Mobile Future Webinar:

The Internet’s Third Act: The

Connected Device Decade Wednesday, April 4 at 1 PM (ET)

#m2mwebinar

Presenters Jonathan Spalter, Chairman, Mobile Future Jim Kohlenberger, President, JK Strategies

Mahbubul Alam, Cisco Systems

The Internet’s Third Act: The Connected Device Decade

From Smart Phones to Smarter Everything:

How the next wave of connected devices will further accelerate mobile opportunity,

and further exacerbate the looming spectrum crunch.

Agenda • The promising and extensive opportunities in

the digital device decade - in every sector

• The technologies that are driving the connected device revolution

• The policy choices for enabling a brighter future beginning with making more spectrum available

• The five key steps for harnessing connected devices for societal gains

What is Machine to Machine Communication?

Anything that can benefit from connectivity,

will be connected to the Internet

PLACES ~0.5 Billion

PEOPLE 5.0 Billion

DEVICES 50 Billion

The Wired Revolution:

Connecting Places

The Mobile Revolution:

Connecting People

The Device Revolution:

Connecting Things

Inflection

points

1875 1900 1925 1950 1975 2000 2025

Source: Ericsson

Advancing Enormous Societal Gains

• Reducing carbon emissions

• Reducing crime

• Cutting traffic jams

• Cutting fuel consumption

• Reducing accidents

• Cutting traffic fatalities

• Creating new jobs and industries for the future

The Intelligent Traffic Management system in New York City utilizes wireless technology to relieve congestion and route traffic around unexpected events in real time.

Smarter Transportation

• The typical U.S. traffic signaling system is 30 to 40 years old.

• Fully utilizing smart traffic technology could cut fuel consumption on urban roadways by as much as 20 percent.

• Reducing accidents, saving lives.

Smarter Cars

Augmented and Autonomous Driving

Smarter Transportation Tracking

Connecting Buses and Trains to Apps

Thinking “inside the box” to track FedEx packages

Making parking easier

Smarter Energy, A Better Environment • The number of M2M connections in the utilities industry is

projected to grow from 100 million in 2010 to 1.5 billion by 2020, of which 99% will be smart meters.

• Wireless smart grids could eliminate 360 million metric tons of CO2 – the equivalent to the annual energy use of 30 million U.S. homes.

Smart Meters Endangered Species tracking Animal Cams Enviro sensing

Smarter Agriculture Using sensors to improve and expand application of precision agriculture could reduce water use by 11 to 50 percent.

Moisture Meters

Precision Farming

Weather sensing

Connected Farm Equipment

Smarter Payments

ATMs – early M2M example

Vending Machines – order when they are

Connected payments

Smarter Businesses

• When machines talk, businesses listen

• Improving factory agility, intelligence, efficiency and control

• Remotely controlling machines

• Alerts on equipment performance before it fails

• Navigate warehouses and inventory control

Smarter Buildings

Smarter Homes • By 2014, 70% of all consumer electronic devices are

expected to be connected to the Internet

• Home automation system to increase from 1.8

million to 12 million systems a year within 5 years

• By 2020 there are projected to be almost half a billion connected devices in the security sector alone

Smarter Security

Security Monitoring Traffic cameras Video feeds Home sentries

Smarter Cities

By increasing the technology embedded in city processes and infrastructure, IDC estimates that it’s not impossible to see:

• Reduction in carbon emissions of: 25%

• Energy savings of: 50%

• Reduction in crime rates by: 20%

• Reduction in traffic jams of: 20%

Smarter Health Care

Digital Band-Aids

Smart Pill Bottle Caps

Digital Cardiac Monitors

Asthma inhalers

'Electronic Skin' Patches Monitor Health Wirelessly

Emergency locator devices for Alzheimer’s patients or special needs kids

Fabric based-biosensors can monitor infant vital signs

Camera GPS, and cell transmitter for firefighters

Connected Body Monitors

Smarter Students -- Lyndon Baty Goes to School

Driven by key technological advances: • Moore’s Law -- making faster, smaller, smarter, and more

capable devices possible every 18 months.

• Thin film technologies – soon turning almost any surface into a connected touchscreen display, and enable affordable intelligence to be implanted into almost anything.

• Near Field Communication (NFC) -- enabling new forms of mobile commerce.

• Better human computer interaction -- unlocking new applications.

• DIY connected device applications -- enabling innovation as dynamic as today’s apps economy.

• Next generation wireless networks – enabling connections that go faster and farther.

Key technological advances (cont’d) • Higher resolution sensors -- enabling us to connect

to our world in ways beyond just our six senses.

• Vast video networks -- improving safety, security, and the environment .

– Remote security cameras, nanny-cams, public transportation cameras, ambulance feeds, police car monitoring, and environmental sensors.

– A half hour of this video can generate 3.6 GB of data.

– Video traffic already accounts for more than 50% of total mobile data traffic, will more than double every year between 2010 and 2015, and will constitute two-thirds of mobile data traffic by 2015.

0%

50%

100%

150%

200%

250%

300%

33%

101%

144%

216%

258%

Pe

rcen

t C

AG

R T

raff

ic G

row

th R

ate

Source:

This coming digital device deluge will further accelerate mobile opportunity,

and exacerbate the looming spectrum crunch

0.0

50.0

100.0

150.0

200.0

250.0

300.0

2010 2011 2012 2013 2014 2015

7.4 PB

296 PB

Pet

abyt

es

pe

r M

on

th

Source: Cisco VNI Mobile 2011

109% Compound Annual Growth Rate 2010-2015

Five Pragmatic policy steps for keeping the innovation pipeline running:

1. making more spectrum available for mobile;

2. increasing investments in targeted research to stoke innovation;

3. advancing enlightened Internet policy;

4. protecting privacy and security;

5. and ensuring the next generation of scientists, engineers and developers are being trained.

Five Key Steps For Advancing Broader Societal Gains:

1. Catalyze Innovation Through 4G Rollouts

2. Accelerate Smart infrastructure Development and Deployment

3. Advance a Smarter Electric Grid

4. Speed Up Access to Wireless Connected Medical Devices.

5. Enable More Of These Connected Devices to be Made In America

Summary

Nowhere is the opportunity so vast,

the need so urgent,

and the policy so vital

for advancing a brighter mobile future.

Internet-of-Things (IoTs) “Rise of the Machines”

Mahbubul Alam maalam@cisco.com

Connected Industries Business Unit Cisco Systems Inc.

The Evolution of IP Networks

1985 2020+

Million

Billion

Trillion

The Third Great Era: Trillions of Connected Devices by 2020+

1%

5%

2%

3%

4%

1997 2007 2005 2003 2001 1999

Pro

du

ctivity

Business

Phase 1

Consumer

Phase 2

The Network as the

Platform

Collaboration

Video

Virtualization/ Data Center

The Industrialization of the Internet… Internet of Things

2011 2013 2009

1%

5%

2%

3%

4%

1997 2007 2005 2003 2001 1999

Pro

du

ctivity

Business

Phase 1

Consumer

Phase 2

The Network as the

Platform

Collaboration

Video

Virtualization/ Data Center

Industrial

Phase 3

Internet of Things

The Industrialization of the Internet… Internet of Things

The Platform needs to be

more than the Network !

Enable New Knowledge

Industrial Automation

Improve Productivity

Food & H20 Quality

Energy Saving (I2E)

Predictive maintenance

Enhance Safety &

Security

Health

Smart Home

Healthcare

Defense

Transportation and

Connected Vehicles

Intelligent Buildings

Smart Grid

A Broad Set of Applications

The IoTs Hierarchical Architecture

Core IP/MPLS, Security,

QoS, Multicast

Multi-Service

Edge 3G/4G/LTE/WiFi

Embedded

Systems and

Sensors Low power &

bandwidth, smart

things

Thousands

Dozens of Thousands

Millions

Data Center Hosting IoT analytics

Field Area Network

Smart Things Network

IP/MPLS Core

Energy Smart Cites Connected

Cars

Network Management

… …

…

…

…

…

Control Sensing

Correlation

…

Distributed Intelligence: FOG

Computing

IoTs

In

no

va

tio

n

IoTs

Acc

ess

Net

wo

rk

Ligh

twei

ght

IP +

OS

Zero

To

uch

Pro

v.

Ru

gged

ized

Pla

tfo

rm

Ho

sted

Ap

p.

Dis

trib

ute

d In

tel.

IoTs

N

MS

Ap

ps

Applications

………

Edge Stack, Routing

Rich (Mobile) Client

Edge Routing, Wireless/Mobile AP, Fog

Computing/Storage, Industrial Ethernet

Mobility and Infrastructure Routing,

Distributed Data Center/Fog Service Delivery Support

Data Center Computing, Storage, Networking

Cloud Computing Services/Apps Delivery Support

Cisco’s Apps

Healthcare

Key Takeaways

• Need governance around info collected, who and how it will be used

1) Policy to Protect Virtual Profile

• Will drive competition, cost down and faster adoption

2) Drive M2M/IoTs Standard

• For industries to blossom and thrive

3) Need Additional Spectrum

Start now and start thinking ….

Technology

Societal Impact

Policy

1 Trillion Connected Devices

• For additional questions

• Email: maalam@cisco.com

Thank you

• Look out for blogs from May 2012

• http://www.myconnectedsociety.com

My Blogs

#m2mwebinar

Thank you!