& cplSiteName &

ESDN: Cisco CEO Says App Economy Is 'The Future'

Dan Jones
10/2/2013
50%
50%

NEW YORK -- Ethernet & SDN Expo -- Cisco CEO John Chambers says the "next wave" in IT is coming very soon, promising massive opportunities for the networking companies that can ride it but delivering a "brutal" wipeout for those that can't.

The ebullient CEO delivered the opening keynote at New York's ever-glamorous Javits Center Wednesday morning. He gave a little glimpse of what will drive Cisco's approach to networking and acquisitions in the coming year to the IT-focused crowd at the co-located Interop and ESDN show.

"Application infrastructure is going to be the future," Chambers told the packed auditorium. Cisco is expecting 77 billion app downloads in 2014, driven by a massive growth in devices from smartphones to sensors.

Chambers Hits the Floor
Cisco CEO John Chambers did most of his Tuesday Interop & ESDN keynote in amongst the crowd.
Cisco CEO John Chambers did most of his Tuesday Interop & ESDN keynote in amongst the crowd.

Which means that mobility will be a big part of the puzzle but not the whole jigsaw, according to Chambers. "Four years ago, mobility was our Achilles heel -- not any more," he noted. He claimed that Cisco is tops in small cells, service provider WiFi, enterprise wireless LAN, and other sectors right now.

Building the infrastructure to support the "app economy" will mean more than just mobility, however, according to the CEO. It will involve bringing software-defined networking and virtualization functions out of the datacenter and into the everyday business of IT. It will involve location-aware networks that can pull a user's applications from the cloud and deliver them to whatever device they are using.

Cisco posited its demonstration at the keynote as an example of how these concepts will work in the real world: The company showed off a system where a "doctor" moved through a "hospital" with a location-sensitive network that provisioned different services for different devices in different areas of the faux-clinic.

"This is not a three-to-five year proof of concept," the CEO said towards the end of his presentation. He said that these ideas are informing what Cisco is building now and over the next couple of years. Certainly the company has been working on wireless location-aware infrastructure through this year and last. (See Cisco Takes Location Indoors.)

These ideas are also coloring what Cisco has been buying recently, Chambers explained. He said that Cisco will soon start deploying security technology it got when it bought Sourcefire for $2.7 billion in July. (See Cisco Banks on Sourcefire & Snort for Security.)

The expansive nature of this shift in IT and networking will be good for companies that can get their arms around the changes. "Make no mistake, we plan to be a disruptor," Chambers said, adding that Cisco won't enter a new market it doesn't think it can take at least a 40 percent share in.

Chambers, however, expects that many tech companies will be cut down as they build to try and get to the top of the application infrastructure market.

"Make no mistake," he told the crowd. "There's going to be a brutal consolidation in this industry. Brutal."

Want to talk about just how brutal? Or which networking CEO would win in a Mad Max Thunderdome-style SDN cage match? Well, go here for Light Reading's ESDN live chat and gab it up.

— Dan Jones, Mobile Editor, Light Reading

(4)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
DanJones
50%
50%
DanJones,
User Rank: Blogger
10/4/2013 | 11:25:01 AM
Re: App infrastructure
I'd said that is actively happening now, yes.
R Clark
50%
50%
R Clark,
User Rank: Blogger
10/3/2013 | 8:41:57 PM
Re: App infrastructure
But is this going to be another space where telcos get marginalised? Cisco wants to be a manager of parts of that app infrastructure (like indoor location). Which parts will operators get to manage?

 
DOShea
50%
50%
DOShea,
User Rank: Blogger
10/2/2013 | 4:09:40 PM
App infrastructure
Chambers' comments on application infrastructure dovetail with what some service providers are thinking. It will need to be an open and flexible infrastructure because the sevice providers are adjusting to the idea that more of the control over the delivery of apps will be turned over to customers themselves.
DanJones
50%
50%
DanJones,
User Rank: Blogger
10/2/2013 | 1:20:02 PM
17 Trillion Dollah?
That's how much Chambers claims this sea change in the industry will be worth.
Educational Resources
sponsor supplied content
Educational Resources Archive
Light Reading’s Upskill U is a FREE, interactive, online educational resource that delivers must-have education on themes that relate to the overall business transformation taking place in the communications industry.
NEXT COURSE
Friday, September 30, 1:00PM EDT
Gigabit & the Great Migration
Robert Howald, Vice President, Network Architecture, Comcast
UPCOMING COURSE SCHEDULE
Wednesday, October 5, 1:00PM EDT
Gigabit & Smart Cities
Joe Kochan, COO & Co-Founder, US Ignite
Friday, October 7, 1:00PM EDT
Gigabit & DOCSIS 3.1
Ty Pearman, Director, Access Architecture, Comcast
Wednesday, October 19, 1:00PM EDT
Securing a Virtual World
Rita Marty, Executive Director, Mobility and Cloud Security, Chief Security Office, AT&T
in association with:
From The Founder
Light Reading today starts a new voyage as part of a larger Enterprise.
Flash Poll
Live Streaming Video
Charting the CSP's Future
Six different communications service providers join to debate their visions of the future CSP, following a landmark presentation from AT&T on its massive virtualization efforts and a look back on where the telecom industry has been and where it's going from two industry veterans.
LRTV Interviews
CenturyLink: SDN/NFV Pose New Interconnection Possibilities

9|28|16   |   04:37   |   (0) comments


Network operators should develop new APIs and business processes for reselling virtual assets to each other, says CenturyLink's Bill Walker. That will enable them to build digital business portfolios that help them avoid becoming commodity transport providers.
LRTV Interviews
Level 3: Overcoming Terror of Being Supplier, Integrator & Developer

9|28|16   |     |   (0) comments


At Light Reading's NFV & Carrier SDN event in Denver, Travis Ewert of Level 3 Communications said there is terror in becoming supplier, integrator and developer, but it can be overcome and be cost effective.
LRTV Custom TV
Introducing IoT World News

9|27|16   |   01:43   |   (0) comments


Self-driving cars, medical sensors, smart cities... and refrigerators. In order to address the huge scope of IoT, KNect365 has created a unique online community that will help businesses to understand and monetize the opportunities that live within the IoT market. We look forward to welcoming you to IoT World News -- your gateway to a better connected future.
LRTV Interviews
AT&T: Re-usable Functions Next NFV Key

9|27|16   |   06:03   |   (0) comments


The next generation of NFV has to break functions down into re-usable software chunks, making everything much more cloud-like.
LRTV Interviews
Masergy on Security: Attackers Gaining Upper Hand

9|27|16   |   5:10   |   (2) comments


At Light Reading's NFV & Carrier SDN event in Denver, Ray Watson, vice president of Global Technology at Masergy, says that because of the growth in virtualization, the threat landscape is shifting in favor of the attackers. As a result, service providers need to think beyond just defending the perimeter and take a more holistic approach to security.
LRTV Interviews
Verizon Takes Next Step on Biz Virtualization Journey

9|26|16   |   4:38   |   (2) comments


At September's NFV & Carrier SDN event in Denver, Light Reading sat down with Victoria Lonker, director of Product and New Business Innovation at Verizon, to chat about where the carrier is with delivering virtualized services to business customers.
LRTV Interviews
Global Services: The $40B Face-Off

9|26|16   |   05:53   |   (1) comment


More service providers than ever before are battling it out to win a slice of what is now a $40 billion global communications services pie, explains Ovum Principal Analyst David Molony.
LRTV Documentaries
MEC Congress: The Key Takeaways

9|22|16   |   03:25   |   (3) comments


Three key takeaways from the Mobile Edge Computing (MEC) Congress in Munich, Germany.
Wagner’s Ring
Time to Shut Up About 'Dumb Pipes'

9|22|16   |     |   (12) comments


Service providers can't compete with OTT players. It just isn't in their DNA. Instead, service providers need to embrace what they're good at -- providing reliable, secure connectivity.
Wagner’s Ring
Keeping Your Tech Career Going After 50

9|21|16   |     |   (13) comments


How do you keep your career moving forward when you're past the half-century mark?
LRTV Interviews
Peering Into the Digital Future

9|20|16   |   04:25   |   (0) comments


Nick Thomas, practice leader of digital media at Ovum, talks about how digital transformation in the technology, media and telecom sectors will enable the development of a new range of applications and services for enterprises and consumers and how the upcoming Digital Futures event in London will examine ...
LRTV Custom TV
Napatech Tackles NFV's Major Challenge

9|7|16   |   08:42   |   (0) comments


One of the main challenges for network operators introducing NFV is to combine performance and flexibility in a cost-effective way, but there is a solution, explains Napatech's Dan Joe Barry.
Upcoming Live Events
November 3, 2016, The Montcalm Marble Arch, London
November 30, 2016, The Westin Times Square, New York City
December 1, 2016, The Westin Times Square, New York, NY
December 6-8, 2016, The Westin Excelsior, Rome
May 16-17, 2017, Austin Convention Center, Austin, TX
All Upcoming Live Events
Infographics
Hot Topics
Verizon CFO: Eat Our (Fixed) 5G Dust!
Dan Jones, Mobile Editor, 9/22/2016
WiCipedia: The Women Helping Women Edition
Eryn Leavens, Special Features & Copy Editor, 9/23/2016
Eurobites: Telefónica Taps Juniper for Network Security
Paul Rainford, Assistant Editor, Europe, 9/26/2016
Open Source Getting on My Nerves
Carol Wilson, Editor-at-large, 9/26/2016
Google, Facebook Gaining Network Equipment Clout
Patrick Donegan, Chief Analyst, Heavy Reading, 9/26/2016
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
Light Reading CEO Steve Saunders and UXP Systems CEO Gemini Waghmare discuss the strategic importance of digital identity for operators in the midst of transformation.
Join us for an in-depth interview between Steve Saunders of Light Reading and Alexis Black Bjorlin of Intel as they discuss the release of the company's Silicon Photonics platform, its performance, long-term prospects, customer expectations and much more.
Animals with Phones
There's Nothing Like Missing a Full Minute of Pokémon Go Click Here
Live Digital Audio

A vital part of increasing the number of women in comms is transforming the ways companies can support and empower women. While progressive company policies that support both men and women in achieving work-life balance are a step in the right direction, creating a company culture that supports those policies can at times be more challenging.

During this show, we'll talk to Lynn Comp, Senior Director of Industry and Sales Enabling (ISE) in the Network Platforms Group at Intel, about why those challenges exist and how companies can overcome them. She'll provide insight into how Intel has worked to create a culture that supports work-life balance, and provide steps and guidance for other companies wishing to do the same. We will also leave plenty of time to get your questions answered live on the air.