Cisco’s Traffic Forecast: Growing Opportunity for IoT Enterprises



Internet of Things accompanies cloud

Cisco Systems (CSCO) has released a new forecast on Internet traffic. It’s predicted that the IoT (Internet of Things) will generate 500 zettabytes of traffic by 2019. The next wave of the Internet gives rise to a proliferating number of devices to interact with each other. An estimated 0.3 million devices connect to the Internet every hour, translating to 50 million things a week. The rate of connectivity has continued to increase over the years. Cisco has estimated that approximately 50 billion things and five billion people will be connected by 2020.

Article continues below advertisement

It’s not necessary to have every device on board and connected to the Internet at all times. Devices can separate themselves by staying connected the cloud. For instance, devices such as thermostats, smoke detectors, and smartphones are all connected through cloud technology and exchange information among themselves. Moreover, connectivity is no longer restricted to home appliances. It’s broadened to include connected cars such as Tesla Motors’, and connected smart cities.

Data usage growing at tremendous rate

Connected things are more valuable than unconnected things. A basic thermostat and door lock would normally be priced within a range of $15 to $25, but when we enable these devices to interact, manage, and analyze, they can be sold for $200 to $300. Applications, data, and information are exploding over the network. According to Cisco, companies could leverage this data to transform their business process, and potentially gain $19 trillion in profits by 2020.

Applications such as Google Drive, Dropbox, and Microsoft OneDrive are constantly interacting with the Internet to synchronize files across tablets, personal computers, and smartphones. Cisco’s traffic report predicts that this will give rise to an average of 1.6 gigabytes of data usage by 2019, compared with the current usage of under 1 gigabyte. The increase in data usage is primarily due to mobile devices and wearables. Moreover, organizations are embracing the cloud to move their business process from on-premises to off-premises. This migration will quadruple the usage of data to 8.6 zettabytes of traffic by the end of 2019. In turn, the number of workloads running on any given server in the cloud data center will increase from an average of 5.1 in 2014 to 8.4 by 2020.

The PowerShares QQQ Trust, Series 1 ETF (QQQ) is a portfolio of 107 stocks. The top four stocks, Apple (AAPL), Microsoft (MSFT), Amazon (AMZN), and Google (GOOG), constitute 13.0%, 7.4%, 5.1%, and 4.5%, respectively.


More From Market Realist