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Internet of Everything is the biggest thing on our horizon: Cisco (Part I)

Sathya Mithra Ashok | Dec. 10, 2013
In the first part of an interview, Geoff Lawrie, NZ country manager at Cisco Systems, talks to Reseller News NZ on how the Internet of Things is the next big thing for the company in New Zealand.

Q: Where will the next phase of growth come from for Cisco?
GL: The networking industry is relatively mature in NZ. Most people who want a network have got a network. The interesting thing is there is still significant investments going on in terms of quality and capacity in terms of those networks.

So most of our market is not people putting in new networks, although there is a little bit of that. But there is a lot of investment going into capacity in particular. And the underlying driver for that is video. Every organisation, particularly large scale organisations in enterprises and governments, are seeing an escalating use of video across their networks.

That is driven partly by the social media elements a lot of which is rich media based. But now organisations are finding that executive communications, training delivery and effective collaboration all of that requires a high definition video element.

Sending text messages or voice data is a very low impact transmission. When you get to shopping around or wanting to have very low latency, like zero delay, or high definition video - that is when you really need a high quality well configured network. So organisations are investing a lot in getting to that level.

Our business here is split. About 55 per cent comes from what you would call core networking, and across that the vast majority is upgrades to bring either greater capacity — particularly the main transmission networks we are moving from 10G to 40G to 100G on those networks — so there is quite a bit of investment in supporting that.

They are also wanting to have higher quality in their networks to support video. So these are the two drivers of the networking side of the business.

Telcos and ISPs are about 30 per cent of our business here. The significant majority is enterprise and business consumers.

The public sector went through a hiatus of investment around the tail-end of the global financial crisis. One of the consequences of that was that many initiatives and projects inside the government got put on delay, slowed down or cancelled altogether, around the 2010 and 2011 period.

Around 2012 it came back quite strongly, on not all the projects but a lot of them. There are key areas in government where investment in that kind of capacity is fundamental to the productivity equation. And good examples are health, education, the justice sector in particular are investing a lot in networks to drive video in core processes.

The remaining 45 per cent - the bigger component in that is collaboration technologies. So that is voice and video systems connecting organisations. We are the largest supplier in the NZ market of that capability particularly in the enterprise level — that is IP-based voice and high definition video collaboration systems.

 

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