1Cisco Confidential
Emerging Technologies and Innovation @ Cisco
Gary Coman
Director, Product Management
Cisco, Asia Pacific
2Cisco Confidential
Agenda
• Increasing Role of Technology & Communications
• Cisco’s Internal Innovation Strategy
• Emerging Technologies:
Interoperability Systems
Physical Security
Digital Media Management
TelePresence
• Summary
3Cisco Confidential
Everything Will Be Connected
Source: Forrester Research, February 2005
14 billion devices will be connected to the Internet by 2010
14 Billion
300 Million
2001 2006 2008 2009 201020072002 2003 2004 2005
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DevicesDevices
The World is Changing FastOpportunities Abound
ExperienceExperience
Content/Applications
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Innovation Strategy: Network as a PlatformExtend the Value of the Network
NETWORK PLATFORMNETWORK PLATFORM
VALUE
Standard + Extensible = Value-Creation
Standard + Extensible = Value-Creation
NETWORK PLATFORMNETWORK PLATFORMNETWORK PLATFORMNETWORK PLATFORM
New Systems:•Cisco TelePresence• IPICS•Physical Security•Digital Media
NETWORK PLATFORMNETWORK PLATFORM
MultiProtocolMultiProtocolRoutingRouting
DataData--VoiceVoiceVideoVideo
ContentContentAwareAware
EmergingEmergingTechnologiesTechnologies
App
App
App
App
App
App
App
App
App
App
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Global IP Traffic Growth by Segment
Source: Cisco Estimates, Ovum, Bernstein, Public Company Data
53% CAGRPB / Month
Wireline—Consumer
Wireline—Business
Wireline—Consumer
Cable—Consumer
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
10,000
9,000
8,000
0
7,000
6,000
5,000
4,000
3,000
2,000
1,000
Traffic grows to nearly 9 Exabytes per Month by 2009Traffic grows to nearly 9
Exabytes per Month by 2009
For Perspective:
1 Exabyte = 5 X all the world’s printed matter
5 Exabytes: All words ever spoken
For Perspective:
1 Exabyte = 5 X all the world’s printed matter
5 Exabytes: All words ever spoken
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Network price performance:doubling every 12 months* *Ray Kurzweil, 2005
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1,148
1,288
1,357
1,218
1,000
1,050
1,100
1,150
1,200
1,250
1,300
1,350
1,400
2006 2007 2008 2009
B$
Growth in IT Spending in Worldwide, 2006–2009
Where Does the IT Money Go?
Source: IDC WW Black Book, January 2006
2006 WW IT Spending:
1,148 B$
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Agenda
• Increasing Role of Technology & Communications
• Cisco’s Internal Innovation Strategy
• Emerging Technologies:
Interoperability Systems
Physical Security
Digital Media Management
TelePresence
• Summary
10Cisco Confidential
Cisco Strategy for Growth
11Expand Core Markets
22Grow AT Markets
33Create New Opportunities
11Cisco Confidential
An Extensive Portfolio
The 85% You Don’t See: The Intelligent Information NetworkEnhanced
Power Management
IntelligentLAN Switching
Auto VLAN
Auto QoS
LinkSys
CarrierSoftswitch
Firewall
Host IntrusionProtection
WiFi Networking
Dynamic DeviceDiscovery
IntelligentTraffic Routing
Network AccessControl
Secure VPN Access
Storage
CiscoWorks
SeamlessMobility
Dynamic UserTracking
SRST
Video Association
The 15% You SeeIP TelephonyIP Telephony
Customer ContactCustomer Contact
Unified MessagingUnified MessagingVideoVideo
CollaborationCollaborationMobilityMobility
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Internal Venture,Financial Investment
EMTG: A New Growth ModelNew Products for New Markets—Disruptive Innovation
New
Existing
Existing New
Source: Prof. Ed Roberts, MIT Sloan School
Partner,Acquire
Develop,Acquire
Acquire,Partner
EMTGFocus
Market
Technologies
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Cisco: Innovation for Growth
15%
13%
9.3%
CAGR
$0
$10
$20
$30
$40
$50
$60
$70
’93 ’94 ’95 ’96 ’97 ’98 ’99 ’00 ’01 ’02 ’03 ’04 ’05 '06 '07 '08 '09 '10 '11 '12
Revenue Foundation
ATs ETs
$B
Projected
To achieve 15% CAGR
ETs = $6.5B by FY12
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Internal Venture Math
15 Successful ET’s
$6.5B$6.5B
75%
1,000Prospects
20ET Investments
2%
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Cycle of Innovation
DeployDifferentiation
at Scale
DeployDifferentiation
at Scale
InventDifferentiated
Offering
InventDifferentiated
Offering
ManageMission-criticalProcessesat Scale
ManageMission-criticalProcessesat Scale
ExtractResourcesto Reinvestfor Core
ExtractResourcesto Reinvestfor Core
2. Deploy2. Deploy
1. Invent1. Invent
3. Manage3. Manage
4. Offload / Repurpose4. Offload / Repurpose
AdvancedAdvancedTechnologyTechnology
FoundationFoundationTechnologyTechnology
EmergingEmergingTechnologyTechnology
ReinventReinventTechnologyTechnology
Source: Cisco, TCG Advisors
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INTELLIGENT INFORMATION NETWORKINTELLIGENT INFORMATION NETWORK
Innovation Across all Customer Segments
IP NGNIP NGN
SERVICE PROVIDERSERVICE PROVIDER
The Connected Home
The Connected Home
CONSUMERCONSUMER
Service Oriented Network ArchitectureService Oriented
Network Architecture
ENTERPRISEENTERPRISE
FOUNDATION TECHNOLOGIESFOUNDATION TECHNOLOGIES
EMERGING TECHNOLOGIESEMERGING TECHNOLOGIES
ADVANCED TECHNOLOGIESADVANCED TECHNOLOGIES
COMMERCIALCOMMERCIAL
Smart Business Communications Architecture
Smart Business Communications Architecture
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Invent Like a Startup,Scale Like Cisco
New BU
Invent Build Sell Support
Mfg
Marketing Sales
Services
IntegratedGo-To-Market Approach
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The EMTG Framework for InnovationFind and Filter–Then Initiate ���� Accelerate ���� Eliminate/Graduate
Initiate
BU formed
$1B, 5–7 yrs? Execute Commit
2. Deploy2. Deploy
1. Invent1. Invent
Accelerate
Eliminate
Find
Filter
Graduate
• Academia, Idea shops, Tech Center
• VC Focus
• Apply disruption to others
• Prevent disruption to Cisco
• Resurrect failed attempts
• Exploit macro trends
• Feedback from Partners, Customers
• +1 B$ in 5–7 years?
• Leverage existing Cisco business model?
• Significant pull-through opportunity?
• “Pay as you grow” profile?
• Determine outcome: Test, Initiate, Pass, Seed, Kill?
Crossed the Chasm?
Market Share vs nearest competitor?
$100M–$300M ?
Barriers to entry in place?
Insufficient market?
Product not viable?
Cisco can’t sell?
Losing share?
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The Emerging Technologies
Advanced Technologies
(announced)
Advanced Technologies
(announced)
• Application Networking Services
• Home Networking
• HSBS (Linksys One)
• Digital Video (SA)
• IPC
• Optical
• Security
• Storage
• Wireless
• Application Networking Services
• Home Networking
• HSBS (Linksys One)
• Digital Video (SA)
• IPC
• Optical
• Security
• Storage
• Wireless
Stage 2 Emerging
Technologies(announced)
Stage 2 Emerging
Technologies(announced)
• Communication Interoperability Systems (IPICS)
• Physical Security
• Digital Media Management (DM)
• TelePresence
• Server Networking and Virtualization
• Consumer Electronics
• Intelligent Services Management
• Communication Interoperability Systems (IPICS)
• Physical Security
• Digital Media Management (DM)
• TelePresence
• Server Networking and Virtualization
• Consumer Electronics
• Intelligent Services Management
Stage 1 Emerging
Technologies(unannounced)
Stage 1 Emerging
Technologies(unannounced)
As much as I would love to do it, I
cannot show you that.
20Cisco Confidential
Agenda
• Increasing Role of Technology & Communications
• Cisco’s Internal Innovation Strategy
• Emerging Technologies:
Interoperability Systems
Physical Security
Digital Media Management
TelePresence
• Summary
21Cisco Confidential
Systems Interoperability—Cisco IPICS
22Cisco Confidential
Cisco IPICSSystem for Communications Interoperability
Cisco Innovation @ Work
25 Patents Filed
PSTN CellPC VoIP
Comprehensive Voice Interoperability
Radio Interoperability
UHF VHF
NXTL
Contextually Integrates Multiple Modalities of Communication for Interoperability and Collaboration
GIS and Data SensorVideo
Policy-Based Communications Interoperability
Automation, Inference Engine, Workflow
Integration
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Same IPICS System Enterprise Safety and Security - Business Operations - Interoperability
Fleet and TacOps (Tactical Mobile Ops)
Financial
Enterprise, Commercial, Retail, Healthcare, etc.
Oil and Gas/Utilities
Transportation
Same Horizontal Platform Across Verticals
IPICS System
LMR Gateway
●
Radio to IP
●
Phase 1
Public Safety/ State and Local/ Education
Federal
Defense
IT$ Ops$
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Physical Security—Video Surveillance
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Cisco Services PlatformNetwork Video Recorder
Cisco Client Software
Viewing and Configuration
Cisco Services Platform
Digital Video Recorder
Cisco IP Gateway
Video Encoder/ Decoder
Cisco Innovation Delivers Access to Video at Any Time from Any Place, Enabling Real Time Incident Response, Investigation and Resolution
Service Oriented Network Architecture
(SONA)
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Integration with Cisco Products
• Deployed on SONA foundation to increase business impact
• Network integration is a critical differentiator, providingInterconnectivitySecurityAvailabilityStorageRemote management, monitoring and viewing
• Video surveillance drives foundation sales
BusinessApplications
Collaboration Applications
Server Storage Clients Networks
Application Networking Services
Infrastructure Services
Networked
Infrastructure
Layer
Interactive
Services
Layer
Application
Layer
Adaptive
Management
Services
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Digital Media Management—Digital Media System
28Cisco Confidential
What Is the Digital Media Opportunity?YouTube for the Enterprise
Mobile Media Mgmt.
Digital Signage
Growth
New Opportunities
Live Webcasting
Future
Today
Yesterday
Video on Demand
Digital Media System
$2B - $3B Market by 2010
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Cisco Digital Media System
Cisco Video PortalDigital Media Manager
Program Manager Category Manager
Interface Manager Lineup Manager
Account Manager Deployment Manager
Digital Media Encoder 1000
Digital Media Encoder 2000
MediaDelivery
MediaManagement
MediaCreation
Solution that Spans Across the Digital Media Value Chain
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Cisco TelePresence
31Cisco Confidential
Why call it TelePresence?
Telegraph Acoustic TelegraphTelephone
Better Customer Experience
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Cisco TelePresence Complete Solutions
Endpoints • Group and executive
High DefinitionVideo Switch • Multi-point
Software• Scheduling• Automated call launch• Video concierge
Network • Business to Business
Services • Planning and design• Operate services
Cisco Product Solution
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Cisco TelePresence Meeting SolutionEndpoints Product Breadth
Cisco TelePresence System 3000
• 12 seats at the virtual table
• Purpose-built room
• Ships FY Q2
Cisco TelePresence System 1000
• 4 seats at the virtual table
• General purpose room
• Ships FY Q2
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Cisco TelePresence ManagerExperience Middleware
Room SchedulingEnterprise Groupware
Automated Call Launch“One Button to Push”
ReportingBilling
Administration
CiscoTelePresenceManager
User Experience
*Roadmap
Real-Time Services
CCM NetworkPlatform
IPCC
IPCOM
OutlookNotes
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RoadmapMultipoint Solutions
• Cisco TelePresence multipoint
• Optimized for Cisco TelePresence
Full-size continuous presence by screen
Switching by table segment
Interoperable between endpoints CTS 3000, 2000, 1000
• Call launch, “one button to push”
• Second half FY’07
New York
Toronto
Los Angeles
London
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Cisco TelePresence Global Deployment Plan
Q1 Q2 Q3 Q4
FY 07
San Jose
CBC/EBC
Field Sales and Other Offices
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Conclusion
38Cisco Confidential
Cisco—Innovation
• $3.8 billion R&D investment annually
• 17,000 engineers working in more than 10 major labs worldwide
• #1 in most markets in which we compete
• Over 100 companies acquired
• More than 2,300 patents issued to Cisco inventors in last 10 years
• Multi-Protocol Routing and Switching
• Voice over IP
• WiFi wireless
• Largest contributor to IETF, IEEE
• Multi-Protocol Routing and Switching
• Voice over IP
• WiFi wireless
• Largest contributor to IETF, IEEE
MAJOR INNOVATIONS
Development
Acquisitions
EMTG = 6x number of EMTG = 6x number of patents than rest of patents than rest of
Cisco R&DCisco R&D
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Conclusions
• Partnership, acquisition, and internal innovation
• Internal innovation unleashes employee creativity
• Transparency promotes participation
• Build on inherent advantages of scale
• Leverage architectural strengths
40Cisco Confidential
Thank YouThank You