IoT Opportunities for Indian Entrepreneurs



good morning everybody and thanks for attending this session and a little thanks for a very kind introduction I'm going to talk about opportunities in IOT from an Indian entrepreneurs perspective and before that I'm going to talk a little bit about Cisco IOT how we look at the space and then get into the activities in India and the kind of action that we are seeing here so just about myself right now I run Cisco's investments in M&A arm for asia-pacific so I wear a venture investor hat but in my past lives I've been on the business side I've been an entrepreneur as well so I'll try and try and share of time share how I see this whole space evolving cisco likes to call this as IO II internet of everything now it's not not just a catchphrase but there is a reason behind this you know one could safely say that IOT or connecting machines has been something that has been around for many years you know it took decades to build an overnight sensation so it's not not anything new what is new now is the connectivity so you have the sensors you have the network you have the cloud and eventually all this connects back to the process and back to the people I think that's where this whole aspect and this whole ecosystem coming together that's what makes it extremely interesting so how big is the opportunity 50 billion devices 19 trillion dollars of value 15 trillion 20 trillion and so on and so forth there's a reason why have these numbers in red I was in a session a couple of months ago and you know I've had two extremes in my career I've been a strategy consultant and I being an entrepreneur as well probably in that session I was wearing my strategy consultant hat and I started talking about you know billions of devices trillions of value and I had one gentleman in the audience who was a budding entrepreneur who I would be candid to say was a little irritated he stood up and asked you large company guy you always talk trillions and brilliance tell me what is the exact value you know tell me is it is it real or is it it is just some large number which is which you cannot really lay your hands on and and I am going to try and be specific today so instead of staying at that trillions of dollars and billions of devices I'll talk about the actual value and one of the things I want to reiterate here today that if you look at IOT the stack itself everything is being rebuilt think of the mobile industry the mobile phone industry the smartphone industry think of at the hardware level what Intel had to go through a ARM arm coming in Broadcom and so on and so forth the whole industry got disrupted same thing we expect as cisco to happen in IOT as well so it's the hardware its the software it's the services a whole new set of things will be created in this industry there are some things that have happened in the past but a whole new set of value will also come in there will be many vertical solutions so I will talk a little bit more about that later but the value also will come in each vertical it is not just going to be horizontal platform it's the ultimate value that you bring to that industry another key point to note in IOT if you're an entrepreneur you have a start-up you're selling to the be use you're selling to the business units and you're selling value you're either selling ability to increase revenue or reduce costs it's not just an IT cell that's another key point that that we all have to keep in mind as you look at this industry I'll give a couple of examples of off Cisco and IOT and you know some of the activities that we've been doing globally smart City is one of our big focus areas it's something that has happened in a large scale in various places in Asia and Europe in the US as well some are Greenfield some of brownfield India is again also talking about smart cities so we we have several several projects now where cisco has implemented several in partnership with the municipalities in the local government a series of services and infrastructure which is delivering smart services one example is barcelona where there was a redeveloped and a lot of new companies but invited after that area was redeveloped it's it's it's something that's there is a lot of new startups in that city we offer a lot of services you know you might have you know I won't go through all of these but you would have heard some of these smart lighting smart water waste management and so on so forth so that's from a city perspective I want to play a short video so moving from a city a large kind of set up to what you could do in a particular industry I just mentioned that industry is where the value will be so you'll have to create vertical application we as cisco implemented this error customer let me try on so and this is this is a customer a mining company Canada based where we actually brought the whole concept of IOT internet of everything to life and something that delivered value to that company the productivity actually went up four times so I think they were doing about half a billion dollar going up two billion dollar rock effect I just play this for a couple minutes they'll give you a sense of what what's happening in I uh it was a very I would have to say a very nerve-wracking experience you're literally driving under the earth the smell is the smell of sulfur the smell of dirt when you go down there and they're blasting and they're digging in there it's a very difficult job it's very dangerous it's hard work it's hard labor and the mountain doesn't give everything you wanted to give sometimes it's stubborn we've gone to a revolution of technology which is the vehicles in the haulers and the crushers how do we optimize what we have and how do we bring it where we need it versus I think we need to go there and I think we need to halt that and I think we need to drill there if you take the internet of everything what we've done is saying hey that's a great idea let's see how we apply to the mining sector what we've changed is we've coined the phrase take the lid off the mind and what that means is that the mine is completely Wi-Fi enabled we've enabled our vehicles we've enabled our personnel we've enabled the operation and in an underground environment to be seen view touched over internet access which is Wi-Fi now what we're doing is we're transforming what we classify as a device or what is a device or how is the device being used you know in our case we're no longer distinguishing between a vehicle and in a computer well the vehicle is a computer and we need that data but we don't physically have to be underground to see that my guys are above-ground and their office and they're getting this data in their office the same way I'm getting the data here in Toronto we have video conferencing we have jabber you know that's now all coming together and doing it in real time so that's the concept of taking the lid off the mine people said no mark that's not gonna work well look at our production increases I mean to me that that's that's the proof of the pudding right there right 500,000 times to 2 million times which you virtually could Drupal our production look at our cost savings 2.5 million across the board in long distance costs and communication cost and productivity gains safety is one of our core values we have that so that's the challenge in the industry is that show me it's working you may have a concept but show me that it works and that's now changing and saying hey look DPM Dundee precious metals it worked for them we've actually taken so I'll just stop it there the main point that I was making was that it's about the industry it's about the vertical it's about the value that you deliver it's about the revenue and costs so in that sense it's very specific when you're talking about Internet of Things it's not just about cool devices but it's about actual business value I want to switch gears here and like I promised in the beginning I'm going to get a little specific so if you're an entrepreneur in India and you're looking at building companies out of India what are the areas that you can play in now we at Cisco have sort of divided or looked at the whole stack I talked about the whole stack changing so what is that stack there are seven layers so think of this as the new OSI and you start all the way from the physical devices and the sensors and as you go up you talk about connectivity infrastructure you get to the platform layer eventually you get to the applications and then each layer values will be created new companies will come in new new applications will come in new devices will come in ultimately you're all bringing it together to the business process and you can also think of consumer in the same way so internet or things are not just about b2b it's about consumer as well and you can pretty much apply the same kind of wave framework so if you've got a connected lifestyle what is what what is the platform what is the application what is the value you're getting out as an individual I'll be using this framework as I as I go along and again apply the same thing so a lot of you would know some of these things but but what I like and again I'm going back to little bit – my strategy background is is how do you start evaluating those opportunities and and our hypothesis and my experience of what I am seeing across the globe activities in IOT there are basically three layers so at the bottom there is infrastructure so you get two sensors you get a data collection you convert all the sensor data to IP you do some basic analytics you bring in security now that layer from an Indian perspective just the sensor layer yes there is opportunity but there are many players as well so think of the China's that I want think of the companies elsewhere in the world lot of activity happening it there are some small gaps so security for example and in in the IOT world security is going to be quite important if you connected all your devices to the Internet and and there is something that goes wrong and some Trojan comes in and everything stops working that's a nightmare so security is an area where we as Cisco ventures see that a lot more could be done so if you're thinking of startups or opportunities here within the infrastructure layer think about security final quickly I will so like this security platform and applications I think the the platform layer again is a crowded space the idea is that you created an i/o a pass platform as-a-service several players again doesn't mean that there is no space their applications is where I think a lot of value can be brought in from startups from India so you're thinking industry you're thinking of the value and the processes and the needs of that industry and creating applications that ride on this whole infrastructure I'll go very quickly I have been warned I have just two three minutes left again bringing this to specifically in India what are the kind of areas that you could work in I've talked about this so in India you can think of vertical apps services while services is an old thing you know IT services game has played out it's a scale game there are large players you know so new entrance is difficult but we believe or at least my hypothesis is that services in IOT whether it's managed services whether it's consulting there will be a new space there is nobody who can go and bring this all together for a customer even run it so that's an opportunity yeah you may not get a whatsapp kind of valuation you know Services is not that game but you'll get good cash flow and don't forget as an entrepreneur cash is ultimately King sensor Plus app so I wanted to talk a little bit about it sensor is something that you can get devices you can build you can source it from Taiwan but you add an app to it and if you think of the Indian context now with that app you're delivering value so if you see a lot of the startups out here you could imagine that that's that's what they're trying to do they've got a sensor they've got some basic device or very cheap device but they've added value by adding an app to it and now you could go to an industry or you could go to a customer and deliver value on the from the global front if you're looking at targeting the global market I would stress on security I talked a little bit about it security globally is a space where IOT can do with a lot of startups very quickly there is action in India I will talk about a couple of companies you know if you look at you know some of the some of the areas which I talked about so you have verticals like manufacturing transportation manage services platform so Co access is one company that that's one of Cisco's investi companies they're in the manufacturing space and I want to talk about it for 30 seconds Co axis has got a platform that collects real-time data from all machines on the production flow any make any type analog digital what we have done is that in turn we've taken that platform and integrated to our routing platform as well so you now got a full value that can be delivered to the manufacturing floor Annetta is another interesting company it's in the in the technology space so they have a new type of semiconductor for IOT devices which is extremely power efficient its power consumption is a tenth of the existing semiconductors and again there are there a bunch of other players there's a platform company out of Sri Lanka called WS o2 which is an open-source middleware platform but the beauty of the platform is it's so light it could literally run a very basic sensor kind of devices again these are some of the cisco invested investing companies some of the other names are not a portfolio companies but interesting place as well I would like to conclude good bye saying that from a Cisco lands we are looking at you know the whole IOT ecosystem in three pillars we are working very closely with large companies as partners but we are also creating IOE innovation centers across the globe there are six already in the globe there are many more that want to come next year on the investment front we actually have 150 million dollars committed to various new technologies across the globe we have a pool of money for India it's a it's public information it's 40 million dollars for early-stage kind of companies out of India and then we are also creating a developer community I think the idea the the main thing about IOT is that it's not one company can do it alone it's not a Cisco or a Honeywell or a Schneider I go back to the first thing that I said it's a new stack being built and all of us will have to work together with each other startups new companies large companies and so on and so forth I'll bring back my red letter 19 trillion and as I said I'm going to be more specific this time around but in the end of the day whether it's a trillion dollar value 19 trillion or not the main point is there is a lot of value that could be created in the IOT space in partnering across small companies large companies and creating both value both on the b2b side and the consumer side I'll conclude with that and thanks for your attention thank you a lot there is time for a couple of questions if there are questions from the audience there is one over there if you could just ask the question I'll repeat it u.s. us UK and Canada area so what you interesting to say about there's aspect to services now do you mean that service also includes support activity because when you are talking about 50 billion devices I see there's a whole lot of opportunity for companies who are really providing tech support in those because you can't go and then physically serve or support a device if a sprinkler goes off if thermostat goes off I mean what you can do remotely what you can do to do better service on that device so do you see that sort of opportunity coming in near-term absolutely is it so in services expect a lot of opportunities you know it could be all the way starting from helping customers decide what their IOT strategy is where should they go and what value they should expect it could go all the way to support as well to my mind cloud which is a more mature market today but five years ago cloud was sort of just coming up and a lot of services companies came up during that time not many in India but I have seen several in in in asia-pacific and and they brought a lot of value to customers now services there's one more thing I'll add here to services the managed services model meaning today either it will be the telco so in the u.s. you have Verizon to the world actually creating IOT managed services place for various verticals telcos in India may do it may not but that could also be an opportunity meaning if you look at the India business it's all about an optics models so can you go to a customer and say I have all the stuff that you need the sensor plus app and I'm going to run it for you and this is the value I will deliver that that is something that is well accepted in India so you have several things you could do in services yeah thank you we'll just take one more question if there is another question from the audience yeah please Solutions there is a smart care platform from Cisco which there's about managed services and whole lot of stuff so for a start-up how do you see that smart city space of 100 smart cities which are coming up as far as Cisco product and technology and services are concerned so in fact I was talking to Anil earlier today you know for a starter from a Cisco smart city perspective it could be the vertical applications that I was talking about so go up a layer each smart city each country would have different needs certain developed geographies will have a different set of applications needed India would have different set of applications so there are partnership programs within Cisco our iue business and smart city business they run partnerships large companies small companies so that's one way to partner with Cisco other side of smart cities is if you go specifically into the technology stack if I take security as an example so if you've got certain technologies where you believe that you you're sort of delivering security all the way from the sensor you know the sensor data gets encrypted for example all the way up to the cloud or some parts there off so it could be different areas but I think my my immediate comment would be more on the vertical application side the IO e pass layer that I talked about sort of middleware for io e that's still a Holy Grail no company yet I think has has achieved full success there that could be another area for partnering with with companies like Cisco how long thank you very much and thanks to the audience for the questions Alok will be around here if you have any further questions you can take those offline

5 Comments

  1. Mohana K said:

    I must say that its being very informative and bringing the real value on surface how entreprenuers and opportunities come together.. Thank you Nasscom

    May 22, 2019
    Reply
  2. Victor Girones said:

    Nice IOT Video if someone wants more info on the topic read this post http://bit.ly/2yPAx6D

    May 22, 2019
    Reply
  3. Vianney Delvoye said:

    More about IoT on that amazing blog http://bit.ly/2hlhEkG

    May 22, 2019
    Reply
  4. Ashvani Shukla said:

    So why should Indian Entrepreneurs focus on services just because India is know for that and not build whatsapp? And devices should be bought from Taiwan, China… why not hardware innovation from India? This is typical mindset that is hampering real innovation in India and not just business process optimization. 

    Cisco seems to be spending millions of dollars and they could give implementation example of a mining company! Huh….tons of companies have already done it with M2M. Expecting something valuable from Cisco!

    May 22, 2019
    Reply
  5. Smm Guru said:

    While this enhances the appliaction functionality, it also introduces security issues. Since everything is virtual in case of a cloud hosting, it is difficult to gain fine grain control of the "data at rest" and "data in transit". http://www.valencynetworks.com/penetration-testing-services/cloud-security.html

    May 22, 2019
    Reply

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