'Internet of Everything' to generate $14.4 trillion in value through 2020, predicts Cisco
Cisco (Nasdaq: CSCO) predicts the "Internet of Everything" will generate $14.4 trillion in value through 2020, creating a significant business opportunity over the next decade.
Businesses must transform themselves to take advantage of the potential profits and cost savings from the Internet of Everything, which is the interconnection of people, processes, machines and objects, Cisco said in a new report.
The main factors driving this development are $2.5 trillion from reduced costs through asset utilization, $2.5 trillion in improved employee productivity, $2.7 trillion for eliminated waste in supply chain and logistics, $3.7 trillion in improved customer experience and $3 trillion in reduced time-to-market through innovation.
Technology trends fueling this value creation include cloud and mobile computing, big data and increased processing power.
Cisco identified many potential uses for the Internet of Everything, including the smart grid, smart buildings, connected healthcare and patient monitoring, smart factories, connected private education, connected commercial vehicles, connected marketing and advertising and connected games and entertainment.
To capitalize on the potential uses, robust security capabilities will need to be developed and privacy policies put in place. Otherwise, the disclosure of confidential corporate data and/or personal information might discourage the adoption of the Internet of Everything, the report warned.
The potential is immense, as 99.4 percent of physical objects that may be part of the Internet of Everything in the future are not currently connected, the report noted.
More than 50 billion devices will be connected by 2020 and there will be a 44-fold increase in data creation by then, 34 percent of that in the cloud, according to Padmasree Warrior, chief technology officer with Cisco.
"All of this leads to a world of intuitive connections between people, processes, data and things on the network--the Internet of Everything. What does this mean? It means the trends we've been discussing over the past several years are all having a cumulative effect, and putting new demands on IT," Warrior wrote in a Huffington Post article.
"The onus is on IT to make applications available anytime, anywhere for employees and allow businesses to move with greater agility and speed. The goal is to move to a world of anything delivered 'as a service' from the cloud," she added.
David Evans, Cisco's chief futurist, predicted that 1.3 zettabytes of data will flow over the Internet by 2016. "As the things that are connected to the Internet become smarter and more capable, much of the computing, analytics, and decision making will take place at the 'edge' of the Internet. This shift from 'dumb' data to 'smart' information at the point of decision, as well as at the core, will allow the Internet to be more helpful, relevant, and secure," he wrote in a recent blog.
Cisco has laid out a bold vision for the future. While $14.4 trillion in value might seem like an unrealistic prediction, there is no question that there will be ample business opportunities for enterprises from the interconnection of people, processes, data, machines and objects in the coming decade.