Cisco Innovation
Day
Powering The Next
Internet of Everything
Internet
How the Network can
Transform the World
Nuno Ferraz de Carvalho
© 2013 Cisco Systems, Inc. All rights reserved.
Cisco Confidential
1
We continue to see around corners…
Market Transitions
INNOVATION
Customer Driven
…and shape markets
© 2013 Cisco Systems, Inc. All rights reserved.
Cisco Confidential
2
Trends reshaping the global landscape
Social
Demographic Shifts
Economy
Aging
Shrinking
Hypergrowth
Urbanization
Technology Shifts
Scaling Services
Cost Control
© 2013 Cisco Systems, Inc. All rights reserved.
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Computing Costs
Decline,
Mobile & Cloud
Solutions
3
Biggest Economic
social shiftand
in history
Social Shifts in History
Shrinking
Aging
Elderly
(65+ yrs.)
World
Portugal
9.53
(9%)
Europe
691.0
(5%)
S. Korea
44.0
(5%)
Slovakia
4.9
(9%)
25.6%
Hungary
8.9
(13%)
26.0%
27.4%
29.9%
32.6%
32.5%
33.3%
34.2%
37.8%
Germany
70.5
(14%)
Poland
32.0
(17%)
Japan
101.6
(20%)
Russia
116.0
(21%)
Romania
17.2
(22%)
Ukraine
35.0
(28%)
Bulgaria
5.3
(33%)
2050
6.8%
16.2%
12.4%
6.8%
17.2%
12.6%
21.6%
23.3%
24.1%
25.5%
Netherlands 13.6%
Switzerland
Europe
Poland
Singapore
Germany
Italy
S. Korea
Japan
15.4%
14.8%
12.2%
7.2%
16.4%
18.4%
7.3%
17.2%
% Decline
2050
Estimate
World
Brazil
Indonesia
India
Egypt
Philippines
2000
USA
China
Sweden
Canada
2050
Estimate
Hypergrowth
Millions from 2000
© 2013 Cisco Systems, Inc. All rights reserved.
% Growth
Millions from 2000
9,149.9
222.8
293.4
1,613.8
129.5
146.1
50%
28%
37%
55%
85%
88%
Saudi Arabia
43.6
110%
Pakistan
Nigeria
Iraq
Ethiopia
Congo
Yemen
Afghanistan
Niger
335.1
289.0
63.9
173.8
147.5
53.6
73.9
58.2
126%
132%
160%
165%
190%
195%
260%
428%
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4
Massive economic rebalancing
The World’s Top 10 Economies
1999
1820
China
India
France
U.K.
Prussia
Japan
Austria
Spain
U.S.
Russia
28.7%
16.0%
5.4%
5.2%
4.9%
3.1%
1.9%
1.9%
1.8%
1.7%
U.S.
Japan
Germany
U.K.
France
Italy
China
Spain
Canada
Mexico
2010
30.0%
14.5%
6.6%
4.7%
4.7%
3.8%
3.8%
2.0%
2.1%
1.6%
U.S.
Japan
China
Germany
France
U.K.
Italy
Brazil
Spain
Canada
2050
24.3%
8.7%
8.6%
5.7%
4.6%
3.7%
3.6%
2.7%
2.5%
2.3%
China
U.S.
India
Brazil
Mexico
Russia
Indonesia
Japan
U.K.
Germany
32.7%
17.8%
17.4%
5.3%
4.3%
4.0%
3.2%
3.1%
2.4%
2.3%
Source: World Bank/Angus Maddison. The World Economy: Historical Statistics; World Bank; IMF
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5
The Main Challenges
New Value Creation
/ Productivity
Improvements
Talent Mismatch /
Supply & Demand
Energy Mgmt /
Urbanization
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Access to
Healthcare &
Education
6
What are the Challenges We Need to Address?
Emerging Countries
Developed World
India: Shortage of 1M nurses, 600K doctors today.
3B people will be connected worldwide
US: 2M+ home-care workers needed by 2020.
Shortage of 200K nurses, 130K doctors
700M people will be urbanized.
100 new cities with 1M+ people
Stimulus packages for revitalization of 100+ cities
China: Shortage of 23M college educated workers.
58M surplus low skill workers in emerging markets
Developed economies: Shortage of 18M college educated
workers in 2020. Surplus of 35M workers without college
education
Employers: 67% in India / 57% in Brazil have trouble finding
manufacturing talent.
10M manufacturing jobs unfulfilled globally
Europe : 400K manufacturing jobs unfulfilled. 52% of
US employers / 80% of Japan employers have trouble
finding manufacturing talent
IoT productivity gains would increase GDP in APAC by
$4.2T, LATAM by $0.9T in 2030
US: IoT driven productivity increase of 2.6% would
deliver a gain of 25% of today’s per capita GDP by
2030
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7
Internet of Everything enables new business models
Smart Grid
Energy
21st Century
Education
Virtual
Healthcare
eRetail
Education
Healthcare
Retail
eGovernment
Smart +
Connected
Communities
Government
Cities
NETWORK PLATFORM
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8
Cities and the World will run on networked
information
Factory
Optimization
Municipal Command
& Control Center
Cloud &
Services
Smart
Grid
Logistics
Optimization
Traffic
Flow
Home
Energy Optimization
Mgmnt
Hospital
Optimization
Responsive
Store
Comms
Network
Optimization
INTELLIGENT
FACTORY
INTELLIGENT
CITY
Intelligent
Medical
Devices
INTELLIGENT
HOSPITAL
Connected
Ambulances
INTELLIGENT
HIGHWAY
Automated
Intelligent Digital Car System
Signage
Traffic
Cameras
Source: Intel
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9
However we’ve only just begun…The only constant
is change
Solve Environmental Challenges
Thrive in Smart Communities
Live Enriched, Healthier Lives
Redefine Work Models
Focus on Improved Safety
Achieve Energy Efficiency
…to change the way the world works, lives, plays, and
learns