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The Internet of Everything: BIG. Different. Now. Chris White SVP, IoT/IoE Global Sales

Great IoE Opportunity Among Top LATAM Brands

The Internet of Everything

…and ACCELERATING! is BIG

Total Value

Growing

Market Sectors

2012 2013 2014 Dec Jan Feb Oct Jan Feb Mar Oct

Cisco’s 1st IoE PoV

1st IoTWF Barcelona 832 participants

Cisco Releases $4.6T Value at Stake for Public Sector

45K media articles YTD (12x spike from 2012)

1500 attend 2nd IoTWF in Chicago

Cisco’s $14.4T Value at Stake for Private Sector

Cisco Announces IOx

Industrial Internet Consortium formed

23B sensors shipped YTD (6x jump from 2012)

IoE Acceleration Gartner Introduces IoE

John Chambers Delivers IoT Keynote at CES

IoE #3 in Gartner’s Top Technology Trends for 2014

“IoT could be the next industrial revolution”

“IoE is the next big thing for tech”

Cisco Introduces IoE at Partner Summit

“IoE can make Cisco the #1 IT vendor”

original

189 IoT start-ups YTD (4x increase from 2012)

$226B $163B $38B $15B

Total LATAM IoE Market Value Is $870B

$58B

A Closer Look at Top LATAM IoE Verticals

Financial Services

Transportation

Energy

Public Sector

Manufacturing

The Internet of Everything

is DIFFEЯENT Go to Market Partnerships Data and Analytics Role of IT

2014 Internet of Things World Forum Highlights

§  1601 attendees (2X increase)

§  Industry and customer keynotes

§  29 event sponsors (81% increase)

§  21 Startup Showcase sponsors/exhibitors

§  140 unique articles in top-tier global publications

§  Chicago walking tour

§  Next year’s venue: Dubai

§  Internet of Things Reference Model

From basic connectivity...

…to a critical part of the enterprise infrastructure

What Will It Take to Converge Operational Technology and Information Technology?

…to open standards

From proprietary standards...

…to converged, secure, managed, and

collaborative operations

From disparate IT and OT networks…

IT/OT Convergence set up slide or the next

one?

Internet of Everything Requires IT and OT Convergence

Disparate Ecosystems Disconnected, legacy

systems Big, siloed Data Proliferation of devices

Rich and engaging experiences

Business Process Agility Business Insights Business Continuity

DISTRIBUTED INTELLIGENCE SECURITY RESILIENCE AT

SCALE CONVERGED,

MANAGED NETWORK APPLICATION ENABLEMENT

Today

IT/OT Convergence

IoE Digital Business

IT/OT Convergence set up slide or the

previous one?

Internet of Things Reference Model

Application (Reporting, Analytics, Control)

Data Abstraction (Aggregation and Access)

Data Accumulation (Storage)

Edge Computing (Data Element Analysis and Transformation)

Connectivity (Communication and Processing Units)

Physical Devices and Controllers (The “Things” in IoT)

Collaboration and Processes (Involving People and Business Processes)

1

2

3

4

5

6

7

IT

OT

Query Based

Event Based

Data at Rest

Data in Motion

Non-Real Time

Real Time

Technology Drivers •  Asset modernization •  Cloud-based technology •  Pervasive multi-service networks

Business Drivers •  Business automation •  Customer experience •  Accelerating innovation

Big Data - The New Norm

Big Data Doubling Every 2 Years

•  90% of world’s data created in last 2 years

•  More new data generated in 2012 than prior 5,000 years

•  Nearly 40% say data will be processed at the network edge

Wisdom (Scenario Planning) 4

Knowledge 3

Information 2

Data 1

IoE: Connecting Data with Business Outcomes

Big Data and Analytics Analytics | Knowledge Cloud Fog

Distributed Compute Data in Motion Analytics

Connecting Assets Sensing | Control | Raw Data

Wheelchair Lamp Post Jet Engine Automation

Business Outcomes Process | People | Wisdom Improve

Experiences Increase

Efficiencies New Business

Models Minimize

Risk

§  25-50% reduction in average checkout wait time

§  Improvement in queue length SLAs

§  Accurate shelf stock out predictions for 3 products (pilot scope)

§  Staff optimization – generate true picks, avoid false picks

IoE Improves Shopper Experience and Staff Utilization in Big Box Retail

§  Very Light Train (VLT) system utilization improved by 15%

§  Reduced ticket fraud by 40% for US$4M annual savings

§  Location-based services projected to generate US$3M yearly advertising revenue

IoE Delivers Robust Infrastructure and Platform for All City Services in Cuiaba, Brazil

§  Manage 12,000 ships, 83 railroads, 1800 workers, thousands of vehicles

§  Reduced congestion by 15%

§  Doubling throughput in next 10 years

§  75% Opex savings

§  Reduced servers from 242 to 48 for 20% reduction in capital costs

IoE Reduces Congestion and Improves Citizen Security in Hamburg, Germany

Partnering for New Industry Solutions

Toronto Berlin London

Rio

Barcelona Songdo

IoE Innovation Centers

Customers and solutions

IoE Investment Fund

Entrepreneurs and start-ups

IoE Applications

Developers and communities

IoE Partners

Partnering for industry solutions

The Internet of Everything

is NOW Value IoE Journey Your Opportunity

IoE Enables… All IT Market Transitions

Big Data and Analytics

Social Collaboration

Security

Internet of Things

Mobility

Cloud

How Companies Are Capturing Their Portion of the $19T

4X $40M 30% 21%

Increased Production

Scrap Avoidance

Less Traffic Congestion

Lower Capital Costs

Barcelona

IoE Journey to Value

• Sensors • Gateways •  Infrastructure

Connectivity and Compute

Standardization on Ethernet and IP

• Streamlined operations

• Remote control • Visibility and

security

Fast IT

IT/OT Convergence

• Edgeware • Data in motion • Business insights

Data and Analytics

Connecting Data with Decisions

• Platform for innovation

• Business process agility

• Connected and integrated interactions

• ROI of $19T

Internet of Everything

Business Transformation

Bus

ines

s Im

pact

Level of Adoption

Partnering to Accelerate the Opportunity

IE 2000 IE2000 IP67 IE 3000 IE 3010 CGS 2500

5915 + 5921 + 5940 Rugged Embedded Services Routers

ESS2020

Rugged Switch

Video Surveillance Manager and

IP Cameras

Switching Routing Embedded CGR 1000

Wireless Video Surveillance

819H M2M ISR

Gateway Router 1552 Rugged Wireless

CGR 2000

ASR 903

IPICS Physical Access Manager

Hardware Products

Support Services M

anaged Services Pr

ofes

sion

al S

ervi

ces

Consulting Services

IoE Software Suite

Data Virtualization (Composite) Connected Analytics Prime Analytics

Data and Analytics

ServiceGrid (SolveDirect) Integration Platform Services Exchange Platform

Process Automation and App Integration API

Manufacturing Energy Government Financial Services Health Care Education Transportation Retail

Vertical Solutions

Enterprise Mobility Solutions Platform Remote Expert Platform Interactive Services Platform IP Interoperability and Collaboration System

Experiences and Engagement

IoE Economic Value

(10-year NPV)

How IoE Can Accelerate Mexico’s Transformation Journey

Economy: growth and jobs creation

National security: reduce violence

Telecom reform: competition, universal broadband access, and national connectivity

Smart Cities

Smart Manufacturing

Smart Border

National infrastructure development

Country Digitalization

Energy reform: Reduce government budget dependence in oil revenues

Alignment to Government Agenda

$75B

$80B

$25B (WIP)

$200B Total Mexico

“We want to realize the dream of transforming Mexico” John Chambers. Davos, Jan. 24, 2014

What Is Your Portion of the $19T?

Asset Utilization

Employee Productivity

Supply Chain Logistics/Efficiency

Improved Customer Experience

Energy Savings

Safety Improvements

Innovation