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Creating and Capturing Value To Thrive in a Digital World

By 2020, 75% of business will become digital in some way by deploying solutions that leverage the intersection of people, process, data, and things—the very definition of the Internet of Everything (IoE). For example, IoE will drive an improvement of earnings before taxes and interest (EBIT) of 15.6% in retail, 14.5% in financial services, and 12.8% in manufacturing.

Connected Devices and Sensors Everywhere

The rapid adoption of IoE and the Internet of Things (IoT) has driven the number of connected devices into the billions worldwide. Cisco’s own estimate shows there are 25 billion connected devices today, and will be 50 billion by 2020.

While sheer the number of devices grabs the headlines, there is an even more powerful force at work that will add to the tremendous disruption CIOs and senior IT executives are experiencing across all industries. (For more about this disruption, please refer to my blog titled, The Digital Vortex: Relentless, Disruptive, Chaotic — and Empowering.)

The enduring impact of Moore’s Law and Metcalfe’s Law combined with unprecedented innovation is resulting in sensors that are changing the world to become hyper-aware, hyper-predictive, and hyper-agile. Cisco estimates that 54 billion sensors will be shipped this year.

Leading companies are using these new capabilities to do things like monitor and expedite the time it takes prepare planes for boarding, reduce customer wait times by predicting 40 minutes in advance when lines will become too long, increase factory production rates by ensuring workers always have the right tools at hand, and anticipate structural failures to save lives and reduce costs.

New Business Models and Value Creation

In this new environment, three digital business models are pointing the way forward: 1) Frictionless Life, 2) Hyper-Relevance, and 3) Community. Each model delivers a different type of value.

JBGartnerITExpoBlogPic Read More »

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Observations from Mobile World Congress 2015

I have just returned from a very interesting and jammed-packed week at Mobile World Congress 2015 in Barcelona. A record 93,000 plus people are estimated to have attended this year’s premier technology festival. Much has changed in the industry over the last year since I reported my observations of MWC 2014. However, what is most remarkable is how the boundaries of mobility continue to expand and morph – everything now seems to be mobile? As such, the show offers a fascinating glimpse into the future of technology and the major social and business shifts that we can expect in the next few years.

MWC_Barcelona

The following are my personal observations and extrapolations from the show Read More »

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SUMMARY: Moving to the Cloud

Stay tuned for the next installments of our Moving to the Cloud series.

In the meantime, please add your comments or questions to the previous posts:

Seven Ways to Move to the Cloud

Seven Software Business Models – Part 1

Seven Software Business Models – Part 2

 

 

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Seven Software Business Models – Part 2

Many years ago I found myself talking to venture capitalists about the differences between SaaS, outsourcing, ASPs, MSPs, online applications; etc. Also I noticed that my Stanford students had little understanding of the economics of software, so I developed the idea of seven business models to cover everything in the software business, and remove the buzzwords and replace them with economic models.

In my previous blog post we discussed the first four models, this post will cover Models Five through Seven.

Seven Software Business Models

We ended the last blog talking about Model Four being able to provide management of the security, availability, performance and change of the software at nearly 10x less cost.

The question we left with was “how”?

How is it possible to decrease the cost of management without just paying people a fraction of what they made previously?

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Seven Software Business Models – Part 1

Many years ago I found myself talking to a venture capitalist about the differences between SaaS, outsourcing, ASPs, MSPs, online applications; etc. Also I noticed that my Stanford students had little understanding of the economics of software, so I developed the idea of seven business models to cover everything in the software business, remove the buzzwords and replace them with economic models.

In my previous post, I talked about the Seven Ways to Move to the Cloud. In the second issue (there’s a lot here), I’ll break this into two separate posts, discussing models one through four here, and models five through seven in the next issue publishing on Monday, March 2.

CLOUD 7 business models

Note the dollar numbers used throughout are intended to be relatively representative.

Read More »

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