Transcript

JOHN T. CHAMBERS

So Jim Grubb has been doing demos. Jim, we've been doing it for, what, 15 years together?

JIM GRUBB

That's right, John.

JOHN T. CHAMBERS

This is the most complex challenge I've ever given you to figure out how we're going to do it.

JIM GRUBB

OK.

JOHN T. CHAMBERS

And I want you to do it in 12 minutes or less, to take everything I've said so far, and bring it to life.

JIM GRUBB

OK, John. Well, the first thing I want to start with is, you know, a lot of people are confusing the Internet of Things with the Internet of Everything. The Internet of Everything, of course, is a combination of all these market transitions that so well articulated, and when they all come together to give us the ability to connect people, process, data, and things.

It's the Internet of Things that is just the latest market transition, that is allowing us, then, to connect the 99% of the unconnected. And that's being driven by Moore's law and the continuing reduction in costs in computing and sensors. As a matter of fact, on the tip of my finger here, I have a sensor. Actually, this provides IP connectivity, this little chip.

JOHN T. CHAMBERS

How much does it cost?

JIM GRUBB

$0.99. Gives us IP connectivity and it has integrated Wi-Fi. And it's $0.99.

JOHN T. CHAMBERS

Fast-forward five years?

JIM GRUBB

Fast-forward five years-- pennies, right? And very low-powered. This still requires a significant amount of power. Forward, we're going to have sensors that are powered by the flecks of your shoe, or the chemicals in the soil, or the heat from your body, and we're going to be able to take all of that data and bring it back and make new decisions from that.

JOHN T. CHAMBERS

So just like we're seeing with Smart Grid, you're going to actually move a lot of this intelligence right to the edge of the network.

JIM GRUBB

That's right.

JOHN T. CHAMBERS

To be able to provide security, policy, et cetera--

JIM GRUBB

That's right.

JOHN T. CHAMBERS

And to be able to make decisions at the edge, probably, for the vast majority of interfaces.

JIM GRUBB

And sometimes for machine-to-machine connections, for example.