Cisco Thinks it Will Soon be a US$19-Trillion Industry
Cisco Systems has placed its biggest bet on the Internet of Everything (IoE) which it estimates will yield US$19 trillion in profits and cost savings over the next 20 years.
“Go Digital or Die”: So it comes as no surprise that Cisco CEO John Chambers went to the extent of saying at a partner summit this week “that almost half of today’s enterprises won’t exist in a few years unless they embrace the digital revolution.
“Go digital or die” was his message to enterprises.
US$9 trillion by 2020: In a report entitled, The Internet of Everything is the New Economy, available at its corporate site, Cisco refers to an IDC prediction that the shift would generate nearly $9 trillion in annual sales by 2020.
Whether it is a disruptive phenomenon or merely a fad that will fade away over time remains to be seen. But then the IoE market is believed to have been worth $1.3 trillion at the end of 2013, so it may not be a mere marketing gimmick.
That figure puts the IoT/IoE market bigger than the consumer electronics industry whose total revenue for the same period was about $1.1 trillion, as the Cisco report points out.
Old Wine in New Bottle: What, however, is to be given some thought is that the IoT (or the IoE, as Cisco likes to call it) is the fact that it is an evolution of an idea that could be traced to M2M (Machine to Machine) communications.
Emerging technologies can often get trapped in a terminological mesh that I talked about through a post in my blog in February this year.
Software Forays: Cisco is also making bold forays into software, with nine out of its last 10 acquisitions being software or cloud-based companies.
Speaking at the Partner summit, Mr Chambers said: “You don’t see us as a software company? Don’t bet against us (in software). In five years we will take that market together,” he told them.
Whether that happens or not, it will be interesting to watch how the IoE market evolves and how it makes what looks like Utopian thinking today real!
G Joslin Vethakumar