This week I’m excited to participate in an event we are organizing in Chicago, home of the 2014 Internet of Things World Forum. We’re meeting with some of our partners and customers as we make a few joint announcements – including a new IoE Innovation Center in Barcelona, and showcasing some new solutions built on our platform by some of our partners. Additionally, I’m getting a preview of some of the amazing smart & connected deployments in Chicago – a preview for the IoT World Forum.
I am writing this blog as I gear up to lead Cisco’s Internet of Things (IoT) Systems & Software Group. Over the last few weeks I’ve spent time getting to know the group and have been struck by the tremendous energy and focus on customers and partners the team has. I’m also excited about how dynamic the Internet of Things space is.
While we’ve calculated the total economic value at stake for Internet of Everything by 2020 – $19T – and the number of potential connected devices – 50B – these nearly unfathomable numbers may, honestly, not pan out exactly to the decimal. The Internet of Everything could be smaller or, more likely, much much larger – but the overall point is that more and more people, process, data, and things are connecting. Professor Michael Nelson of Georgetown University has said that “Trying to determine the market size for the Internet of Things is like trying to calculate the market for plastics, circa 1940.” At that time it would have been nearly unfathomable for the numbers of existing things – milk containers, furniture, industrial components – to be made into plastic. And just as plastics have pervaded every part of our lives and enabled new industries, the connections created by Internet of Everything will too. I think that’s a great way to think about the untapped potential of this market. Read More »
Tags: Internet of Everything, internet of things, IoT, operational technology, OT, service providers, value at stake
Connecting the Unconnected
“The Internet of Things is the next technology transition where devices will allow us to sense and control the physical world by making objects smarter and connecting them through an intelligent network”, Lindsay Hiebert, Senior Marketing Manager, Internet of Things, Cisco Systems
The Internet of Things in a Manufacturing Plant Environment
The Internet of Things is the network of physical objects accessed through the Internet. These objects contain embedded technology to interact with internal states or the external environment. This technology allows objects within such places as manufacturing floors, energy grids, healthcare facilities, and transportation systems to be controlled from virtually anywhere in the world. This connectivity also means more data can be gathered from more places, with more ways to increase efficiency and improve safety and security. The Internet of Things and the Internet of Everything (people, process, data and things) is about connecting the unconnected.
Read More »
Tags: 14.4 Trillion Value At Stake, 700 IoT Products and Solutions, Application Enablement Platform, Cisco, Cisco IP Cameras, cloud, connecting the unconnected, Energy Grids, Fog computing, Heathcare Facilities, Internet of Everything, internet of things, IoT, IoT Partner Eco-System, IOx Framework, IP67 Rated, Manufacturing floors, security, Transportation
As the Internet of Everything (IoE) continues to drive one of the most sweeping market transitions in history, organizations will need to be hyper-aware, predictive, and agile. And IT will demand an infrastructure that is flexible enough to keep pace with rapid change and fast innovation, as it responds dynamically to ever-rising threat levels. Above all, it must support business leaders looking to capture their share of the $19 trillion in IoE-related value at stake.
But a rethink on the traditional role of IT is critical. Today, IT cannot simply continue “keeping the lights on.” More than ever, IT must partner with the business as an orchestrator of services and a true leader in innovation. The new IT operating model for the IoE era is Fast IT. And it enables more efficient processes, better asset utilization, an increasingly productive employee base, and improved customer experiences.
Fast IT is the way forward for businesses looking to compete and thrive in the rapidly changing IoE economy. Is your organization ready for the transformation?
Here are a few questions to consider as you evaluate your organization’s readiness:
- How confident are you in your current network’s ability to propel your business into the future?
- What are your top three concerns about your network?
- What are the criteria you see as crucial for your organization to adopt a Fast IT model?
- How will next-gen networking affect your IT staff, role and influence?
Join me on Twitter this Friday, July 18 at 10 a.m. PST/1 p.m. EST for insights and feedback about the #FutureOfIT, the #InternetofEverything and your organization in the #InnovateThink Tweet Chat.
Follow @JosephMBradley to learn more about the Internet of Everything and how companies must embrace Fast IT to fully maximize the value of the Internet of Everything for both themselves and their customers. Join the discussion by simply using hashtags #InnovateThink and #FutureOfIT on Twitter to join the conversation.
Learn more about the role of Fast IT in an Internet of Everything world:
Tags: Cisco, Fast IT, Internet of Everything, internet of things, InternetofEverything, IoE, IoT, network, Tweet Chat, tweetchat
Over the last couple of months we have talked about the need to think about your IT model in a new way in order to thrive in the Internet of Everything (IoE).
As we know, the Internet of Everything—the intelligent connection of people, processes, data and things—has exploded in recent months. Alongside that growth, the pace of change across business and technology is occurring faster than ever and IT must innovate at a speed and scale to match. In order to capture the $19 trillion in IoE economic value, IT requires a new model.
This new model is Fast IT. Fast IT transforms and simplifies IT operations. It addresses the requirements IT needs to align to today’s business changes and organizational requirements.
In the IoE era, every company, no matter how venerable its brick-and-mortar roots, must think of itself as a technology company — creating digital capabilities that transform customer experiences, foster new revenue streams, spur productivity gains, or speed execution. Fast IT can drive this transformation.
Recently, Cisco undertook a multipronged research effort. We engaged Global Market Insite (GMI), a division of Lightspeed Research, to conduct a comprehensive global survey on the impacts of IoE on the IT function, and the extent to which Fast IT capabilities have been addressed from both a strategic and an architectural standpoint.
This soon-to-be-released research, the results of a comprehensive survey of more than 1,400 senior IT decision-makers across multiple vertical industries, provides insight into how IT can more successfully prepare for – and capitalize on – the Internet of Everything (IoE).
To learn more about our study, read the full article: Survey Says: Fast IT is a Game-Changer.
Tags: Fast IT, Future of IT, Internet of Everything, IoE, jim grubb
If cities would set aside dedicated lanes on highways or exclusively autonomous sectors in cities, autonomous vehicles could probably become reality as early as 2015 to 2019 on dedicated highway lanes and 2020-2024 in dedicated city sectors. Mixing with and managing the human errors of drivers in conventional vehicles will move the time horizon for fully autonomous vehicles out to 2018 to 2022 on mixed highway lanes and post 2025 in mixed urban driving sectors.
Today, technology is assisting drivers in preventing crashes (e.g., line keeping assist) and is allowing drivers to delegate driving to the “autopilot” under certain circumstances (e.g., adaptive cruise control). It is available in many premium models and also becoming an option in other vehicle categories for all who are willing to pay a premium for a safer ride. Cruise, a startup just announced plans to launch a $10,000 autonomous aftermarket kit for newer Audi cars early 2015. While the call is still out whether upgrading conventional vehicles to become autonomous is a viable strategy, it is a good example for how quickly the technology is evolving.
Technology companies and automakers have fully autonomous vehicles that have driven hundreds of thousands of miles on our roads to date. The time when we can buy and ride in a fully autonomous vehicle will not only depend on the autonomous vehicle technology the industry is maturing at rapid pace, but even more on the driving space we allow such vehicles to drive in. The options are best described in a four quadrant grid: One axis differentiates highway and city driving, the other axis distinguishes exclusive or non-exclusive driving space, meaning whether autonomous vehicles operate on dedicated lanes or city sectors or have to mix and cope with the mistakes of conventional drivers.
An investment in driverless vehicles will likely break even within one to six years, depending on the readiness of the auto insurance industry to adapt rates to the lower risks of autonomous vehicles and on owners’ willingness to share autonomous vehicles.
The fixed ownership cost of the average U.S. passenger vehicle is approximately $8,700 per year:
- $4,300 depreciation, financing
- $1,900 license, parking, warranty, etc.
- $1,500 crash related cost born by the owner
- $1,000 auto insurance
Human error accounts for over 90% of crashes. Assuming autonomous vehicles can eliminate 80% of this risk, the average vehicle owner would save approximately $1,800 (80% x 90% x $2,500) each year.
Conventional vehicles are used less than 5% of their usable time. The convenience of being able to call an autonomous vehicle when it is needed and easily release it for others to use when it is not needed is likely to make autonomous car sharing a much more convenient and cost-efficient mode of transportation for many. Assuming the remaining ownership cost ($6,900) can be shared by 3 users, this would equate to additional savings of $4,600 per user.
For the purpose of this “back of the envelope calculation”, let’s assume that structural design savings and the incremental autonomous cost are a wash. Virtually crash-less autonomous vehicles would require less structural and other safety features (e.g., fenders, airbags) built into vehicles, thus reducing cost and weight.
According to a recent Morgan Stanley study, driverless technology is estimated to initially add about $10,000 to the cost of a vehicle (less than the cost of a battery pack for an average electric vehicle). At the above savings rates, the investment in an autonomous vehicle would pay back in year six at $1,800 crash risk related savings, and in year two at $6,400 savings including the sharing option.
With mass market adoption, the autonomous upgrade cost is expected to go down to about $5,000 per vehicle. At this price point, the investment in an autonomous vehicle would pay back in year three at $1,800 crash risk related savings, and in less than a year at $6,400 savings including the sharing option.
Tags: Autonomous Vehicle, Connected Transportation, connected vehicle, Internet of Cars, Smart Connected Cities