Internet of everything

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# 2.1.8 The IoT and the IoE

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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.
End transcript

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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.

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