 IoE: Connect the Unconnected? Connect the unconnected toaster Deliver content to the unconnected bread Embed the toaster connection and content delivery into legacy toasting process Results: Timely connection between people and weather content without requiring any additional efforts or changes in legacy process (but, eliminates a process of coming back to get an umbrella!)

14 Connected Services Enrich Mobility Life, Product Servitization The First Pure Electric Car BMW i3 BMW i3, The First Fully Connected Series Vehicle i Remote App i Navigation Tele-service BMW is investing in various connected service companies to expand customers brand experiences into mobility life Charging Routes Maintenanc e Receive detail information about the current status of the BMW i3 at any time (range display, battery, charge level, etc.) With Charge Control, the charging procedure at the charging station can be controlled or ended remotely Available charging stations can easily be sent to the vehicle in real-time Takes into account all relevant factors and show most efficient and quick route (traffic situation, battery charge level, driving style, traffic situation, topographical condition) Takes into account quicker way using alternative transport, shows the most current schedules and guides to an available parking space Driver is automatically notified when a service appointment is necessary and is able to contact the BMW i Partner at any time

15 IoE Enables Easier & Personalized Car Sharing Model, Business Model Change Background New Car Sharing Model Easier, More Effective Results Needs to provide customers with more effective way to monitor and manage cars than ZipCar Customers unmet needs towards simpler and easier usage of BMW cars Decreased number of cars sold over years Less demand due to economic crisis Powerful device such as smartphones emerged, attracting young customers Needs for using car still remain strong, though BMW Drive Now 1 Find and book via a smartphone app Mercedes Car2Go 2 Open and close with a RFID chip on the driving license 3 Activated by pressing the PIN Code to touch pad Use the touch screen to enter your PIN at the start, and to control the navigation and radio, which are automatically set personalized to the driver Created the easiest way of satisfying mobility needs Connect car information such as level of gas or electricity to customers via mobile app, which effectively support to choose a car Connect driver s license with RFID and enables personalize audio settings Price is applied automatically based on actual using time (minute level) The momentum of success has led to Launch of AlphaCity in 2012, which is an enterprise version employee car sharing service

16 IoE Connecting Demand & Supply Information Business Model Creation Insurance Companies Transportation-as-a-Service Exchange Biz. Model Vehicle parts suppliers Service Providers Smart logistics, Gas station membership service, Etc.. IT service developers Warehouse service providers Matches the demand with supply Freight services via fixed contracts & spot basis Intelligently calculate the most optimal routing & match the demand with optimal transportation mode Breakdown & Maintenance services/part buying In breakdown in transit, truck driver can send a command to closest highway gas station outlet for a pick up truck to tow away to closest OEM service center Truck owners get notified for maintenance service from registered OEM / Part mfg. service centers In-transit visibility & smart fueling Truck driver/fleet operator knows the best time to fuel Rating services Matched with the SLA and transporter rating accessed by customers in future for procuring services Documentation assistance Truck drivers can collect documents for onward journey or for any in-transit event Banking and Insurance Facilitates the financial settlement of the contracts & other activities e.g. fueling, maintenance etc. Sensor-embedded Trucks Shippers

17 Some of Cisco Offerings to IoE World

18 The Data Aggregation Challenge 500 Gigabytes Data generated by an offshore oil rig weekly 10,000 Gigabytes Data generated by a jet engine every 30 minutes 1.1 Billion Data points generated by sensors daily 1000 Gigabytes Data generated by an oil refinery daily 90% of the world s data Has been created in the last 2 years! 2.5 Billion Gigabytes Data generated worldwide daily

19 Why Distribute Computing? Traditional Computing Model (Terminal/Mainframe, Client-Server, Web) Data Center/ Cloud Fundamental differences between conventional web apps and IoT! Endpoint Web Apps assume: IoT is challenged by: Ample bandwidth Less bandwidth than data Effectively zero delay Potentially unacceptable delay Always connected Intermittent connectivity Large scale Extreme scale Low risk Catastrophic risk

20 Why Distribute Computing? Traditional Computing Model (Terminal/Mainframe, Client-Server, Web) IoE Computing Model Data Center/ Cloud Endpoint Low-latency Responsiveness Required Resiliency Security Data Grows Faster Than Bandwidth Data Center/ Cloud Fog Device

21 Analytics for Data at Rest vs Data in Motion Traditional model: Store First, Query Later Data-base waiting for Queries Input Data Fetch, Analyze, Report Data in Motion model: Process First, Store Optional Rules can express: Predicates and Filters Contextual/Dimension Data Aggregations Pattern Matching Categorization & Classification Sub-queries! Generate Actionable Events, Integrate with Policy/Mgmt System Query-base waiting for Data Fetch, Analyze, Report Input Data Store raw data or filtered data for further mining.

22 New Opportunities To Address Real-time Challenges Example: Smart Parking New Things Connected New Data Flows Process Innovation People Impact Parking spaces Parking meters Space availability Pricing Payment Enforcement Finding spaces Traffic wardens Citizens/drivers City planners Value Impact $$ Example: City of Nice s Connected Boulevard Internet of Everything Increase compliance by 30% City data sales Reduced congestion, time-to-park Dynamic pricing revenue increase

23 Fog Computing Connected Vehicle Cars to cars, cars to roadside units In-vehicle infotainment, real time local updates Smart traffic lights (SLT) Modifies cycle based on pedestrian and vehicle traffic Coordination with other lights to create green traffic wave Awareness of emergency services vehicles Modification of traffic cycle though FOG orchestration Real-time analytics performed locally Long-term analytics from SLT sent to cloud

24 Cisco IOx Platform Integration of Communication & Computation IOS + Linux = IOx Internetworking Operating System To process network Best open source for computing process Application Operation (SDK, BYOI, BYOA) IOx IOx Loaded into Router, Switch and IP Camera etc.

25 New Breed of App Developers The Fogrammer Device Fog Community of independent developers Community of Verticals/Industry developers ios/android Developers Fogrammers

26 Summary Described IoT and IoE and why it matters o World is changing & nothing can stop o Immense economic and society impact o Another era of industry conversion, service driven economy Key technology challenges and potential solutions o Converged, managed network Open standards based o Operations & resilience at scale Automation and self-healing o Security -- Innovative solutions for IoT cybersecurity o Distributed intelligence -- Fog and Data-in-motion o Application Enablement IOx WE can turn IoE into reality o Open, cross-community partnership o IoT Grand Challenges, Open Innovation Centers, Venture investment, Grand challenges

27 Thank you.