Cisco Confidential Cisco IBSG © 2011 Cisco and/or its affiliates. All rights reserved. Internet Business Solutions Group 1

Transforming Transportation

Helder F Antunes Managing Director – Connected Car

October, 2013

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“If you think of the Internet in four generations, the fourth will be Internet of Things. It’s going to be driven by businesses because businesses have to connect all the devices.” John Chambers

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170 Years Ago: Invention of the Telegraph

100 Years Ago: Invention of the Radio

70 Years Ago: First general purpose electronic computer

40 Years Ago: First Internet connection

20 Years Ago: World Wide Web

Today Intelligently Connecting People, Process, Data, and Things

2003: 0.5B Connected Devices

2005: IP Traffic: 29 exabytes

2005: First Smartphone

2008: Video Traffic: 21 exabytes

2012: 1B Smartphones

2010: 7B Connected Devices

2017: 300M Connected Cars

2010: 0.5B Smartphones

2016: IP Traffic: 1.3 zettabytes

2013: 10B Connected Devices

2012: 25M Connected Cars

2011: 90M Smartmeters

2020: 1B Smartmeters

2020: Global Cloud Market: 500% Growth

2015: 2/3rds Video Traffic

2/3

500%

2020: 4.5B New People, 37B New Things

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99% of the World is

Still Not Connected

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Industry Segment Type of Savings Estimated Value Over

15 Years (Billion nominal USD)

Aviation Commercial 1% fuel savings $30B

Power Gas-fired Generation 1% fuel savings $66B

Healthcare System-wide 1% Reduction in System

Inefficiency $63B

Rail Freight 1% Reduction in System

Inefficiency $27B

Oil & Gas Exploration &

Development

1% Reduction in Capital

Expenditures $90B

Total $276B

Source: “Industrial Internet: Pushing the Boundaries of Minds and Machines,” GE, November 26, 2012

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Source: IRF World Road Statistics 2008, World Bank Global Road Safety Facility, Cisco IBSG Automotive 2011

Accidents

7.9 million accidents

7.4 million injured

1.3 million fatalities

$0.6 trillion cost

Congestion

90 billion hours delay

230 million metric tons

of carbon-equivalent

$1 trillion waste

(2% of GDP)

Auto Business Model

Oversized and

underutilized vehicles

75% of automotive

value add post sale

8%-15% gross margins

Road/ Traffic System

“Free” public service

No/ low return on assets

Underfunded

Deficient

Future of Mobility?

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Society

Fewer crashes

Lower traffic/road/toll operation costs

CO2 reduction

Vehicle User

Lower insurance

Lower operation cost

Less time stuck in traffic, more productivity

Internet of Cars Service Providers

Traffic guidance, navigation, emergency services

“Google on wheels,” PAYD insurance, location-based services

Auto OEM/OES

Lower service/warranty costs

New profit pools

Architectural savings

$ 550

$420

$300

$160

Benefits per vehicle, per year Source: Cisco IBSG Automotive and Economics Practices, 2011

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Connecting the Value Chain

Extended Design and Supply Chain

Travel Experience & Location-Based Services

Distribution and Service Network

CONNECTED within the car

CONNECTED to personal devices

CONNECTED around the car

Marketing, Advertising, CRM

CONNECTED to the cloud

Source: Cisco IBSG

Automotive, 2011

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Ubiquitous Connectivity Artificial Intelligence

Context

Network

Source: Cisco IBSG Automotive 2011

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Source: Web Research, 2011

Mobility On-Demand Smart Parking

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Passenger Vehicle Stock

(Millions)

Reduce Cost to World Average of 24%

Source: EIU Data, Cisco IBSG Automotive 2010

Transportation & Communication Cost

(Percent of Personal Income)

58%

54%

50%

43%

42%

Brazil

India

Thailand

China

Mexico

17%

15%

15%

15%

14%

12%

United Kingdom

Germany

France

Italy

Japan

United States

Mature Markets

Emerging Markets

Today 2020

13%

750

1,750

59%

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IoT Infrastructure Platform

Industry Innovation: Applications and Operations

Sensors and Things

Connectivity Data

Analytics Management and Control

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Op

era

tio

n

Infr

astr

uctu

re

Veh

icle

Public Cloud

Subscription-based Services

Private (OEM) Cloud

Data Center/Virtual Servers

Enterprise Cloud

Enterprise Video, Voice, Data

V2V Communication (802.11p)

V2I/Upstream Communication (Wi-Fi, 3G/4G, 802.11p, etc.)

Serv

ices

Electrical Charging Network Charging Stations, Other Services

Mobile SP 1 Mobile SP 1 Energy Service Providers

(Smart Grid)

Mobile WiFi Offload Wi-Fi Hotspots,

802.11u, 3G/4G

Consumer Network Home/Dealership Wi-Fi Hotspots, Femtocells

Mobile SP 1 Mobile SP 1 Communications Service Providers, “Fog”

VNO Policy Enforcement, Security, Flow-based

Management, DPI, QoS, …

Software Client

DSRC Roadside

Infrastructure 802.11p (V2I)

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Solve Environmental Challenges Thrive in Smart Communities

Drive Safe and Smart Achieve Greater Energy Efficiency

Live Enriched, Healthier Lives

Redefine Work Models

CONNECTED

within the

car

CONNECTED

to personal

devices

CONNECTED

around

the car

CONNECTED

to the

cloud

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Thank you.