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Three Ways IoT is Impacting the #InternetOfEverything

As a key enabling technology to the Internet of Everything (IoE), the Internet of Things (IoT), is connecting new places and objects. Manufacturing room floors, energy grids and wearable devices are just a few examples of the millions of objects coming online at an unprecedented pace.

These “things” are creating vast and increasing amounts of data and sharing it over the Internet – largely via machine-to-machine connections. It is one of many important technology transitions taking place today that is making the Internet of Everything a reality.

The result is “driving market attention to the business opportunities afforded by connecting physical objects to the Internet,” according to a recent MachNation whitepaper. In fact, MachNation expects IoT to be over more than a $4 trillion industry by 2024!

So, how can today’s proliferation of connected devices and sensors bring organizations closer to capturing a share of the $19 trillion in IoE value at stake over the next decade?

Recently, I had the chance to participate in a new Future of IT podcast episode with Steve Hilton, co-founder and Managing Director at MachNation. We discussed how today’s IoT solutions are impacting the evolution of the Internet of Everything and ultimately, business outcomes. You can listen to the entire podcast recording via iTunes.

Here’s a closer look at three ways the Internet of Things is impacting the Internet of Everything and what it means for your organization:

#1: The Internet of Things is part of the Internet of Everything.

It’s crucial to understand that the Internet of Everything is the coming together of the Internet of Things, mobility, cloud, big data and analytics, and social.

The Internet of Everything gives people, businesses, communities, and countries the resources they need to collect and access data and turn it into valuable insight.

For example, there is an application that I’ve been using for my GPS watch that includes sensors you wear on your body. In real-time, I can upload the data collected to the cloud and I can review where I’ve been and what I’ve been doing.

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Reinventing Innovation to Capture the Internet of Everything Opportunity

The Internet of Everything (IoE) is not only disrupting traditional business models, it is also disrupting innovation itself.

While the focus at this week’s 2nd annual Internet of Things World Forum (IOTWF) here in Chicago is on capturing the accelerated opportunity of connected things, we believe there is even greater opportunity with the Internet of Everything: the networked connection of people, processes, data AND things. IoE is already transforming business outcomes, but in order to capture the full potential of its $19 trillion economic opportunity we will need to cultivate new skill sets and ways of thinking by both established organizations and 21st century entrepreneurs.

Innovating with local communities

This, in turn, requires new types of collaborations and investment mechanisms among industry, government and academia to incubate innovative ideas and turn them into commercial, scalable solutions for the betterment of society.

I am very proud of one such exemplary collaboration between the Cisco Entrepreneurs in Residence (Cisco EIR) program, led by Mala Anand, SVP of Services Platforms (“Open innovation: Harnessing the ideas, talent and passion of the startup eco-system”), and the Chicago Innovation Exchange (CIE), a startup incubator affiliated with the University of Chicago, Argonne National Laboratory and other leading technology organizations in the greater Chicago area. This partnership, announced last April, aims to support the most promising early-stage startups in the region that are focused on game-changing IoE and Smart Cities solutions by bringing the expertise and resources of Cisco and CIE in a co-incubation environment.

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The Internet of…Outcomes?

At Cisco, as you might imagine, we talk a lot about the Internet of Things, and now about the Internet of Everything (IoE).  You can find some great videos and background about IoE here, here and here.   As technology continues to transform our world – from how businesses operate to how we connect with each other to how we control features in our homes – the paradigm is shifting.  And it’s creating exciting opportunities for companies that are prepared to capitalize on them.

It used to be that technology was itself an outcome – people wanted an application or they wanted a robot programmed to do certain things.  It was viewed simply as a tool, and one that was often operated in a siloed business unit within a company.  That world, at least for companies who want to stay competitive and maximize potential, is no more.

Technology is no longer just a tool.  It’s no longer a means-to-an-end nor is it a strategy that operates in isolation.  As our CEO John Chambers recently predicted, “every company is going to be a technology company” (a prediction that you’ll also find echoed in many leading business journals).  To respond to consumer demands and consumption models, we all must embrace technology and harness its potential to transform businesses.

S Hogan Biz Outcome

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Fast IT Top Insights Part 2: Accelerating Innovation through Analytics, Security, and Savings

In our previous blog, we began our exploration of how Fast IT will transform the role of the IT organization — enabling it to drive innovation in unprecedented ways for the business. And to do so amid the rapid disruption of the Internet of Everything (IoE) economy.

Specifically, we examined the role of Fast IT in simplifying complex, cumbersome infrastructure. And how this added agility will open the door to faster provisioning of enterprise apps; a new dimension in value derived from cloud; and a true place for IT as a service orchestrator and trusted partner for the business.

But Fast IT transformation extends further still, enabling expansive and dynamic new capabilities through analytics and security; driving the cultural change that must accompany infrastructure change; and liberating the IT organization through dividends in cost and time savings.

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Cisco’s Software Journey

Last week I attended the Gartner Symposium/ITxpo in Orlando, where the theme of the event was “Driving Digital Business.” One of the key themes was the Internet of Everything (IoE) as well as some of the key enabling trends like mobility, cloud, big data, and analytics. A lot of attention was focused on  the changing role of the CIO and how in this new generation of IT, CIOs need to become better equipped to help drive the digitization of the business. In particular, there was discussion around the importance of the user experience, whether customer or employee, and the emergence of “Chief Digital Officers” to oversee the full range of digital strategies to transform businesses as their products evolve digitally.

It’s clear that cloud, mobility, IoE, and big data analytics are fundamentally changing the business landscape in which we operate today. They are leveling the playing field and triggering business outcome-based innovation and investment in IT.  And software-driven solutions are key to driving innovation in any organization.

This is precisely why I joined Cisco just over a year ago: to develop Cisco’s software strategy and accelerate growth of our software businesses. Cisco is positioned to have a massive impact in this market, and I’m excited to play a role in addressing some of the challenges in this space through software – whether that’s in collaboration, across our traditional core businesses in network infrastructure, data center, or mobility.

Today, Cisco’s software journey is well under way. Based on revenues from our software products and services, we already rank as the 5th largest software company in the world. We’ve grown from the 7th largest enterprise SaaS vendor in 2012 to now the 3rd largest SaaS vendor by revenue in 2014.  Nine out of 10 of our most recent acquisitions have been companies driven by software.

What does this mean for our customers? It means they can rely on Cisco to innovate faster, provide richer employee and customer experiences, connect the unconnected, and use big data analytics to gain new insights.

In the coming weeks, you’ll hear more from me and my team about how we’re helping to accelerate and bring about this software transformation at Cisco across our entire portfolio of products and services. You’ll hear how we’re radically changing the way our customers and partners consume, manage, and use our software products and how we’re bringing more application-centric and cloud-ready infrastructure to market.

What do you think about software at Cisco? Let me know in the comments below.

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