Futurists have long envisioned a world where fabulous innovations transform our lives in mind-boggling ways. And while some of their ideas may remain far-fetched, the most exciting thing about their future is that so much of it is already here, today (flying cars notwithstanding).
Indeed, we are living in an age of unprecedented technological transformation, one that stands to eclipse even the first Internet boom. This next wave of change is being driven by a massive upsurge in connectivity, from 10 billion connected things today to 50 billion in 2020. The world may seem connected. But only 1 percent of the objects around you are endowed with smart connectivity. That is changing fast. Your car, your refrigerator, your parking space, the bridge you drive over, the shelves at the local retailer, and the supply chain that feeds them — all of these “dark assets” are being “lit up” with smart connectivity, altering our lives in profound ways.
Cisco calls this the Internet of Everything (IoE). We define IoE as the intelligent connection of people, process, data, and things. And, of course, the “people” element is paramount, since the whole point of technology is to create a better life experience for everyone.
At Cisco, we estimate the Value at Stake from this transformation to be $14.4 trillion for the private sector alone over the next 10 years, which represents an opportunity to increase global aggregate corporate profits by about 21 percent.
Cisco’s projections are based on deep research and analysis into potential use cases. But we are not the only ones sensing the potential impact of this game-changing, global transformation.
The most wonderful time of year is upon us. With the holidays just around the corner, many will be crossing off wish lists by shopping via their laptop, tablet or smartphone. Last year I was one of those that waited until the last minute to shop for the holidays and by the time I arrived at the mall, there was virtually nothing left to buy for my nieces! I had to fight for a parking spot and was exhausted after the first half hour!
A recent prediction from e-Marketer states that online and mobile spending will increase about 15.1% year over year this November and December, showing just how quickly the Internet of Everything is enabling more e-commerce spending than ever before.
With this increase in anytime, anywhere online shopping, how are delivery companies meeting this influx in demand? How are they ensuring on-time deliveries? How are they lowering operating costs and expanding reach? Over the next few months – and coincidentally during the busiest shopping time of the year -- I’ll be discussing how advances in cloud and mobility are propelling the Internet of Everything and transforming the shipping industry. And this change is starting with the customer.
It’s fitting that we’re in NYC this week, talking about energy management during Cisco’s Internet of Everything tour. And that’s because it’s an issue that’s left $24.60 billion worth of energy savings on the table – enough to power NYC for 5 years!
The issue at hand revolves around the lack of visibility into IT environments and connected devices, specifically on much energy is being consumed when something isn’t actually being used. In Cisco’s Internet of Everything vision, connectivity within the energy management sector will help automate a process that’s too cumbersome to execute manually. This includes everything from turning off computers when they’re not used to powering down ATM machines when there’s no foot traffic.
Speaking of ATMs
Joining us at the event this week was Sparkasse, one of the largest banks in Germany with more than 400 locations, 350,000 employees and 3 trillion Euros in assets. At first, Sparkasse leveraged energy management technology to turn on and off PCs in accordance with when banks were open – it has since expanded to many other IT devices, including ATM machines. After deploying energy management across its networks, ATMs across the country were optimized to power down during hours when they were not in use, specifically within indoor areas where closing hours are involved. Sparkasse didn’t need to physically touch any of the machines or install software individually. All of this was done automatically over the network. Savings have been in the millions annually, cutting down both overall energy consumption and the bank’s carbon footprint.
Schools and Hospitals
On October 31, Cisco held an energy management roundtable with customers from both the education and healthcare verticals. On hand was Mark Hennessee, District Energy Manager for the Hammond School District (Indiana, K-12), who talked about how visibility into his districts’ plug load has resulted in 35% less power consumption and annual projected savings of $31,500 – even more when you include an incentive check from the local utility provider.
Jan Pieter Evenhuis, IT Consultant of the Nij Smellinghe Hospital located in the Northern Dutch town of Drachten was also in attendance to talk about the challenges of energy management in the context of a 24/7 operation like a hospital. The level of visibility that was provided into their IT environment drove upwards of 30% in energy consumption reduction.
The Road Ahead
As we continue to explore the issue of energy management, enterprise IT environments and devices is the start of a plethora of other verticals that face this problem. As we saw with Sparkasse, it’s often things you don’t expect – like the ATM machines at your local bank. In a world where connected “things” can be choreographed to power on and off at the most optimal times, you open up the opportunity to make the world a little greener and help organizations of all sizes save money.
In today’s world of the Internet of Everything (IoE), we are changing the expectations of customer experiences. Through wearable technology, wireless location-based services and even video analytics, companies can customize every interaction with the information provided to the customer.
We aren’t just talking about tangible products. Think about a concert venue where thousands of people come together for their favorite music artist. Read More »
I am attending South Korea’s Big Data Forum in Seoul, and one question here is, “How big is Big Data?” My friend and colleague Dave Evans has pointed out that by the end of this year, more data will be created every 10 minutes than in the entire history of the world up to 2008. Now, that’s big!
Much of this data is being created by billions of sensors that are embedded in everything from traffic lights and running shoes to medical devices and industrial machinery—the backbone of the Internet of Things (IoT). But the real value of all this data can be realized only when we look at it in the context of the Internet of Everything (IoE). While IoT enables automation through machine-to-machine (M2M) communication, IoE adds the elements of “people” and “process” to the “data” and “things” that make up IoT. Analytics is what brings intelligence to these connections, creating endless possibilities.
To understand why, let’s step back and take a look at the classic approach to Big Data and analytics. Traditionally, organizations have tended to store all the data they collect from various sources in centralized data centers. With this model, if a retailer wants to know something about the buying patterns of a certain store’s customers, it can create an analysis of loyalty card purchases based on data in the data warehouse. Collecting, cleansing, overlaying, and manipulating this data takes time. By the time the analysis is run, the customer has already left the store.
Big Data today is characterized by volume, variety, and velocity. This phenomenon is putting a tremendous strain on the centralized model, as it is no longer feasible to duplicate and store all that data in a centralized data warehouse. Decisions and actions need to take place at the edge, where and when the data is created; that is where the data and analysis need to be as well. That’s what Cisco calls “Data in Motion.” With sensors gaining more processing power and becoming more context-aware, it is now possible to bring intelligence and analytic algorithms close to the source of the data, at the edge of the network. Data in Motion stays where it is created, and presents insights in real time, prompting better, faster decisions.