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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.

The remaining component is about new business for us, which is around datacentre compute and switching. We have been in the high capacity datacentre switching between compute and storage for a long time. About three years ago we entered the blade switching market with a relatively revolutionary technology.

When we launched it, it was into a mature market too. The compute market was dominated by HP and IBM for a long time. And you would be hard pushed to find anyone particularly in HP and IBM who ever gave us any chance of being successful in that market.

But we are now number one blade shipper in the US. We are number two around the world and quickly getting to number one. It has been a phenomenal successful piece of the business for us. The investment that is going in cloud and cloud—enablement is helping to drive that. So we are actually gaining a share and growing that business in an overall declining marketplace.

Q: Do you see those ratios changing in next couple of years?
GL: Each of those markets have different dynamics to them. What's happening in the core networking space is that people are investing in capacity but a bit like PC model. People are spending the same amount of money and getting twice as much every 18 months. People are investing a lot, and it is going up from 10G to 100G and getting much more sophisticated, they are not spending much more money. So revenues in that marketplace is relatively flat, and going down. In NZ we grew our share of that market last year. But that was within a static market. Within that, in the networking space, there are parts of the market that are growing significantly and mobility is the big part of networking that is growing very strongly.

And that is in two senses — one is the service providers that are investing in their mobile capacity, because of their smartphones and video on mobile networks and that kind of stuff. Just about every enterprise and government organisation in NZ has a wifi strategy. Five years ago it was all about fixed line connections and plug-ins. Now every enterprise we are dealing with has a Wi-Fi strategy of some description and in some cases Wi-Fi is the major area of investment.

Wi-Fi is a huge growth area. The marketplace is seeing 35 to 37 per cent total revenue growth. That is extraordinary. And security would be the other element. There is increasing spend in the security side of things.

Collaboration overall as a marketplace is growing slightly. But voice communications is going out. Fortunately for us we have got a really strong video portfolio. So we have got — we have been able to ride that wave.

 

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