Cisco Keynote – RealWear Summit

– How’s everybody doing out there? (crowd murmers) I’m not sure, but did I
hear Andy pre-announce that RealWear 3.0 involves
some kind of port in my neck? Is that what he was saying? It’s comin’. It’s comin’, it’s gonna be there. Hey, I work in Cisco’s
Collaboration business unit. We’re a $5 billion dollar piece of Cisco that involves building, not
only all of the endpoints and video devices that go into
rooms and other locations, but all of the things that
we do on mobile devices, and iPads, iOS, Android-type devices, around our Webex platform. And in particular, I head up
Vertical Industry Solutions. And, what we do as a team,
is look at what collaboration should be inside of these
different vertical industries. What’s the context for
collaborating in a hospital? Right? It’s different. If you’re just going to
a meeting in a hospital, yeah, it’s the same thing,
it’s a horizontal application. But we look, in particular,
at how it gets integrated into the process. And how it helps create transformation. That’s what we’re gonna talk about a little bit this morning. Okay? What is collaboration look
like inside of education? How do we build the
classroom of the future? What is collaboration look
like in manufacturing? And, when we talk about
transformation, innovation, disruption, I think we all
know what that means, right? I don’t have to ask, “How many
people take taxis anymore?” How did you come? If you gotta get a car,
what do you do, right? It’s very different how we do that today. How do you get your music? You still going into
a store, buying vinyl? No. We’ve had disruption in all
of these industries, right? It goes on all the time. Prior to Cisco, I worked
for a technology company called iRobot. I gotta share a funny story with you. The CEO’s talking with me one morning, and he starts this company as a very young guy out of college. MIT grad, super, super smart,
one of the smartest people I ever met in my whole life. And he starts this company to build robots basically to explore space. Right? He wants to send them out in environments that are too dangerous to send man. Right? So we send robots to do
these kinds of things, or investigate inside of
craters and things like that. So the business goes on, he’s trying different business models, and he’s building stuff for NASA, and he’s building stuff
to explore the oceans. And his board is saying,
you know, this growth doesn’t look so good. You gotta find some growth
industries for this stuff. And they start giving him different ideas, how to change, how to transform
the business model, right? And they light on this
one they push to him, about building vacuum cleaners. And he’s offended, right? “Vacuum cleaners? “I’m not gonna build
vacuum cleaners,” right? So fast-forward a few years later, he’s sitting at his
kitchen table with his son, who’s just a couple years old, so still sitting in a high chair, right? With the food all right there. And the next thing he
knows his son is sweeping all the Froot Loops and
stuff onto the floor. And he’s horrified, and he jumps up, and goes over to his son, and he doesn’t know what to do. And his son looks at him, he says, “It’s OK, Daddy, the robot’ll get it.” So he knows right then
everything’s gonna change for him. Right? The minute that we accept
this kind of transformation, these tools that are so different, I don’t have to do these
menial tasks myself anymore. Right? I don’t have to be a part of that, the robot’s gonna take care of it. He started thinking about it, and that Roomba business took off. And guess what? Today, Colin Angle, that CEO, is the number one vacuum
cleaner salesman on the planet. And he laughs all the
way to the bank, right? So this is coming in to every industry, including manufacturing. But I’m not gonna talk about what you do with this disruption, what’s happening now, I wanna talk about how you enable it. How do we enable this
movement taking place, right? How do we transform our businesses, okay? And there are two important
things that we need. We need to have really
good partners to do that, and we need to have some
kind of digital plan or a strategy. Right? And that’s where we come in. So, a little bit about the
company as a background. And I won’t give you the whole thing. Most people know who Cisco is. But a couple of key facts that I think you’d find interesting. We have a large number
of partners, 60,000, and that includes not only
our reseller partners, but our technology partners. We don’t do this stuff on our own. We look for partners. In fact, we have some
in this room right now, that we’re working with,
together with RealWear, for stuff to deploy on that platform. And when you take a look at our partners and their sellers, I mean
we have 18,000 sellers at Cisco, add in our
partners we’re somewhere in the order to 350,000
sellers around the planet. And they’re not just
sellers where they’re trying to make a quota, and move product to you, we have a good number
of these guys trained in very specific industries,
so they’re experts. So they can help you
figure out your strategy for digital manufacturing, or whichever industry you happen to be in. Right? We also end up taking a lot of these close technology
partners we have, and it becomes so integral
to our business at Cisco, that we acquire them. So we’ve done hundreds of
successful acquisitions. And that comes through
our partnering strategy. We don’t build everything ourselves. We leverage ecosystems. We create them and we
leverage those partnerships, to get the things done, to deliver the solutions
our customers need. Right? We’re a global company,
so I saw the chart, I mean, RealWear’s growing pretty fast, you saw it out there. Wherever you do business,
we’re there to support you. We invent a lot of stuff. Right? So, when it comes to
talking about disruption, and innovation, we’re a
very innovative company. And we have a number of
programs inside of Cisco, that drive that innovation engine for us. Very special ways we make
sure that that’s happening. And what I want to point out to you is that we try a lot of things, we try a lot of businesses, and if we’re not successful
we quickly spin out of it. We look for those things that matter. So in the places we play right now, when you look at our portfolio, we’re either number one or
number two in the industry. And, when you start thinking
about transformation from a manufacturing standpoint, those things that we have to do, there are a couple of key
things that stand out. We’ve gotta build networks
that connect things. That’s what we’re all about at Cisco. Connecting things. Right? Andy talked about it. And this is everything. It’s connecting your large assets, it’s connecting back
your different offices, and, most importantly,
it’s connecting the people. We do it in a wired
way, we do it wirelessly to build this stuff. Even outside 5G, super, super
critical focus area for Cisco. Right? We also have security,
everything’s gotta be done in a very secure fashion. And then we have collaboration. The key to all of this. How do we work together to
make great things happen? So really important parts of our business. So, as I said, I’m
responsibe for figuring out how collaboration impacts
all of these industries. So, when it comes to disruption, where is that most likely to occur? Where are we seeing those
trends today, right? And, guess what? It turns out, manufacturing’s
number one on the list of places ripe for disruption. So I don’t know how many of you are in the manufacturing space, but we’ve got everything from how things are manufactured today to the processes and stuff we
go through to get things built that we need to be delivered. So this area became really,
really important for Cisco. And it became number one on my list, of those verticals that I focus on. How do we take collaboration
and help drive transformation in the manufacturing industry to keep our customers, our
great customers in this space, from being disrupted? And that’s what we work on. So what do we look like in manufacturing? One of the biggest areas of
revenue for Cisco, right? We do some $6 billion dollars
plus today, in that area. Over 100,000 customers. So this is a focus area where we’re helping to
drive transformation, because things are changing
at a rapid, rapid pace. Today, four out of five
customers in this space, believe that some form of disruption is going to threaten their business in the next couple of years. And it keeps them up at night. So you’re either gonna transform, you’re gonna disrupt yourself, or you’re gonna be disrupted. There’s a number of companies out there that show this is really happening. All this, “Nobody’s gonna disrupt us,” six months later, they’re out of business. Right? Three things we look at with customers in helping to make this
transformative journey. How do I take and become more efficient when I rethink the digital
factory of the future? When I put this together,
how do I do it better? How do I connect things in a way that gives everybody
visibility and access to data? What’s going on in my production lines? You’ve gotta be connected. Everything working together. Analyzed in a way that makes that visible. How do I innovate? How do I do things better? How do I do things differently? And how do I make it secure? Super important, how we make it secure. In fact, security is so important, it’s the number one thing
holding back manufacturing companies today, from really
innovating and going digital. Those that are refusing
to connect their factories are saying, “I believe my
IP will be in jeopardy,” “people will hack in to me. “They’ll steal plans for my processes, “procedures, my machines,
how they’re working.” It is a big area of concern. And we can help them fix
and reduce that risk. So, we do everything with an architecture. When we look at manufacturing, if you’re gonna build a digital factory, this is sort of the high-level
blueprint for what we do. Right? We get everything connected. Wireline, wireless,
networking capabilities, security, our compute. What compute is local, what is cloud? What do be back-haul somewhere else? All of those things have
to be tied together. You have to have a foundation to build a digital strategy on. We help put that together. Then we enable the delivery of the data. Who needs to get the data at what time? And you can begin plugging in
super important applications, on top of that foundation. And one of those happens to
be factory collaboration. What do we do there? And by this I mean, this
is our expert on-demand. Right? Remote experts. How do we bring help in, automatically, in a factory setting, and make that work? How do we tie in machines
to make them talk? We have a whole strategy
around just collaboration in the factory. Not only how we bring
people into the factory, but how we connect and have
machines talking to each other. How do they share data? How do we provide automatic signaling? I mean, a machine can sense
when it goes out of range on something, the temperature’s too high, the pressure’s too low. So what? If we can’t act on it immediately, if we can’t do something about it, it’s gonna blow. There goes a million dollars a day. Now if I can send a message to somebody, before I hit that threshold, right? Somebody’s alerted that can respond, they can be there, “Oh no. “I don’t know how to fix it.” Guess what? Susan does. I can connect with her, and get it done. So we enable a lot of
important things to happen. We can feed data into our
systems automatically. Okay? Alerting people. And, down here where we
talk about mobile clients, this is a big place where
our strategic relationship, globally, with RealWear
is super important to us. And we take RealWear, I’ll
tell you how important the partnership is with RealWear to us. If you look at our other two
partners in this category, one of them is Google,
and one of them is Apple. Right? Pretty big companies. We have a lot of activities
going on with them. And then we have RealWear. And they enable, even
on an Android platform, capabilities that nobody else can today. So when you talk about other technologies from Microsoft and stuff, forget about it. HMT is where it’s at for us and we’re making a big
investment in this partnership, because they’re an important
way that we’re able to share this information for people that can really act on it, today. Okay? So, the key elements for us,
this digital architecture if you will, that we
enable being put together, has a couple of important
capabilities we deliver as our cornerstones, right? We’re allowing you to automate things. Automate the sharing of this information because everything’s connected, all my assets are
connected within the plant. The plants themselves are connected. They’re connected to my back office. They’re connected to my workers. We’re analyzing all this stuff, we can make important
decisions based on it. It’s secure, I trust to
know that it’s staying within my company. And we’re able to collaborate,
and get things taken care of, and innovate, and accelerate
how we put this together. So, I would present
for you now, basically, our resume as a partner. Right? Partnership’s important. We can build all this digital foundation but we don’t do it alone. We do it with partners like yours. We have the networking elements in place, and a trusted brand, which
shows we know what we’re doing when we connect things. Both wired and wireless. Right? We have the ability to secure it. I can’t say enough about the security. It’s super important,
manufacturers know that. Our collaboration is grown to the point where we have over 120
million people a month collaborating on the Webex platform. And it’s not just about
point-to-point video calls, it’s team calls and how
we bring them together. It’s how we exchange
information in a message bus. All of those things enabled by our Webex collaboration platform. Okay? We do business where you do business. All around the world, seven
by 24, we’re there for you. Okay? And I would say to you,
this is the decision that you have to make as a customer: Will you transform? Will you disrupt? Or will you be disrupted? If you choose the former, I humbly request your consideration of Cisco as a partner in your digital journey of transformation. Thank you very much for
your time this morning. Thank you very much to RealWear. (applause)