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Chambers: Cisco will become the number 1 IT company

John Gallant | July 23, 2013
Cisco boss talks about how SDN fits into its architecture, what Insieme is all about and why the Internet of Everything matters to IT pros.

So what has changed is the CEOs are beginning to get it. They're beginning to understand this isn't a nice next-generation of the Internet. In my opinion it's going to be bigger than all the prior generations combined, both on loads, the way it changes society, implications, etc. And while I call it the Internet of Everything, something that might bite with the most business users is they're going to digitize every company in every country.

When I went through Israel a year ago and we talked concepts about how you completely position your country for the future. How do you do productivity faster than anyone else? How do you do your education system better than anyone else? How do you do your healthcare better than anyone else? How do you include 20% of your population who don't participate in your core industries, i.e., technology, how do you do the training on that? How do you do defense? How do you do security? How do you do startups? When we were there just a month ago, we announced with the Prime Minister, [Benjamin] Netanyahu, our architectural play for the country. We announced with the president, [Shimon] Peres, how we're going to do inclusion.

We announced the communication lead, in terms of how you do fiber to the home and wire this together in a way that truly gets the digital infrastructure for the country. We announced with the welfare and inclusion group, which is really the human resource side of the house, how we're going to train people and make the transitions. We had major announcements of each one.

They will be the first Internet of Everything country, or put a different way, the first true digitized, fast-track training with the advantages of that. You're starting to see which companies and countries understand this. The ones who are most powerful think of it as a total architecture. So a smart, connected city in Songdo, outside of Seoul, South Korea - everything there is infrastructure for the future. It's all Cisco-based, by the way. The President of South Korea said they felt they would get 1% to 2% growth from GDP. And the United Nations located their whole concept, not the Internet of Everything, but the concept for next-generation emerging countries, in what city? Songdo, in South Korea.

What is the role of the CIO? They have got to understand what the opportunity is here. They've got to understand that varies by industry, with probably the fastest one taking off being manufacturing. We think it's 25%-27% of the first decade's opportunity of $14 trillion profit.  This isn't total available market. This is profit on top of OPEX, CAPEX, people, everything. You don't have to explain the amount of money you can make or what does that mean - especially when you then take it to the car and connect it through seven or eight major networks in the car, and new revenue-generation capabilities. The answer is, the IT people have to begin to really come up to speed on it. We're beginning to train in our classes top customers and people on how do you really do the Internet of Everything with certification levels? We led the steering committee which met here three or four months ago with 65 top companies from around the world on this, and they aren't your normal peers.  Some are competitors, a lot were software players, there were the GEs, Schneider's [Electric] of the world.  There were only two service providers in the room. It was a unique combination. The first conference on this will be in October in Barcelona. Now remember, Internet of Things is the architecture. Tying together things plus people plus data plus process is where you get the productivity.


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