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1/11/2014
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Michael Endler
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CES 2014: Cisco's Internet of Everything Vision

Sensor-equipped objects and their networks -- what Cisco calls the Internet of Everything -- will reshape your life, Cisco CEO John Chambers says. Take a closer look.
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Cisco had an exhibit on the main floor of the International Consumer Electronics Show for the first time this year. That might seem odd, given that Cisco has spent the last few years jettisoning its consumer-oriented products, such as the Flip mini-camcorder and Linksys networking gear.

But Cisco CEO John Chambers believes his company's Internet of Everything (IoE) plan will alter the trajectory of virtually every person on the planet, consumer and professional alike.  Cisco doesn't plan to sell directly to consumers, but whether it's smarter power grids, personalized retail experiences, improved industrial efficiency, or the ability to control the infrastructure of an entire building with a smartphone app, IoE will be "bigger than anything that's ever been done in high tech," Chambers promised during his CES keynote.

To make his case, the Cisco boss enlisted some non-traditional help, including a brief but amusing appearance by comedienne Sarah Silverman. But he also came armed with his customary barrage of statistics, none more eye-opening than the $19 trillion in new revenue Cisco believes IoE can generate by 2020.

Buoyed by exponential growth in our ability to capture and analyze data, new tech will "get the right data to the right device at the right time to the right person or machine to be able to make the right decision," he declared, arguing that even seemingly inane concepts like sensor-equipped garbage cans could produce billions of dollars in efficiency-based savings.

"If you look back a decade from today at the impact of the Internet of Everything, I predict you will see it will be five to 10 times more impactful than the whole Internet has been today," he said.

How is IoE supposed to revolutionize the world? In the case of smart trash bins, Chambers said embedded sensors can reduce calls to waste management by allowing officials to see how full a can is, whether hazardous materials are inside, how pickup efforts can affect traffic patterns, and even whether a given garbage can's contents might contain a particularly offensive odor. These insights might not seem ground-breaking alone, but Chamber said that together, they add up to billions in savings.

Chambers offered a range of other examples, from parking meters that adjust their rates based on demand, to TV programs that allow viewers to easily purchase items they see on the screen, to connected cars and home automation systems, and even clothes that notify the wearer when she is getting sick.

At CES, Chambers discussed some of Cisco's IoE plans for the first time, such as the company's cloud-based Videoscape TV delivery platform for service providers. But much of what he said echoed remarks he and other Cisco execs have made over the last year, during which the company showed itself to be one of the biggest proponents of connected infrastructure and the new breed of applications this infrastructure will support.

Cisco's smart grid and smart city projects have been in the works for years, but Cisco's messaging has grown bolder over the last 12 months. Last January, company execs touted IoE possibilities that seemed pulled from science fiction, such as humans who live to be hundreds of years old thanks to, among other things, personalized medicine and better collection of biometric data through wearable technology and sensor-embedded household objects.

In February, Chambers told business and government leaders visiting Cisco's San Jose, Calif., headquarters that private industry stood to gain $14.4 trillion from IoE by 2020. The $19 trillion prediction he championed at CES built on this figure, lumping in potential profits from the public sector.

"We're all in. We're making this our cornerstone of our campaign to become the number-one IT company," Chambers said. "It isn't a billion-dollar commitment. It's way, way beyond that in terms of the resources and time we're going to put behind it."

In June, Cisco released a report that claimed corporations had generated over $600 billion in IoE-related profits so far that year. The company spent 2013 offering new examples of the technology's potential, from sensor-equipped basketballs that give coaches and players real-time insight into the game, to new advances in telemedicine, to personalized retail experiences that rely on location-based analytics derived from shoppers' phones.

Despite its leaders' bullishness, Cisco has faced setbacks over the last year. Thanks to slowing sales in its traditional networking gear and weak demand from emerging markets, the company cut its sales growth outlook in December. Cisco also announced plans earlier in the year to cut 5% of its workforce as it realigns its businesses.

Still, Chambers remained self-assured at Interop New York in October, telling InformationWeek editor-in-chief Rob Preston that the company should not be underestimated. One reason for the confidence? IoE's potential is real.

Indeed, Cisco isn't the only company betting on connected devices, pervasive sensing, and smarter infrastructure. The basic concept behind IoE goes by other names, such as the industrial Internet, or the Internet of Things. Regardless of the moniker, the technology has been touted by GE as a $10 trillion to $15 trillion opportunity over the next 20 years, and Intel dedicated much of its CES presence this year to technologies that tap this vein.

Cisco's view is that IoE technically differs from the Internet of Things; IoT is composed of connected objects, while IoE encompasses the networks that must support all the data these objects generate and transmit. "Software by itself won't get the job done," Chambers said at Interop in October, arguing that IoE demands data center software and hardware that work in concert.

This distinction represents one of the main ways the company has differentiated its software-defined networking strategy from those of its competitors. Connected, location-aware applications require more bandwidth, more intelligence on the edge of the network, new considerations for security and orchestration, and more cohesive, programmable infrastructure, Cisco argues, and it held an Internet of Things World Forum in Barcelona last fall in an attempt to unify industry players around common standards. The company also recently established a business unit dedicated to advancing the concept.

How does Cisco foresee this technology changing your life? Explore our slideshow for a peek into Cisco's vision for the Internet of Everything.

Michael Endler joined InformationWeek as an associate editor in 2012. Michael graduated from Stanford in 2005 and previously worked in talent representation, as a freelance copywriter and photojournalist, and as a teacher.

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danielcawrey
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danielcawrey,
User Rank: Ninja
1/11/2014 | 11:58:07 AM
Security
I am glad Cisco is getting involved with this. One of the reasons why is because I think that security could become a major issue down the road. Fortunately, Cisco is pretty good in that respect. But with all of these new embedded machines becoming part of the internet of things, there will need to be some kind of new technology that allows some sort of software firewall or some sort to block these machines from all getting hacked.

A doomsday scenario, but highly likely. 
Laurianne
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Laurianne,
User Rank: Author
1/13/2014 | 12:12:21 PM
Re: Security
The recent retail store data breaches add credence your concerns. If the tech industry hasn't gotten that part of security right (how many years ago was the TJ Maxx breach?), how ready are we to take on the security of Cisco's highly-interconnected vision?
epjones
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epjones,
User Rank: Apprentice
1/11/2014 | 12:14:15 PM
city or company
In your slide featuring the mayor of barcelona you estimate how much the "company"has saved. An ironic error as technology enables corporatocracy creep. It also highlights the necessity that cisco be held to its promise of transparecy. I do not see a word in here about individual opportunity to opt in our out of, for instance, the snart car features, or any other mention of privacy by design informing cisco's direction here.
Michael Endler
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Michael Endler,
User Rank: Author
1/11/2014 | 3:38:40 PM
Re: city or company
Thanks for the catch, epjones. 

I definitely relate to some of your concerns about corporatocracy, and I agree that Cisco will have to be extremely transparent if this technology is going to fulfill Chambers's predictions. The same goes for its partners, who are the ones actually implementing Cisco's stuff for the end user. 

The second slide overviews security and privacy to the extent that Chambers talked about it at CES-- i.e. mostly broad allusions to users being able to opt in or opt out, and to users being "in control." But as I mentioned on the same slide, Chambers didn't elaborate on this attitude, or how it might vary across different products and services-- e.g. how is opting in or out of a television service different from opting in or out of a smart car service?

I actually heard someone at Cisco suggest once that data from the "quantified self" could one day be used to dictate your health care costs in the same way that credit scores are currently used to dictate your loan options. That sounds positively dystopic to me. That said, I've probably talked to Cisco execs a dozen times in the last year about IoE, and the importance of "opt in/ opt out" transparency has been a recurring theme. I was also there early last year when Chambers pitched business and government leaders on the idea of an Internet of Things World Forum, and everyone present appeared appropriately aware of the tech's privacy and security implications.

In the end, if IoE is done right, I think it can be profoundly positive-- but if it's not done right, we could have profound results of another sort.
Joe Datacenter
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Joe Datacenter,
User Rank: Apprentice
1/11/2014 | 5:55:55 PM
Re: city or company
Michael, I find the "quantified self" concept scary as well. I am not that keen on IoT in my house or on my body, but I do see huge possibilities for resource management and dealing with some of the very critical problems that face us as humans, rather than for mere convenience. I'd like to see more cities like Barcelona carefully monitoring power and water so there is enough to go around for everybody. I know several power companies offer household energy management tools, but I'm a little afraid of that just yet. Half the time my cable TV doesn't even work right!
Thomas Claburn
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Thomas Claburn,
User Rank: Author
1/13/2014 | 7:45:40 PM
Re: city or company
>In the end, if IoE is done right, I think it can be profoundly positive-- but if it's not done right, we could have profound results of another sort.

I would suggest that the issue is best framed by asking who is being served. If it's the product owner, so much the better. If it's the service provider or some other third party, there's a problem.
Li Tan
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Li Tan,
User Rank: Ninja
1/13/2014 | 10:51:04 PM
Re: city or company
I would appreciate IoE for end-user product instead of service provider, government agency or any 3rd party stuff. The personal information security is already of big concern nowadays. I cannot imagine if we are surrounded by smart equipments with IoE built-in without knowing what they are doing there...
captainhurt
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captainhurt,
User Rank: Apprentice
1/11/2014 | 7:18:46 PM
too much talk , not enuff action
People and companies have been talking about sensor webs/nets in building materials for decades. no action. 

People and companies have been talking about bio-monitors, replacing doctor checkups and giving continuous realtime blood indictators for decades. no action.

yawn. its all hawkers and con artists who's mouths are writing checks their companies cannot deliver.
ChrisMurphy
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ChrisMurphy,
User Rank: Author
1/13/2014 | 5:43:44 PM
Re: too much talk , not enuff action
I agree we've been hearing some of these dreamy examples for ages, like automated health monitoring that remains a distance dream. But it's a mistake to dismiss the big idea because some examples are failing. Listen to ConocoPhillips CIO talk about using sensor data from gas and oil wells to optimize performance (audio link below). The big change was being able to collect data every minute, instead of daily, and the company estimates some wells can get up to 30% performance as a result.

Here's that link to our CIO interview:

 

http://www.informationweek.com/radio.asp?webinar_id=72

 
sukebe
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sukebe,
User Rank: Apprentice
1/11/2014 | 10:38:30 PM
great for Cisco partners
I'm sure all this will make the NSA's job much easier.
RobPreston
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RobPreston,
User Rank: Author
1/13/2014 | 11:59:01 AM
Bigger Picture
Cisco has aimed a lot of its marketing at consumers for years, and not because it was pushing Flip phones and Linksys routers. It's the same reason IBM pushes its Smarter Planet messaging to consumers: It wants everyone -- consumers and business people alike -- to equate its brand with the modern technology-based economy and world. It's not a product message.
Lorna Garey
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Lorna Garey,
User Rank: Author
1/14/2014 | 1:30:09 PM
Re: Bigger Picture
Agreed, Rob. The Watson commercials are particularly good I think. What surprises me most about  this Cisco CES event is that it features Silverman. I find her mildly amusing, but she's not exactly a safe, "corporate" choice - quite the contrary. She has the potential to get Cisco the exact wrong kind of mainstream publicity. 
mdbco
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mdbco,
User Rank: Apprentice
1/13/2014 | 3:35:55 PM
IOE
Trade off,

Evolutionaqry internet on the way

Any surveys as to:

INVESTMENT

TIME FRAME

PAY BACK OR RETURNS

Get something /Give something

Nate

 
MichaelK403
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MichaelK403,
User Rank: Apprentice
1/13/2014 | 4:58:17 PM
The sky's the limit
Where there's value and benefit for mankind, we should all get behind this!  As many above have already stated.  Let's try to be sure we use our collective innovative and collaborative powers for Good, not Evil!
WKash
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WKash,
User Rank: Author
1/13/2014 | 6:57:25 PM
Public sector benefits
Interesting to note that Cisco released a study just before Chambers' talk, projecting the public sector (including the defense and education sectors) could potentially generate $4.6 trillion in savings and new revenue streams worldwide over the next 10 years.  But having the ability and collecting on it are two different things.

 
cbabcock
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cbabcock,
User Rank: Strategist
1/13/2014 | 7:11:36 PM
The value of the network goes up the more you put on it.
We used to say the value of the network goes up as more people become part of it. Now we say, the value of the network goes up the more nodes -- people and devices, and systems to anlyze people and devices -- are on it. Chambers is just expanding the old Sun Microsystems mantra about the value of the network.
aquabella
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aquabella,
User Rank: Apprentice
3/9/2014 | 4:57:13 PM
The smarter The devices get the Dumber we get....

Looking at my Grand Children sitting with Ipads, Smartphones, Tablets, Laptops, I asked them a simple question. Do any of you know How to whistle... The reply was Why would we want to whistle.

Answer from me is Because we Can. You might not never need to but believe it or not we can.

Looking out the window it was a Nice sunny day outside a Little cold and still snow on the ground.

I asked them all to come outside with me and lets play in the snow. My 3 Grandchildren said why they are having fun on their Devices...

I then grabbed a small ball and a bag of small pretzels and asked if any one wanted to play JAX. what is that Grandpa. They all went back to Laptops cell phones and Tablets Fast... I started playing JAX on the table Eating each pretzel I got picked up... They asked if they can have some... They can have the ones that they pick up as JAX.....

MY POINT IS as our technology gets smarted Our children are getting Dumber...

Who Built the world wide web.... Did they play JAX... DID John Chambers Play Jax. did Bill Gates Play JAX.... Did anyone 35 and older in the Industry Play JAX.... MY guess is YES... what will the world become when MY Grandchildren Get Older and ready to get into Living Life... what do they have to look forward to when they can not even enjoy a simple game of JAX... Hop Scotch. Kick Ball, Hullahoops Even Kick the Can.

The thing that is Missing Mr. Chambers is OUR CHILDREN... In My Case Grandchildren....

you want to look at the Future. Spend a week at an Elementary School THEY NEED YOUR HELP.

you will be lucky if you live the next 20 years I know I will not....

But My Grandchildren will be... so you want to make them Dumber and Let the DEVICE think for them Let the Devises Monitor there every move from Brushing Teeth to Making every Choices for them...

The INTERNET OF EVERYTHING  aka IoE will just Make us all Dumber... make us even Lazier than we are now....

How will this help our kids be Smarter. we need to work on our future OUR KIDS

Matt Adragna

54 yo Grandpa Living in Maine

PS: We all Played Jax with the pretzels until they were all gone... Unfortunatlly they all went back fast to Laptops Iphones and Tablets as soon as they could/

 

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