fast innovation requires fast it - cisco · by 2015 globally, m2m ip traffic will grow 20-fold ......

Fast Innovation Requires Fast IT

Accelerating Innovation with IoE

Joseph M. Bradley General Manager and Founder IoE Practice, Cisco Consulting Services @JosephMBradley

3© 2013-2014 Cisco and/or its affiliates. All rights reserved. Cisco Consulting Services

By 2020, about 50 billion

objects connected to the

Internet

In 2012 alone, we created

more data than previous

5,000 years

An estimated 77 billion apps

will be downloaded

during 2014

This year, the number of

mobile-connected devices

will exceed the number of

people on earth

2/3 of the world’s mobile data

traffic will be video by 2015

Globally, machine-to-

machine IP traffic will grow

20-fold from 2012 to 2017

Digital

Disruption

Digital

Disruption

By 2020, ~50 billion objects connected

to the Internet

In 2012 alone, we created more data than previous 5,000 years

An estimated 77 billion apps

will be downloaded during 2014

This year, the number of mobile-connecteddevices will exceed

people on earth

2/3 of the world’s mobile data traffic will be video

by 2015

Globally, M2M IP traffic will grow 20-fold

2012 – 2017

Digital Disruptors

Convergence of Mobile, Social, Cloud, and Data Is Driving Digital Disruption


Sources: Gartner, “Nexus Forces Fuel the Digital Workplace,” Jeffrey Mann, Matthew W. Cain, Chris Howard, April 2014; IDC, “IDC Predictions 2014:

Battles for Dominance – and Survival – on the 3rd Platform,” Doc #244606, December 2013; GE, “The Industrial Internet: Pushing the Boundaries of

Minds and Machines,” November 2012

Gartner GEIDC

Social

Mobile

Cloud

Information Nexus

Converging Digital Disruptions = Unique Inflection PointThe Nexus of Forces The 3rd Platform The Industrial Internet

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=i3UHrBvSdyPhKM&tbnid=UFQbQfC01Fxu_M:&ved=0CAUQjRw&url=http://www.gereports.com/new_industrial_internet_service_technologies_from_ge_could_eliminate_150_billion_in_waste/&ei=kYlVUsfYCZTd4AOOroHQCw&bvm=bv.53760139,d.dmg&psig=AFQjCNHx1WqB9gZv3buQlC5EdP2NnhWGZg&ust=1381423861562973

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=i3UHrBvSdyPhKM&tbnid=UFQbQfC01Fxu_M:&ved=0CAUQjRw&url=http://www.gereports.com/new_industrial_internet_service_technologies_from_ge_could_eliminate_150_billion_in_waste/&ei=kYlVUsfYCZTd4AOOroHQCw&bvm=bv.53760139,d.dmg&psig=AFQjCNHx1WqB9gZv3buQlC5EdP2NnhWGZg&ust=1381423861562973


IoE: The Networked Connection of People, Process, Data, and Things to Drive New Business Value

Delivering the right information to the right person (or machine) at the right time

Process

Physical devices and objects connected to the Internet and each other for intelligent decision-making; often called Internet of Things (IoT)

Things

Connecting peoplein more relevant,

valuable ways

People

Leveraging data into more useful

information for decision-making

Data


IoETotal IoE Value

at Stake

$19.0 Trillion

IoE Drives $19 Trillion In Value Over 10 Years

Private

Sector

$14.4TIncludes both industry-

specific and horizontal

use cases.

Public

Sector

$4.6TIncludes cities, agencies, and

verticals such as healthcare,

education, defense


Asset utilization:

$2.5T

Supply-chain / logistics

efficiency : $2.7T

Employee Productivity:

$2.5TImproved customer

experience :

$3.7TInnovation:

$3.0T

Increased Revenue:

$125B

Reduced Costs:

$740B

Employee Productivity:

$1.8T

Defense:

$1.5T

Citizen Experience:

$412B

Total IoE Value

at Stake

$19.0 Trillion

IoE Drives $19 Trillion In Value Over 10 Years

Private

Sector

$14.4TIncludes both industry-

specific and horizontal

use cases.

Public

Sector

$4.6TIncludes cities, agencies, and

verticals such as healthcare,

education, defense

TODAY’S INDUSTRY PAIN POINTS


Annual theft or

loss costs

$1B

Industry Pain Points

UTILITIES Oil & GasMANUFACTURING

Single minute of

downtime costs

$22K

Data generated not given to right person at right time

98%

IOE POSSIBILITIES ARE NEARLY ENDLESS

Cisco Confidential 11© 2013-2014 Cisco and/or its affiliates. All rights reserved.

IoE Possibilities for ManufacturingRemote sensing of objects

and environment

My yield will meet today’s production needs

In a plant, it’s not just about data…integrated control and information matters

Cameras deployed for monitoring and security

Subscribe to my status updates

Just plug me in! I am online and ready for

configuration with the line. Here is my configuration.

Clean me next shift

7100kWh of energy used today Everything has a URL

Sensors ActuatorsIntelligent Motor Control Terminals Audio Video


Subsea Production

System

Petrochemical/Refinery

Storage

LNG

Terminal

LNG Tanker

Oil Tanker

FPSO

Oil Rig

Data Center

Terminal

Headquarters

Oil/Lube

Connected pipelines

Connected Refinery D

ow

nstr

ea

mM

idst

ream

Upst

ream

Remote Operations

Collaborative Operations

Connected Processing

Facility*

Connected Wellhead*

Connected Oilfield

* to be released in H2FY15

Secure Ops

IoE Possibilities for Oil & Gas


IoE Possibilities for Mining


0159

0159

0159

IoE Possibilities for Utilities


IoE Possibilities for Retail

Associate tablet

Customermobile

Integrated video surveillanceWi-FiGesture / facial

recognition

Digital signage

Parking

Secure Big Data infrastructure,

analysis, and action

Big Data repository

Fast data processing

Actionenablement

Intelligence from

cloud / fog

INTERNET OF THINGS


Cloud &Services

Lighting Poles

Municipal Command& Control Center

SmartGrid

BuildingOptimization

CityWiFi

Home Energy Mgmnt

Source: Intel

Traffic Flow Optimization

FactoryOptimization

TrafficCamerasAutomated

Car SystemIntelligent Digital

Signage

ConnectedAmbulances

Parking

INTELLIGENTCITY

INTELLIGENTBuilding INTELLIGENT

HIGHWAY

INTELLIGENTCommunity

IoE Possibilities for Cities

LogisticsOptimization

ARE YOU READY?

Are You Ready?

CIOCEO

How Can I Do This?

Cisco Confidential 20© 2013-2014 Cisco and/or its affiliates. All rights reserved. Cisco Consulting Services

Challenges for CIOs

IoESupercharges

IT Complexity –and IT

Challenges

Apps Are the Oxygen

of Business (but they can smother IT)

Lines of Business

Take IT into Their

Own Hands

Service Orchestration Has Been the CIO’s ‘White

Whale’

FAST IT: THE SOLUTION FOR CIOs IN THE IOE ERA


What Is Fast IT?

Fast IT is the IT operating model for the

IoE era. It is what the CIO needs to do

to drive true business transformation.


SECURE

Defend against

attacks and

mitigate threats

dynamically

SMART

Create intelligent

capabilities and

services that

fuel growth

SIMPLE

Simplify your

infrastructure

and integrate

across silos

Fast IT: Three Key Principles

Reduce Complexity to Lower Costs

Automate

Unify

Use abstraction and programmability of resources

across domains to automate and orchestrate

manual, error-prone, and labor-intensive IT tasks

and workflows and to drive down costs

Converge and optimize discrete IT domains

(network, security, storage, compute) to manage as

a “pool” of physical/virtual, mobile/fixed, on- and off-

premise resources

Create

Programmability

Enable open and programmable infrastructure, ready

to respond intelligently to application requirements;

accelerate provisioning of needed resources

1

2

3

Capitalize on Intelligence for More Agile Operations

Tap Intelligence

Harness

Data in Motion

1

2

3

Use infrastructure analytics to optimize operations

end to end so the infrastructure can respond

intelligently and automatically to changing

application and security demands

Push compute and analytics capabilities to the

network “edge”; correlate data in real time to

respond to fast-moving changes

Drive Policy

Create centralized policy and management to

streamline infrastructure changes, reduce errors,

and drive repeatability

Defend Against Attacks Dynamically

Expand

Security

Perimeter

Improve

Visibility

Respond

Faster

1

2

3

Through analytics, increase visibility around

threats, users, behavior, and infrastructure

Use identity- and context-based information and

behavior to improve security response

Protect against advanced malware and threats

across all infrastructure and the entire security

continuum; detect and quarantine cyberattacks


Business Benefits“Invest to Win”

IT TCO Benefits“Save to Invest”

Substantial TCO gains in past 10 years, driven by automation, outsourcing, virtualization

Now, next wave of savingsis at hand with Fast IT: 20-25% TCO reduction

<20% of IT spend currently devoted to innovation

Implication: Fast IT creates an “IoE dividend” — savings can be reinvested for innovation, doubling what IT spends on transformation

Estimated Financial Impacts of Fast IT*

$17.1

$8.2

$7.3$2.9

$2.2

$10.9

$7.8$3.4 $59.6

DataCenter

AppDev.

Network AppSupport

End-UserComputing

FasterTime-to-Mkt

ProductivityGain

ImprovedSecurity

TOTAL$0

$10

$20

$30

$40

$50

$60

Annual B

enefits

($M

)

*For a representative company with $5 billion in annual revenue

Fast IT Promises Twice the Savings, Double the Innovation


Software-defined IT: A requirement for application agility to reduce complexity,

and as an underpinning for cloud, security, and mobility

Fabric of Clouds: The best IT organizations will leverage a diverse ecosystem of

clouds to gain the right mix of scale and capability.

Intelligence at the Edge: Data in motion represents the next competitive IoE

frontier — intelligence “at the edge,” fog computing enable real-time business

Seamless Mobility: IT must treat mobile and fixed assets as one to realize the

opportunities of connected experiences as a key business differentiator

1

2

3

4

Expand security perimeter: Evolve to a platform-based, automated-threat model for security where the network can detect and quarantine attacks across domains5

IT must lead the

transformational journey

What IT Must Start Doing Today


IT Transformation for Fast Innovation


Let’s Get Started

[email protected]@JosephMBradley JosephMBradley

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JosephMBradley

fast innovation requires fast it - cisco · by 2015 globally, m2m ip traffic will grow 20-fold ......

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