Potential for $14.4 Trillion Profit in Internet of Everything, says Cisco
Potential for $14.4 Trillion Profit in Internet of Everything, says Cisco by UCStrategies Staff
The Internet of Everything is a huge opportunity for both Cisco and its partners, and the company is keen to become more involved in this movement.
John Chambers, the CEO of Cisco, notes that the Internet of Everything, which is the growing ability for people, data and everyday “things” to communicate with one another through the internet, is essentially a $14.4 trillion market.
Chambers said: “Three to five years out, our major move will be to become the No. 1 IT player together, and we will do this with partners and in conjunction. To do that, we believe the major transitions will be around the Internet of Things. And we will spend a fair amount of time on how we challenge each other and look at that. But, it literally, in our opinion - and I think this number will end up being very conservative - is a $14.4 trillion profit market for our joint customers over the next decade.”
According to Chambers, the Internet of Everything is the fourth major evolution of the internet, and will impact the networking industry more than the three previous phases combined. For Cisco, the first phase of the internet was connectivity (through Web browsers, email and search). E-commerce applications marked the second “networked economy” phase, and social media, mobility, video and cloud are “immersive experiences” which represent the third phase.
The Internet of Everything as the fourth phase will push connections between people, devices and everyday objects, and Cisco estimates that by 2020, nearly 50 billion connections will be active. In terms of comparison, there were around one million Internet-enable connections in 1994.
Around 45 percent of those connections will be machine-to-machine, or connections which occur between objects that do not need human intervention, said Chambers. He commented: “It's going to require much more effective teamwork and cultural changes than many of us realize. In fact, the easiest part might be the technology.”
New Catalyst switches and service routers have been released by Cisco, and these are optimized for the Internet of Everything as well as the new generation of applications which are set to increase with the trend.
Furthermore, Cisco has said that the Internet of Everything will represent a new opportunity for Cisco and its partners to provide industry-specific services, particularly as verticals like finance and healthcare start to make the most of the technology. (CY) Link