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
It's clear to me that the communications industry is divided into two types of people, and only one is living in the real world.
LRTV Documentaries
Optical Is Hot in 2015

1|23|15   |   01:56   |   (2) comments


Optical comms technology underpins the whole communications sector and there are some really hot trends set for 2015.
LRTV Custom TV
Policy Control in the Fast Lane

1|22|15   |   2:57   |   (0) comments


What's making policy control strategic in 2015 and beyond? Amdocs talks with Graham Finnie from Heavy Reading about some of the key factors driving change in the data services landscape. Find out what his policy management research reveals about the road ahead for policy control.
LRTV Documentaries
Highlights From the 2020 Vision Executive Summit

1|21|15   |   4:33   |   (2) comments


In December 2014, Light Reading brought together telecom executives in Reykjavik, Iceland to discuss their vision for high-capacity networks through the end of the decade. The intimate, interactive meeting was set against the backdrop of Iceland's spectacular natural beauty. As one of the event's founding sponsors, Cisco's Doug Webster shared his company's ...
LRTV Huawei Video Resource Center
Huawei Pay-TV Partner Harmonic, Helping Carriers Accelerate 4K Video Deployment with Huawei

1|20|15   |   5:42   |   (1) comment


At IBC, Peter Alexander, Senior Vice President & CMO at Harmonic, speaks about the growing interest in pay-TV service and its branching into multiple devices.
LRTV Huawei Video Resource Center
Sony Marketing Director Olivier Bovis Discusses the Outlook for 4K and Cooperation With Huawei at IBC 2014

1|20|15   |   6:50   |   (0) comments


At IBC, Olivier Bovis, Marketing Director of Sony, speaks about the coming of the 4K era.
LRTV Huawei Video Resource Center
Huawei Pay-TV Partner Envivio, Helping Carriers Accelerate 4K Video Deployment

1|20|15   |   2:57   |   (0) comments


At IBC, Olivier Bovis, Marketing Director of Sony, speaks about the coming of the 4K era.
LRTV Huawei Video Resource Center
Pay-TV's Networked Future

1|20|15   |   6:29   |   (0) comments


At IBC, Jeff Heynen, Principal Analyst at Infonetics, speaks about the future of the pay-TV industry and its transition.
LRTV Huawei Video Resource Center
Jeff Heynen: Distributed Access Will Help MSOs Compete in the Future

1|20|15   |   2:26   |   (0) comments


At IBC, Jeff Heynen, Principal Analyst at Infonetics, speaks about moving to distributed access and the future trend of cable business.
LRTV Interviews
Cisco Talks Transformation

1|20|15   |   13:02   |   (0) comments


In December 2014, Steve Saunders sat down with Cisco VP of Products & Solutions Marketing Doug Webster at Light Reading's 2020 Vision executive summit in Reykjavik, Iceland. They spoke about Cisco's approach to network virtualization as well as how service providers can begin to monetize high-capacity networks through the end of the decade.
LRTV Interviews
Bob Wilson, Arsenal Legend: The Light Reading Interview

1|16|15   |   35:36   |   (3) comments


Arsenal goalkeeping legend Bob Wilson was Light Reading's guest interviewee at the 2020 Vision Executive Summit in December. See what the former soccer star and sports broadcaster had to say when he took to the stage in Iceland.
LRTV Custom TV
What MEF Third Network Initiative Means for SDN & NFV

1|14|15   |   6:13   |   (0) comments


Vitesse Semiconductor CTO Martin Nuss discusses the importance of the MEF Third Network initiative and why it's good news for SDN/NFV industry initiatives.
LRTV Huawei Video Resource Center
Frank Miller: Distributed Solutions are the Best Build for the Future - Part II

1|9|15   |   2:46   |   (0) comments


At SCTE, Frank Miller, Global CTO of MSO at Huawei, speaks about Cable 2.0 and its innovative future.
Upcoming Live Events
February 5, 2015, Washington, DC
February 19, 2015, The Fairmont San Jose, San Jose, CA
March 17, 2015, The Cable Center, Denver, CO
April 14, 2015, The Westin Times Square, New York City, NY
May 12, 2015, Grand Hyatt, Denver, CO
May 13-14, 2015, The Westin Peachtree, Atlanta, GA
June 9-10, 2015, Chicago, IL
September 9-10, 2015, The Westin Galleria Dallas, Dallas, TX
September 29-30, 2015, The Westin Grand Müchen, Munich, Germany
November 11-12, 2015, The Westin Peachtree Plaza, Atlanta, GA
December 1, 2015, The Westin Times Square, New York City
December 2-3, 2015, The Westin Times Square, New York City
Infographics
Hot Topics
Cuomo Unveils Broadband Aid Program
Alan Breznick, Cable/Video Practice Leader, 1/19/2015
FiOS Picks Up Pace Again
Alan Breznick, Cable/Video Practice Leader, 1/22/2015
BlackBerry Wants Net Neutrality Protection -- That's Just Sad
Mitch Wagner, West Coast Bureau Chief, Light Reading, 1/22/2015
Indiana Carrier Takes Fiber to the Farm
Jason Meyers, Senior Editor, Gigabit Cities/IoT, 1/22/2015
Verizon Ready for Google MVNO Challenge
Dan Jones, Mobile Editor, 1/22/2015
Like Us on Facebook
Twitter Feed
Webinar Archive