$14 trillion opportunity in Internet of Things, predicts Cisco

Cisco Systems is preparing for a major shift in the industry, as the Internet of Things starts to become a reality. At an annual press event in San Jose, California this week, Cisco officials claimed that the much-anticipated IoT industry could be a $14 trillion opportunity, and they are ready to embrace the change.

Rob Lloyd, president of sales and development at Cisco, told the press that he believes as many as 50 billion devices will be connected to the Internet by 2020, from which, he believes, the $14 trillion business opportunity will stem. The trend will create business opportunities initially in manufacturing, but extend into government, energy and health care, he said, as sensors will become part of traffic systems, hospitals, refineries and other civil and business infrastructures. These opportunities will extend far beyond today’s budgets for computer and communication systems.

An ambitious plan for Cisco, though some might recall that Cisco’s CEO has announced this plan before. Last year, John Chambers, Cisco’s chairman and chief executive, told the press that he expects the company will experience a shift in customers, handling government and large businesses’ projects such as designing and managing systems for clean water or efficient traffic.

“The first 10 years (of the commercial Internet) were really about transactions, and the last 10 were about interactions,” Padmasree Warrior, Cisco’s chief technology and strategy officer, told the press this week. “The next 10 is about processes being more efficient.”

However, the IoT space is already presenting plenty of challenges. Cisco is working with utilities worldwide in the hopes that 10 million smart meters will be deployed by the end of the year, supporting IoT protocol. Cisco has already deployed about $180 billion worth of network equipment into the world, Warrior said, and will build hardware and software that interacts efficiently with the legacy gear, so new kinds of intelligent systems can be quickly deployed.

What do you know about the Internet of Things? Do you think it’s all hype or a real opportunity? Let us know what you think in the comment section below. Comments posted on Solid State Technology articles will not automatically be posted to your social media account unless you select to share.

 

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4 thoughts on “$14 trillion opportunity in Internet of Things, predicts Cisco

  1. Josh Birdwell

    I am a freshman at Oklahoma State currently studying Electrical Engineering. I absolutely love reading about the IoT. My passion lies with RFID technology and this is all so fascinating. I believe there is a huge opportunity to be had in this space. I hope to be able to be a player in it in the near future! There is a lot to learn and I have been doing so through the internet and other engineers/ PHD students.

    Reply
  2. Bill Corrigan

    It’s certainly not hype because these changes are happening as we speak. It makes perfect sense that we start to drive efficiencies into processes and systems based on the interconnections afforded us by the Internet.

    Reply
  3. docdivakar

    Let us see… the world GDP in 2012 was near $80 Trillion, assuming an average worldwide GDP growth of 4%, the future value will be about $92 Trillion. Cisco is basically saying 15% of the world GDP will be coming from IoT… so the question is can we believe this? I understand my assumption is rather crude (there will be products and services) but it serves to make a point!

    MP Divakar

    Reply

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