Light Reading
Cisco CEO John Chambers opens up Interop & ESDN show in NYC promising the 'next wave' in networking will be driven by the 'app economy.'

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
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.
Flash Poll
From The Founder
Is your network built on 'The Old IP,' or are you part of 'The New IP' revolution?
LRTV Huawei Video Resource Center
Innovating Access Technology With G.fast

10|1|14   |   3.42   |   (0) comments


Exploring the potential of G.fast technology from the point of view of the Broadband Forum, Huawei – and an end-user.
LRTV Documentaries
A Cultural Shift for an OTT World

9|26|14   |   01:41   |   (3) comments


Telcos need to embrace a new approach to partnerships if they are to generate extra revenues quickly and give customers what they want.
LRTV Documentaries
New Skills Needed as Telecom, IT Collide

9|26|14   |   4:07   |   (1) comment


As telecom and IT collide, new technologies are emerging, new skills are needed and new opportunities for women are arising.
UBB Forum News
Do IP Networks Need An Overhaul?

9|25|14   |   02:01   |   (0) comments


As traffic levels ramp, do IP networks need new technologies and topologies?
LRTV Documentaries
Sprint Wields Its Influence in the Valley

9|25|14   |   3:09   |   (11) comments


Anne-Louise Kardas, Sprint's connection to startups in the Valley, explains how telcos can be innovative and find new opportunities with partners.
LRTV Documentaries
SDN, NFV & The Future of XO's Network

9|25|14   |   3:47   |   (1) comment


XO Communications COO Don MacNeil explains how cloud, SDN and NFV are altering its network requirements as well as changing data centers of the future.
UBB Forum News
The OTT Conundrum

9|24|14   |   01:39   |   (0) comments


What is holding back prosperous partnerships between telcos and the OTT players?
LRTV Documentaries
Putting Broadband to Work

9|24|14   |   01:26   |   (0) comments


High-speed broadband network rollout is key to telco strategies, but it's what happens after the network is built that counts.
Light Reedy
Light Reading's Women in Telecom Recap

9|24|14   |   0:55   |   (4) comments


Our first Women in Telecom breakfast was a huge success, and we hope you'll join us in London for the next event on November 6.
UBB Forum News
Monetizing Ultra-Broadband

9|24|14   |   01:43   |   (2) comments


Ultra-broadband networks need to be built, with fiber-to-the-premises the ultimate goal, but they need to be monetized, too.
LRTV Huawei Video Resource Center
Sales Director of INIT on Plug & Play Switch Devices

9|19|14   |   3:21   |   (0) comments


INIT Italy uses both the Huawei S5700 and S7700 series switches for the campus LAN environment. Sales Director Andrea Curti says their company chose these Huawei devices over others because of their performance, flexible scalability and plug-and-play features.
LRTV Huawei Video Resource Center
Saudi Arabia Upgrades Vocational Training System

9|19|14   |   3:31   |   (0) comments


The Technical and Vocational Training Corporation (TVTC) has 100,000 students, 150 government-owned institutions and oversees 1000 private institutes. The CIO of TVTC explains that Huawei devices have allowed them to manage multiple datacenters using just one software program, scientifically tracking the progress of students and teachers, saving them millions.
Upcoming Live Events
October 29, 2014, New York City
November 6, 2014, Santa Clara
November 11, 2014, Atlanta, GA
December 2, 2014, New York City
December 3, 2014, New York City
December 9-10, 2014, Reykjavik, Iceland
June 9-10, 2015, Chicago, IL
Infographics
Half of the world's population will be connected to the Internet by 2017, but not just by smartphones and desktops.
Hot Topics
Facebook Pokes Around LTE Direct
Sarah Reedy, Senior Editor, 9/25/2014
Is Redbox Instant Shutting Down?
Mari Silbey, Independent Technology Editor, 9/30/2014
Sprint Wields Its Influence in the Valley
Sarah Reedy, Senior Editor, 9/25/2014
US Ignite Cultivates Gigabit Apps
Jason Meyers, Senior Editor, Utility Communications/IoT, 9/25/2014
SoftBank Eyes a DreamWorks Buy – Report
Sarah Reedy, Senior Editor, 9/29/2014
Like Us on Facebook
Twitter Feed