According to the CEO of Cisco systems, the networking giant, the Internet of things, will contribute as much as $19 trillion to the global economy within the next decade. John Chambers, outlined his company’s predictions at the Mobile World Congress in Barcelona, but expressed the same theory earlier in the year at the Consumer Electronics Show held in Las Vegas.
The Internet of things refers to the networked loop of all things that are connected to the Internet. Constructing the Internet of things faces many challenges, as it is becoming much easier to have devices that support internet connectivity, but it is much more difficult to have the devices connect with each other. Manufacturers are focusing on building internet connectivity to many more appliances. It can be seen in automobiles, planes, and even home appliances, such as the refrigerators, washing machines, and even thermostats, but the problem is getting them to communicate with each other. The problems Cisco and other companies face, are magnified because standards are needed, and in order to develop the necessary standards, a high level of cooperation among competitors is needed
The Cisco chairman believes that within the next five years, there will be 50 billion Internet-connected devices around the world, which represents a dramatic increase from the 10 billion that existed a few short years ago. This figure of $19 trillion is derived from calculations that depend on the rate at which the Internet is expected to grow, and it is expected that many more smart devices will be developed.
For a glimpse into the future, Chambers suggest we look at many of the sci-fi movies that always seem to include cyberspace connectivity. He believes that the internet of things will have an even greater impact on our daily lives than the Internet has had.
There are still no standards, and research is in infancy, and with many interconnected devices, the scenario presents an opportunity that hackers will relish, and security remains one of the biggest concerns.
The expectation is that in the near future, your automobile, smartphone, tablet television and other devices in the home will all be communicating with each other, even without your input. With what appears as limitless connectivity, individuals will be able to lead more productive lives, as appliances become much smarter and are able to function with less input. This productivity is what is estimated to be valued at $19 trillion.
There is a growing amount of interest in this area, and Cisco expects that the year 2014, may actually be the tipping point.Chambers cited some areas such as Barcelona and Israel that appear to be accelerating the move to more connectivity, and mention was also made of AT&T and the Digital Life services. The services that AT&T offers include solutions that allow you to remotely operate the functions in your home, such as the heating, lighting, and security systems.
The benefits of having computers involved, is that they are able to capture data much faster than humans, and when these computers are embedded into objects, with the scenario envisioned by Cisco, the market becomes open to an almost unlimited number of possibilities. It may surpass even that of mobile phones making the value of the connected Internet worth $19 trillion seem very credible.
Written By Dale Davidson