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In Retail, Insight Is Currency, and Context Is King

Today’s retailers face a rising tide of change, disruption, and challenges, all driven by technology. As their business landscape is upended, many are struggling to adapt to changing consumer behaviors, competition from disruptive innovators, and exponentially increasing complexity.

The source of much of this disruption is the Internet of Everything (IoE). IoE is the networked connection of people, process, data, and things, and Cisco projects these connections to surge from 13 billion today to 50 billion in the next decade. For retailers, that means a sharp increase in the potential channels, devices, and shopping journeys that are available to consumers. Increasingly, retailers must meet new demands for relevant, efficient, and convenient shopping experiences, whether in-store or out.

IoE_Retail_Figure_Journey_3-2

But for traditional retailers, IoE also presents tremendous opportunities. At the National Retail Federation’s “Big Show” in New York this week, I have seen a great openness to change and innovation. As I see it, traditional retailers are ready to step into the IoE era, but they will need the right ecosystem of partners to guide them through the transformation and help them make the right investments.

To better understand these opportunities and the changing competitive dynamics in retail, Cisco recently undertook a comprehensive, three-pronged study consisting of original research, economic analysis, and interviews with retail industry thought leaders. Released this week, the first wave of primary research findings includes 1240 consumer responses from the United States and the United Kingdom.

A key theme that emerged from the research was that today’s consumers demand new kinds of digital experiences, both in-store and out. In our survey, we presented respondents with 19 concept tests — everything from digital signage and same-day delivery to mobile payments and augmented reality. Above all, we found that shoppers seek a hyper-relevant experience — more so than a hyper-personalized one. In short, efficiency and savings are more important to them than personal engagement.

In our survey, 38 percent of respondents identified greater efficiency in the shopping process (e.g., ensuring items are in stock, speeding checkout times) as the area retailers most need to improve. By contrast, 13 percent sought improvements that would lead to a more personalized shopping experience. Read More »

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How Trinity Leeds is changing the future of retail with IoE

Shopping centres have been around for thousands of years, supposedly starting in Ancient Rome. The basic concept of a shopping centre has not changed much since then; a large building, or multiple buildings connected, which contain a variety of retail stores, services and restaurants. However, we at Land Securities, a commercial property group based in the UK, are changing the way customers experience shopping with our newest shopping centre, Trinity Leeds, “the mall of the future.” Read More »

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What’s In Store for Satellite Video Purveyors at CES?

Amid the technological sizzle at this week’s Consumer Electronics Show is a special line of equipment and services, developed entirely for satellite video providers. And, as you might expect, it’s a solution set being heavily fortified by the cloud.

That’s why a strong undercurrent this week in Las Vegas (and in our suite, at the Wynn), are the innovations that can infuse satellite video providers with agility. Innovations in content, user experience, and services, specifically.

In our suite, at the Wynn, we’ll have on hand everything Read More »

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A Grammy-Class Outcome to the Rockstar Patents

Today’s definitive agreement for purchase of the Rockstar patents by a subsidiary of patent clearinghouse RPX Corporation, with simultaneous licensing of the portfolio to more than 30 technology companies, including Cisco, represents a victory for common sense. It also puts to rest a wayward and misguided business model that threatened to add costs to industry and consumers with no benefits to innovation or economic development.  This step should also send a strong message to companies who toy with the idea of “monetizing” their patent portfolios through transactions with private equity and non-practicing-entities, or by shaking down other industry participants: They will find themselves isolated. In short, they will end up as net losers if they initiate a game based on short-sighted greed.

We’re taking a different approach. Working with RPX, we devised a licensing model where even those who chose not to join with more than thirty of their peers in this purchase will still have the chance to license on comparable and fair terms.  Kent Walker, the general counsel of Google, was instrumental in pulling this together. Brad Smith and Bruce Sewell, the general counsels of Microsoft and Apple, deserve huge credit for working with the other Rockstar members – Blackberry, Ericsson and Sony – to reach a consensus that produced this positive result.

The origins of “Rockstar” are found in the smartphone patent wars that began several years ago. While we have no quarrel with companies using their patents to stop the copying of differentiating features without permission (and in fact commented favorably on the direct Apple-Samsung litigation), the driving up of patent valuations as each side in the war sought to bulk up for battle ended up serving no one other than lawyers and middlemen. Rockstar’s litigation strategy turned out to be inconclusive, keeping many lawyers very busy but with little money changing hands to date.

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Protecting Innovation

In the thirteen years I’ve been General Counsel of Cisco, I can count on one hand the number of times we’ve initiated suit against a competitor, supplier or customer.

It’s therefore only after thoughtful and serious consideration that we are today filing two lawsuits to stop Arista’s repeated and pervasive copying of key inventions in Cisco products. These suits cover key Cisco proprietary patented features and Cisco’s copyrighted materials.

(The patent lawsuit can be viewed here. The copyright lawsuit can be viewed here.)

Cisco’s $6 billion annual R&D expense, supported by over 25,000 engineers, has a proven track record of bringing innovation to our customers and partners around the world. Our success is built on using our innovation engine to lead in the marketplace. Our action today is based on the principle that to compete in technology, you need to innovate, not copy.

We have taken this action only after assuring ourselves of four key facts – all of which form the basis for legitimate intellectual property actions between competitors:

  • Arista incorporates features knowing that Cisco holds intellectual property rights related to those features, all of which are Cisco proprietary and none of which are industry standards
  • Arista intentionally markets those features to its customers as a basis for buying the products
  • Arista promotes its copying to convince investors to finance the company
  • Arista’s actions, if unstopped, will embolden others to seek to do the same

Patented Featured Copied

The heart of our action regards Arista’s deliberate inclusion in its products of 12 discrete and important Cisco features covered by 14 different U.S. patents. All of these features are being used by Cisco currently and in products we ship to our customers. None of the implementations are incorporated in industry standards. They were patented by individuals who worked for Cisco and are now at Arista, or who at Cisco worked with executives who are now at Arista. These Cisco-created features and implementations are incorporated by Arista in their entirety into Arista’s products.

  • System Database (“SysDB”) (Arista uses Cisco’s networking device implementation covered by Cisco Patent No. 7,162,537)
  • Zero-Touch Provisioning (“ZTP”) (Arista uses Cisco’s implementation covered by Cisco Patent No. 7,290,164)
  • On Board Failure Logging (“OBFL”) (Arista uses Cisco’s implementation covered by Cisco Patent No.7,340,597)
  • Control Plane Policing (“CoPP”) (Arista uses Cisco’s implementation covered by Cisco Patent No. 7,224,668)
  • Spanning Tree Loop Guard(Arista uses Cisco’s implementations covered by Cisco Patent Nos. 7,460,492 & 7,061,875 )
  • In-Service System Upgrades (“ISSU”) (Arista uses Cisco’s implementation described by Cisco Patent No. 8,356,296)
  • Virtual Port Channels (“vPC”) (Arista uses Cisco’s implementation covered by Cisco Patent No 8,051,211)
  • Access Control ListsImprovements (“ACL”) (Arista uses Cisco’s implementation covered by Cisco Patent Nos. 7,023,853 & 6,377,577)
  • Private Virtual Local Area Networks (“Private VLANs”) (Arista uses Cisco’s implementation covered by Cisco Patent Nos. 6,741,592 & 7,200,145)
  • Generic Command Interface (Arista uses Cisco’s implementation covered by Cisco Patent No. 7,047,526)
  • CLI Command Data Translation (Arista uses Cisco’s implementation covered by Cisco Patent No. 7,953,886)

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