2.1.8 The IoT and the IoE
In the video, Jim Grubb, Cisco's Chief Demonstration Officer, and John Chambers, Cisco’s former CEO, during the Cisco Live 2013 keynote demonstration, define the opportunity presented by the internet of things and how the internet of esverything will take advantage of these new opportunities.
The internet of everything is the networked connection of people, process, data and things.
In the video, the IoT is described as a market transition that is taking advantage of the reduced cost in connecting things to the Internet. As a result, the IoT implies a fundamental shift in the state of our present economy as we move towards connecting 50 billion devices by 2020.
However, the IoT is only one of several market transitions that are enabling the full potential of the IoE. For example, the following are transitions that are also enabling the IoE’s full potential:
- mobility − providing access to resources from any device, at any time, and from any place
- cloud computing − providing distributed computing resources and services over a network
- big data − as the volume of data being produced is accelerating, so too is our capacity to analyse and process it
- IPv6 − expanding the current internet address space by 3.4×10^38 addresses, easily accommodating 50 billion devices by 2020, and billions upon billions more.
The amount of value an organisation derives from IoE depends on its ability to capture transitions, such as cloud, mobility, and the IoT. For example, John highlights Smart Grid, a solution that realises the benefit of the IoE by improving energy efficiency on the electricity grid provided by utilities and where the energy is used in homes and offices.
IoT is about how to connect the unconnected, making things accessible by the internet. As it relates to IoT, IoE is addressing why we are connecting the unconnected.