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Keynote presentation @ Cisco Expo 2011 in Slovenia
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The future will be different cisco expo slovenia 2011, 20110310 v1.1 jg
1.
Cisco Expo 2011 THE
FUTURE WILL BE DIFFERENT JoĆŸek GruĆĄkovnjak Director, Cisco IBSG © 2010 Cisco and/or its affiliates. All rights reserved.
2.
"Prediction is very
difficult, especially about the future." Niels Bohr, Nobel Laureate "There is no reason anyone would want a computer in their home." Ken Olson, founder of Digital Equipment Corporation "Who wants to hear actors talk?" H.M. Warner, cofounder of Warner Brothers, 1927 "The wireless music box [radio] has no imaginable commercial value." Said to David Sarnoff, founder of NBC "This 'telephone'... is inherently of no value to us." Western Union memo, 1876 © 2010 Cisco and/or its affiliates. All rights reserved. Internet Business Solutions Group Cisco Confidential 3
3.
Exponential times Mega-trends and megachallenges The role
of IT⊠The future will be different⊠Shaping the past, present and future How do deal with the ânew normalâ ⊠and opportunities for service providers ⊠and will favor the brave. © 2010 Cisco and/or its affiliates. All rights reserved. Internet Business Solutions Group Cisco Confidential 4
4.
Exponential times Bell Labs,
9/2009 15.5 Tbps 400 DVD/sec, 7000 km 2000 Download Time 2009 Download Time 4 GB DVD Movie 3 days 2 hours 3 MB MP3 Audio 3 minutes 5 seconds 1MB Email 1 minute 2 seconds Speed / Bandwidth Activity Ethernet Protocol Standardized AT&Tâs Bell 103 modem 300 bps 1962 9,600 bps 1980 100 Gigabit Ethernet 100 Gbps 10 Gigabit Ethernet 10 Gbps Gigabit Ethernet 1 Gbps Fast Ethernet 100 Mbps Ethernet 10 Base T 10 Mbps 28,800 56,600 bps bps 1989 1990 1995 1998 2003 2010 Sources: http://en.wikipedia.org/wiki/IEEE_802.3; http://en.wikipedia.org/wiki/List_of_device_bit_rates © 2010 Cisco and/or its affiliates. All rights reserved. 1984 Internet Business Solutions Group 1997 2006 Cisco Confidential 5
5.
Exponential times Core i7
i980 1,17B transistors, 147,600 MIPS 160,000 Interactive gaming, ⊠Quad 2 Duo quad core 140,000 Performance (MIPS) Launches the content & video boom 820 transistors, 59.455 MIPS 120,000 Launches the laptop boom Core 2 Duo 100,000 291M transistors, 27,709 MIPS Launches the Internet boom 80,000 Launches the PC boom 60,000 Pentium M 80286 40,000 55M transistors, 5,935 MIPS Pentium 3.1M transistors, 112 MIPS 123k transistors, 2.66 MIPS` 20,000 0 1970 1975 1980 1985 1990 1995 2000 2005 2010 Sources: Intel Corporation, 2010; Dr. Steve Reyer; http://en.wikipedia.org/wiki/List_of_Intel_microprocessors © 2010 Cisco and/or its affiliates. All rights reserved. Internet Business Solutions Group Cisco Confidential 6
6.
Exponential times Core i7
i980 1,17B transistors, 147,600 MIPS 160,000 Interactive gaming, ⊠Quad 2 Duo quad core 140,000 Performance (MIPS) Launches the content & video boom 120,000 Launches the laptop boom Launches the Internet boom Core 2 Duo 27,709 MIPS ARM processor architecture Pentium M â55M transistors, 1,600 DMIPS @ 800 MHz Pentium 80286 40,000 Apple iPhone 4 âą Apple A4291M transistors, processor 100,000 80,000 Launches the PC boom 60,000 820 transistors, 59.455 MIPS 5,935 MIPS âą 512 MB RAM 3.1M transistors, 112 MIPS 123k transistors, 2.66 MIPS` âą 16 or 32 GB flash drive 20,000 0 1970 1975 1980 1985 1990 1995 2000 2005 2010 Sources: apple.com, http://en.wikipedia.org/wiki/ARM_architecture Intel Corporation, 2010; Dr. Steve Reyer; http://en.wikipedia.org/wiki/List_of_Intel_microprocessors © 2010 Cisco and/or its affiliates. All rights reserved. Internet Business Solutions Group Cisco Confidential 7
7.
Exponential times Movable type. Johannes
Gutenberg Print in digital format. Text. Photos. Audio. Video. Together. 1439 2007 2010 © 2010 Cisco and/or its affiliates. All rights reserved. Internet Business Solutions Group Cisco Confidential 8
8.
Entertainment Central living device Changing media consumption and
distribution Providing relevant information Communication Media Computing Transportation Information Entertainment and group communication Main creation device Mobile communication platform? âŠliving the six-screen life © 2010 Cisco and/or its affiliates. All rights reserved. Internet Business Solutions Group Cisco Confidential 9
9.
Exponential times Members (millions) 600 âą
Facebook: 4th most popular web site 500 500M+ unique visitors 3rd most populous nation worldwide 60% USA retailers maintain fan page 400 50% users log-in every day 30B photos uploaded to Facebook in 2010 300 âą Visits to social shopping sites â 244% 200 Etsy, kaboodle, Crowdstorm 100 >25% adults posted product reviews 2004 2005 2006 2007 2008 2009 2010 âą 126M blogs on the WW internet âą 90M+ Tweets on Twitter per day âą 82% of Internet users view videos online Sources: Facebook, 1/2011; techcrunch.com; âą Interactive gamers purchase real goods © 2010 Cisco and/or its affiliates. All rights reserved. Internet Business Solutions Group Cisco Confidential 10
10.
Exponential times âą Driven
by consumers⊠79% of global IP traffic in 2009 60,000 PB per month 70,000 forecasted to grow to 87% by 2014 50,000 ⹠⊠by video 40,000 growing from 38% of all IP traffic in 2009 to 55% in 2014 30,000 20,000 ⹠⊠and mobile data 10,000 growing with 108% CAGR between 2009 and 2014 increasing 39 x 2009 2010 Consumer IPTV/CATV Consumer Internet Video Business Internet © 2010 Cisco and/or its affiliates. All rights reserved. 2011 2012 2013 2014 Consumer Internet Data Business Managed IP Mobile Data Internet Business Solutions Group Cisco Confidential 11
11.
Exponential times Digital Universe
- exabytes Digital data is increasing 10 x every 5 years 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 - 2020 2018 2019 2017 2015 2016 2014 2012 2013 2011 2009 2010 2007 2008 Source: The Digital Universe Decade â Are You Ready?, IDC, May 2010 © 2010 Cisco and/or its affiliates. All rights reserved. Internet Business Solutions Group Cisco Confidential 12
12.
Web 4.0 Individual and
Group Productivity 2020â2030 Agents and reasoning Semantic Web Web 3.0 2010â2020 Semantic search Web 2.0 Naturallanguage search 2000â2010 Web 1.0 1990â2000 Keyword search PC Era 1980â1990 Websites, email, directories The Web OS Tagging and folksonomies World Wide Web Folders, databases, lists Desktop Size of Data, Size of Groups Sources: Radar Networks and Nova Spivack, 2007; Cisco IBSG, 2008 © 2010 Cisco and/or its affiliates. All rights reserved. Internet Business Solutions Group Cisco Confidential 13
13.
Exponential times 18,000 Global Exports
(B$) 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 1950 1960 1970 1980 1990 2000 2010 Source: World Trade Organization Statistical Database, March 2011 © 2010 Cisco and/or its affiliates. All rights reserved. Internet Business Solutions Group Cisco Confidential 14
14.
Exponential times 8.0 6.0 More developed
regions 2050 2045 2040 2035 2030 2020 2015 2010 2005 2000 1995 1990 1985 1970 1965 1960 1955 1950 0.0 1980 2.0 2025 4.0 1975 Population (billions) 10.0 World Source: World Population Prospects: The 2008 Revision, UNDESA, online database: http://esa.un.org/unpp/index.asp © 2010 Cisco and/or its affiliates. All rights reserved. Internet Business Solutions Group Cisco Confidential 15
15.
Exponential times 8.0 6.0 2000 1900 1800 1700 1600 1500 1300 1200 1100 1000 900 800 700 600 500 200 100 0 0.0 400 2.0 1400 4.0 300 Population (billions) 10.0 World Source:
World Population Prospects: The 2008 Revision, UNDESA © 2010 Cisco and/or its affiliates. All rights reserved. Internet Business Solutions Group Cisco Confidential 16
16.
Exponential times 300 200 (2005 =
100) Commodity prices index 250 150 100 50 0 Fuel / Energy Food Industrial Inputs Source: Index Mundi © 2010 Cisco and/or its affiliates. All rights reserved. Internet Business Solutions Group Cisco Confidential 17
17.
Exponential times 90,000 10.0% 80,000 8.0% 70,000 6.0% 4.0% 60,000 2.0% 50,000 0.0% 40,000 -2.0% 30,000 -4.0% 20,000 -6.0% 10,000 -8.0% - -10.0% 1980 1985 1990 World GDP Advanced
Economies Slovenia 1995 2000 2005 2010 2015 World Emerging and developing economies Source: World Economic Outlook database, October 2010, International Monetary Fund © 2010 Cisco and/or its affiliates. All rights reserved. Internet Business Solutions Group Cisco Confidential 18
18.
NEW NORMAL © 2010
Cisco and/or its affiliates. All rights reserved. Internet Business Solutions Group Cisco Confidential 19
19.
Exponential times Mega-trends and megachallenges The role
of IT⊠The future will be different⊠Shaping the past, present and future How do deal with the ânew normalâ ⊠and opportunities for service providers ⊠and will favor the brave. © 2010 Cisco and/or its affiliates. All rights reserved. Internet Business Solutions Group Cisco Confidential 20
20.
Mega-Trends Globalisation Aging Population © 2010
Cisco and/or its affiliates. All rights reserved. Increased Asian competition Sustainability: environmental and economic Innovation Efficiency âPersonalisationâ Effectiveness Rapid customer adoption of new technologies Mega-Challenges Productivity Internet Business Solutions Group Cisco Confidential 21
21.
Superior Customer Experiences
and the Borderless Organization Mega-Challenges Business Transformation Models INNOVATION: Improve innovation to provide your company with differention and a competitive edge in the eyes of customers Revenue & PRODUCTIVITY: Improve productivity through cross-functional collaboration (including partners) © 2010 Cisco and/or its affiliates. All rights reserved. Profits Opex Internet Business Solutions Group Cisco Confidential 22
22.
Value is maximized
when both areas are pursued on intra and inter-company level Value Innovation Innovation2 Innovation Inter-organization + Productivity Intra-organization Productivity © 2010 Cisco and/or its affiliates. All rights reserved. Internet Business Solutions Group Productivity2 Technology Leverage Cisco Confidential 23
23.
Controlling Efficiency Is Commonplace Productivity
/ Impact Process automation and re-engineering are important, but not enough⊠Information sharing 1990 © 2010 Cisco and/or its affiliates. All rights reserved. Transactions 2000 Interactions 2005 Internet Business Solutions Group Cisco Confidential 24
24.
âPeopleâ costs: 84% Other
costs: 16% © 2010 Cisco and/or its affiliates. All rights reserved. Internet Business Solutions Group Cisco Confidential 25
25.
Controlling Efficiency Is Commonplace Optimizing
Human Interactions Productivity / Impact Process automation and re-engineering are important, but not enough⊠Todayâs environment requires collaboration as an organizational competency to empower employees Workforce productivity achieved with employees, ecosystem, and customers Information sharing 1990 © 2010 Cisco and/or its affiliates. All rights reserved. Transactions 2000 Interactions Collaboration 2005 Internet Business Solutions Group Cisco Confidential 26
26.
Web 2.0 Collaboration Solutions 1.1 B$ Web
1.0 Internet Solutions 3.3 B$ Information sharing 1995 Transactions 2000 Interactions 2005 Collaboration 2008 2009 Source: Cisco IBSG, 2009 © 2010 Cisco and/or its affiliates. All rights reserved. Internet Business Solutions Group Cisco Confidential 27
27.
Cisco Benefits: $1.05B*
Net, 4.9% Productivity Increase $486M ⹠Reduce real estate ⹠Avoid travel $85M ⹠Create new revenue streams ⹠Scale expertise ⹠Increase customer intimacy ⹠Enhance executive communication Reduce costs to improve profitability Transform business to increase growth * Based on $1.168 billion gross contribution minus costs of $116 million $483M Save time to increase efficiency Speed process to increase agility ⹠⹠⹠⹠Reduce travel Reduce commuting Find people faster Find information faster $115M ⹠Shorten sales cycle ⹠Speed time to market ⹠Reduce decision-making delays Source: Cisco IBSG, 2009 © 2010 Cisco and/or its affiliates. All rights reserved. Internet Business Solutions Group Cisco Confidential 28
28.
Exponential times Mega-trends and megachallenges The role
of IT⊠The future will be different⊠Shaping the past, present and future How do deal with the ânew normalâ ⊠and opportunities for service providers ⊠and will favor the brave. © 2010 Cisco and/or its affiliates. All rights reserved. Internet Business Solutions Group Cisco Confidential 29
29.
âOld worldâ âNew Normalâ Corporate
âlabâ innovation approach Open innovation (suppliers/partners/customers) Efficient consumer transactions Personalized interactions, real-time dialogue Business mainly inside corporation External collaboration becomes commonplace Workforce primarily in-house Flexible, remote workers (home, on the road) Capex financing, manage utilization Opex, avoid unnecessary cost, âpay as you goâ Sustainability lower priority Sustainability: business as usual Standard devices, basic capabilities Multiple (PC/Mac, iPhone/BB), video-enabled Consistent user experience is needed Intra-company PC. laptop Any device Text Any media In house © 2010 Cisco and/or its affiliates. All rights reserved. Inter-company Any location Internet Business Solutions Group Cisco Confidential 30
30.
Core question: what
is your IT budget balance? Innovation and business transformation Infrastructure operations âKeeping the lights onâ 70% of the IT Budget for Maintenance, 30% Available for Innovation* *Source: Gartner - IT Infrastructure, And The Shift To âReal-Timeâ © 2010 Cisco and/or its affiliates. All rights reserved. Internet Business Solutions Group Cisco Confidential 31
31.
Need to rebalance
â business alignment and transformation are key Innovation and business transformation Infrastructure operations âKeeping the lights onâ Allows innovation & drives competitive advantage Creates flexibility & reduces costs *Source: Gartner - IT Infrastructure, And The Shift To âReal-Timeâ © 2010 Cisco and/or its affiliates. All rights reserved. Internet Business Solutions Group Cisco Confidential 32
32.
Cloud computing Infrastructure costs Actual demand CAPEX Large
capital expenditure Getting started tax Wasted money Lost customers and/or lost revenue Time Source: Cisco Services, 2010 © 2010 Cisco and/or its affiliates. All rights reserved. Internet Business Solutions Group Cisco Confidential 33
33.
CIO of Fortune
500 Pharmaceutical Company © 2010 Cisco and/or its affiliates. All rights reserved. Internet Business Solutions Group Cisco Confidential 34
34.
Internet Companies (âOTTâ) Service Providers Systems Integrators
& Server Vendors Typical Players Unique Assets Competitive Advantage ⹠Global Footprint ⹠Massive Scale ⹠Fast Moving ⹠Stability Concerns Challenges ⹠Security & privacy ⹠End-to-End Network/IT ⹠Strong SI Capability ⹠Security & SLAs ⹠Enterprise Trust ⹠Application QoS to CPE ⹠SMB Channels/Brand ⹠Priced higher than OTTs ⹠Professional service capabilities vs. large SIs ⹠No End-to-End Control ⹠Business agility Source: Cisco IBSG SP © 2010 Cisco and/or its affiliates. All rights reserved. Internet Business Solutions Group Cisco Confidential 35
35.
Global Telecommunications Market
Capitalization 4 Wave 1 US$Trillions Wave 3 PTT Web 1.0 Deregulation Basic Internet POTs Mobile voice TDM 3 Wave 2 TDM / IP Web 2.0 Broadband, video, mobile data, network as a platform, IP 2 ? 1 0 92 94 96 98 00 02 04 06 08 Year Source: Dow Jones Global Telecoms Index, to June 3, 2009; Cisco IBSG, 2009 © 2010 Cisco and/or its affiliates. All rights reserved. Internet Business Solutions Group Cisco Confidential 36
36.
Exponential times Mega-trends and megachallenges The role
of IT⊠The future will be different⊠Shaping the past, present and future How do deal with the ânew normalâ ⊠and opportunities for service providers ⊠and will favor the brave. © 2010 Cisco and/or its affiliates. All rights reserved. Internet Business Solutions Group Cisco Confidential 37
37.
Some statements CEOs
agree with ⹠The correction will impact advanced economy consumer spending for several years to come (5.34) ⹠IT-enabled changes will be a key element of our post recession strategy (5.13) ⹠Emerging economies are poised for am multiyear period of rapid growth and a rising standard of living (4.96) ⹠The next decade will be far more volatile and unpredictable than the last (4.95) ⹠There will be a major wave of merger-and-acquisition (M&A) activity in 2010/2011 (4.95) ⹠Many companies and industries will have to redesign their business models (4.90) Source: Gartner CEO & Business Executive Survey 2010 © 2010 Cisco and/or its affiliates. All rights reserved. Internet Business Solutions Group Cisco Confidential 38
38.
Spending more on
new investments By how much, if at all, do you expect your organizationâs IT budget for operating expenses and new investments will change in 2010? Source: McKinsey Global Survey results: IT in the new normal, McKinsey & Company, 2009 © 2010 Cisco and/or its affiliates. All rights reserved. Internet Business Solutions Group Cisco Confidential 39
39.
Five areas where the
CIO is key to drive business value 1. Secure alignment between business transformation and technology architectures 2. Evolve IT team skills e.g. architecture, risk management, business understanding 3. Substantiate the business impact of IT 4. Actively participate in cross-functional initiatives 5. Pilot new technologies The winning CIO in the New Normal must think like an entrepreneur. © 2010 Cisco and/or its affiliates. All rights reserved. Internet Business Solutions Group Cisco Confidential 40
40.
© 2010 Cisco
and/or its affiliates. All rights reserved. Internet Business Solutions Group Cisco Confidential 41
41.
There is no
challenge without crisis. A crisis can be a real blessing to any person, to any nation, for all crises bring progress. The true crisis is the crisis of incompetence. Albert Einstein © 2010 Cisco and/or its affiliates. All rights reserved. Internet Business Solutions Group Cisco Confidential 42
42.
© 2010 Cisco
and/or its affiliates. All rights reserved. Internet Business Solutions Group Cisco Confidential 43
43.
Thank you. © 2010
Cisco and/or its affiliates. All rights reserved. Internet Business Solutions Group Cisco Confidential 44