Welcome to the Introduction to IoT course.

As more things come online, we develop

processes to harness the vast amounts of data being generated by all these connected
things. 
The goal of this course is to introduce you to concepts and challenges of the digital
economy.
These online course materials will assist you in developing the skills necessary to do
the following:  

 Explain the impact of IoT.

 Explain the interactions between people, process, data, and things that form the
Internet of Everything (IoE).
 Configure networked devices and applications to support a given IoT
implementation.
 Explain the benefits and challenges of IoT.
 Explain modeling and prototyping in IoT.

To check your understanding of the concepts explained in this course, there is a brief
quiz at the end of each chapter. At the end of the course there is a course feedback
survey and an end-of-course assessment. When both are completed, you can obtain a
certificate of completion. 
All quizzes and assessments can be accessed through the Modules section of the
course. 
Click the Next button to go to the resources and support page.

Why Change the Name?

Welcome! We have changed the name of this course from Introduction to the Internet of Everything to Introduction to
the IoT. (IoT stands for the Internet of Things.)

We have changed the name to more closely align with what have become the generally accepted terms used to
describe this industry. Our goal is to ensure clarity when discussing the new opportunities presented by the Internet
of Things.

This course still contains all of the previous content about the Internet of Everything because it is still applicable to
your understanding of the way the IT industry is changing. For example, most of this chapter and Chapter 2 are
focused on the Internet of Everything.

Chapters 3, 4, and 5 are primarily focused on the IoT, although the IoE is still mentioned. We have added content
about Cisco’s IoT System, as well as more information and labs to help you practice programming and prototyping.

Let’s get started!

Here’s to Humanity

The Internet has evolved in ways that we could never have imagined. In the beginning, advancements occurred
slowly. Today, innovation and communication are happening at a remarkable rate.

From its humble beginning as the Advanced Research Projects Agency Network (ARPANET) in 1969, when it
interconnected a few sites, it is now predicted that the Internet will interconnect 50 billion things by 2020. The Internet
now provides global connections that make web surfing, social media, and smart mobile devices possible.

Click Play in the figure to watch how the Internet emerged over the last 25 years and see a glimpse into the future!

The Internet: The Place to Go

Normally, when people use the term Internet, they are not referring to the physical connections in the real world.
Rather, they tend to think of it as a formless collection of connections. It is the “place” people go to find or share
information. It is the 21st century library, video store, and personal photo album.

Internet Maps

In actuality, the Internet is essentially a network of networks.

Each of us connects to the Internet using a physical cable or through wireless media. Underneath this network of
networks lies a very real backbone of connections that bring the world to our personal computing devices.

The figure is an oversimplified map of global Internet traffic; however, it depicts how countries and continents are
connected. Click this telegeography map link that depicts the location of submarine cables.

After you have opened the telegeography map, click any cable on the map to highlight that cable and see the points
at which it connects with land. (Alternatively, you can select any cable from the list to the right of the map.)

Click any city on the map to see a list of all the cables that connect to that city.

A great amount of engineering, effort, and money goes into the planning and deployment of each of these cables.

The Circle Story

In a very short time, the Internet has dramatically changed how we work, live, play, and learn. Yet, we have barely
scratched the surface. Using existing and new technologies, we are connecting the physical world to the Internet. It is
by connecting the unconnected that we transition from the Internet to the Internet of Things.

Click play to see Cisco’s vision of how the Internet of Everything could impact your everyday life.
Organizations Adapt or Lose Competitive Edge

Organizations must be agile and adjust to the changing trends in technology. Organizations can use this technology
to streamline operational cost through the use of collaboration and automation. In addition, businesses provide more
relevant offerings using real-time data gathered from customers.

Organizations must also modify the way they advertise and sell products to customers. Technology is changing
individual behaviors, such as how they learn about products, how they compare competitors, and even their
purchasing patterns. For this reason, organizations must be able to customize their advertisements and special
promotions toward certain customers and cut costs with targeted advertising. Additionally, customers, as a group, can
affect the bottom line of the company by expressing their comments online. Organizations must be able to react
quickly to counter any negative feedback entered by customers or employees.

These new technologies and trends can lead to tremendous success for some organizations. For other organizations,
the failure to adapt to the new trends will likely result in the loss of their competitive edge. They will fail to meet the
needs and expectations of the customers they serve. Consider, for example, how Internet streaming is affecting the
business operations and profit margins of movie rental stores. This is also happening with music and printed media.

The IoT forces industries to adapt or settle for diminishing returns.

Governments and Technology

Governments are not immune to the change caused by rapid information exchange through technology. Officials can
respond quickly to emergencies through real-time data. Citizens can connect through social media and gather
support for change.

Barcelona A Smart City

Governments can embrace this technological change, and benefit from it, by incorporating technology into the
operation of a city. In 2011, the city council in Barcelona, Spain launched the “Barcelona as a People City” project.
This project uses technical innovations to foster economic growth and the welfare of its citizens.

Click Play to view how Barcelona embraces the IoE to improve the life of its citizens, generate new business
opportunities, and reduce operating expenses.

Hyper-Aware, Predictive, Agile

What does it mean to be IoE-ready? IoE-ready is characterized by three critical attributes:

 Hyper-Awareness - Data from a broad range of sources can be captured in real time.

 Ability to Predict - New types of data analysis tools allow an organization to forecast future trends and
behaviors.

 Agility - Increasingly accurate predictions allow organizations to be more responsive and flexible to
emerging marketplace trends and threats.
Combining these three attributes allows organizations to better create, communicate, and deliver their offerings.

IoT and Industries

For organizations to realize the potential value of the IoE, they must focus on the IoE-driven capabilities that most
benefit their organization. This can vary across industries.

Figures 1 to 3 display some of the potential uses of the IoE across multiple industries, including manufacturing,
energy firms, and retail organizations.

Maximizing IoE Value

For organizations to join the IoE economy, and maximize the value of their IoE implementation, organizations must
consider:

 Investing in a high-quality technology infrastructure and tools - A secure and reliable network
infrastructure is required to support the IoE.

 Adopting and following inclusive practices- An inclusive environment is one in which the employees of
that environment feel as though they are part of the change. It is an open atmosphere where individuals feel
that they are included.

 Developing effective information-management practices - Management must be able to embrace and

promote change. Information sharing and management must be supported, and data extracting techniques
must be developed so that the right information is provided at the right time, to the right people and things.

Organizations are able to achieve a significant competitive advantage by adapting their business processes through
the use of IoE technologies.
Networks are the Foundation

Fifty billion things provide trillions of gigabytes of data. How can they work together to enhance our decision-making
and interactions to improve our lives and our businesses? Enabling these connections are the networks that we use
daily. These networks provide the foundation for the Internet and, ultimately, the IoE.

The methods that we use to communicate continue to evolve. Whereas we were once limited to face-to-face
interactions, breakthroughs in technology have significantly extended the reach of our communications. From cave
paintings, to the printing press, to radio, to television, and to telepresence, each new development has enhanced our
ability to communicate with others.

Networks of Many Sizes

Networks form the foundation of the IoE. Networks come in all sizes. They can range from simple networks consisting
of two computers to networks connecting millions of devices.

Simple networks in homes enable the sharing of resources, such as printers, documents, pictures, and music,
between a few local computers.

In businesses and large organizations, networks can provide products and services to customers through their
connection to the Internet. Networks can also be used on an even broader scale to provide consolidation, storage,
and access to information on network servers. Networks allow for email, instant messaging, and collaboration among
employees. In addition, the network enables connectivity to new places, giving machines more value in industrial
environments.
The Internet is the largest network in existence. In fact, the term Internet means a “network of networks.” The Internet
is literally a collection of interconnected private and public networks. Businesses, small office networks, and even
home networks usually share a connection to the Internet.

Click each plus sign (+) in the figure to learn more about each network.

Components of the Network

The path that a message takes from source to destination can be as simple as a single cable connecting one
computer to another, or as complex as a network that literally spans the globe. This network infrastructure is the
platform that supports the network. It provides the stable and reliable channel over which our communications can
occur.

Click each button in the figure to highlight the corresponding network components.

Devices and media are the physical elements, or hardware, of the network. Hardware is often the visible components
of the network platform such as a laptop, PC, switch, router, wireless access point, or the cabling used to connect the
devices. Occasionally, some components may not be so visible. In the case of wireless media, messages are
transmitted through the air using invisible radio frequency or infrared waves.

Network components are used to provide services and processes. These are the communication programs, called
software, that run on the networked devices. A network service provides information in response to a request.
Services include many of the common network applications people use every day, like email hosting services and
web hosting services. Processes provide the functionality that directs and moves the messages through the network.
Processes are less obvious to us but are critical to the operation of networks.
End Devices

The network devices that people are most familiar with are called end devices. All computers connected to a network
that participate directly in network communication are classified as hosts. These devices form the interface between
users and the underlying communication network.

Some examples of end devices are:

 Computers (workstations, laptops, file servers, and web servers)

 Network printers

 VoIP phones

 TelePresence endpoints

 Security cameras

 Mobile handheld devices (smartphones, tablets, PDAs, and wireless debit/credit card readers and barcode
scanners)

 Sensors such as thermometers, weight scales, and other devices that will be connected to the IoE

End devices are either the source or destination of data transmitted over the network. Click Play in Figure 1 to view
an animation of an IP packet being sent from one end device to another. In order to distinguish one end device from
another, each end device on a network is identified by an address. When an end device initiates communication, it
uses the address of the destination end device to specify where the message should be sent.

A server is an end device that has software installed that enables it to provide information, like email or web pages, to
other end devices on the network. For example, a server requires web server software to provide web services to the
network.

A client is an end device that has software installed to enable it to request and display the information obtained from a
server. An example of client software is a web browser, like Internet Explorer. In Figure 2, click the different clients
and servers for a brief description of each.

Intermediate Network Devices

Intermediate devices interconnect end devices. These devices provide connectivity and work behind the scenes to
ensure that data flows across the network. Intermediate devices connect the individual hosts to the network and can
connect multiple individual networks to form an internetwork.

Examples of intermediate network devices and their roles are:

 Switches and wireless access points (Network Access)

 Routers (Internetworking)

 Firewalls (Security)
The management of data as it flows through the network is also a role of the intermediate device. Click Play to see an
animation of the role of intermediate devices. These devices use the destination host address, in conjunction with
information about the network interconnections, to determine the path that messages should take through the
network.

Processes running on the intermediate network devices perform these functions:

 Regenerate and retransmit data signals

 Maintain information about what pathways exist through the network and internetwork

 Notify other devices of errors and communication failures

 Direct data along alternate pathways when there is a link failure

 Classify and direct messages according to Quality of Service (QoS) priorities

 Permit or deny the flow of data, based on security settings

Network Media

Communication across a network is carried over a medium, such as through a cable or through the air. The medium
facilitates communication from source to destination.

Modern networks primarily use three types of media to interconnect devices and to provide the pathway over which
data can be transmitted. As shown in the figure, these media are:

 Metallic wires within cables

 Glass or plastic fibers (fiber optic cable)

 Wireless transmission

The signal encoding that must occur for the message to be transmitted is different for each media type. On metallic
wires, the data is encoded into electrical impulses that match specific patterns. Fiber optic transmissions rely on
pulses of light, within either infrared or visible light ranges. In wireless transmission, patterns of electromagnetic
waves depict the various bit values.

Different types of network media have different features and benefits. Not all network media have the same
characteristics, nor are they appropriate for the same purposes. The criteria for choosing network media are:

 The distance the media can successfully carry a signal

 The environment in which the media is to be installed

 The amount of data and the speed at which it must be transmitted

 The cost of the media and installation

Packet Tracer – Packet Tracer Introduction

This activity introduces you to the features of Packet Tracer. You will be connecting a PC using a wired connection to
configure the wireless router. Then you will connect a laptop and a mobile device, such as a tablet, to a wireless
router. This wireless router is similar to the type that is used in home or small offices.

Packet Tracer Introduction – Instructions

Packet Tracer Introduction – Activity

Note: If you are new to Packet Tracer, click here to view a tutorial. You must install Packet Tracer before you can
open .pka or.pkz files. If you have not installed Packet Tracer, visit the Student Support and Resources page by
clicking "Return to Class" below, and then "Modules" from the menu on the left.

Types of Networks

Network infrastructures can vary greatly in terms of:

 Size of the area covered

 Number of users connected

 Number and types of services available

Figure 1 illustrates the two most common types of network infrastructures:

 Local Area Network (LAN) - A network infrastructure that provides access to users and end devices in a
limited area such as a home, school, office building, or campus. It provides high speed bandwidth to internal
end devices and intermediate devices.

 Wide Area Network (WAN) - A network infrastructure that interconnects LANs over wide geographical
areas such as between cities, states, provinces, countries, or continents. WANs are usually owned by an
autonomous organization, such as a corporation or a government. WANs typically provide link speeds between
LANs that are slower than the link speeds within a LAN.

Although there are benefits to using a LAN or WAN, most individuals need to communicate with a resource on
another network. This network may be outside of the local network. This communication is achieved using the
Internet.

The Internet is not owned by any individual or group. The Internet is a worldwide collection of interconnected
networks (internetworks or Internet for short), cooperating with each other to exchange information using common
standards. Through telephone wires, fiber optic cables, wireless transmissions, and satellite links, Internet users can
exchange information in a variety of forms, as shown in Figure 2.
The Converged Network

Modern networks are constantly evolving to meet user demands. Early data networks were limited to exchanging
character-based information between connected computer systems. Traditional telephone, radio, and television
networks were maintained separately from data networks. In the past, every one of these services required a
dedicated network, with different communication channels and different technologies to carry a particular
communication signal. Each service had its own set of rules and standards to ensure successful communication.

Consider some schools that were cabled for a computer network thirty years ago. Classrooms were cabled for the
computer network. They were also cabled for a telephone network. And, they were cabled for a video network. These
networks were disparate; meaning that they could not communicate with each other, as shown in Figure 1.

Advances in technology are enabling us to consolidate these different kinds of networks onto one platform referred to
as the “converged network.” Unlike dedicated networks, converged networks are capable of delivering voice, video,
text, and graphics between many different types of devices over the same network, as shown in Figure 2. Previously
separate and distinct communication forms have converged onto a common platform. This platform provides access
to a wide range of alternative and new communication methods that enable people to interact directly with each other
almost instantaneously.

On a converged network there are still many points of contact and many specialized devices, such as personal
computers, phones, TVs, and tablet computers, but there is one common network infrastructure. This network
infrastructure uses a common set of rules, agreements, and implementation standards.
Planning for the Future

The convergence of the different types of networks onto one platform represents the first phase in building the
intelligent information network that will support the IoE. This convergence includes consolidating the applications that
generate, transmit, and secure data. The underlying processes that drive this explosive growth have resulted in a
network architecture that is both capable of supporting change and expansion. It is this converged network that
serves as the fundamental building block for the IoE.

Click Play to view a video of real-life experiences of business owners, government officials, and healthcare providers
as they work towards realizing the IoE.

Lab - Mapping the Internet

In this lab, you will test network connectivity using ping, trace a route to a remote server using Windows tracert, trace
a route to a remote server using web-based and software tools, and compare the results.

Packet Tracer – Packet Switching Simulation

In this activity, you will explore how Packet Tracer serves as a modeling tool for network representations. While doing
so, you will explore a simulation of how packets are created and sent across the network traveling from source device
to destination device.

Click Play to view a demonstration of the Packet Tracer – Packet Switching Simulationactivity.

The video demonstration is the primary source for how to navigate the activity. However, after viewing the video, you
can click the following files to investigate the activity on your own.

Packet Tracer – Packet Switching Simulation – Instructions

Packet Tracer – Packet Switching Simulation A – Activity

Packet Tracer – Packet Switching Simulation B – Activity

Need for Standards

When two devices communicate across a network, they must first agree on a certain set of predetermined rules, or
protocols. Protocols refer to the rules of communication that devices use and are specific to the characteristics of the
conversation. In our day-to-day personal communication, the rules we use to communicate over one medium, like a
telephone call, are not necessarily the same as the protocols for using another medium, such as sending a letter.

Protocols define the details of how messages are transmitted and received. Similar to how people use spoken
language to communicate, protocols contain rules for how devices communicate.

A group of inter-related protocols that are necessary to perform a communication function is called a protocol suite.
Protocol suites help ensure interoperability between network devices. Individual protocols within a protocol suite may
be vendor-specific and proprietary. Proprietary, in this context, means that one company or vendor controls the
definition of the protocol and how it functions. Some proprietary protocols can be used by different organizations with
permission from the owner. Others can only be implemented on equipment manufactured by the proprietary vendor.

Protocol Suite

Networking protocol suites describe processes, such as:

 The format or structure of the message

 The method by which networking devices share information about pathways with other networks

 How and when error and system messages are passed between devices

 The setup and termination of data transfer sessions

Protocol suites can be implemented in hardware or software, or a combination of both. Each layer is responsible for
part of the processing to prepare data for transmission across the network.

One of the most common networking protocol suites is known as Transmission Control Protocol/Internet Protocol
(TCP/IP). All devices that communicate across the Internet must use the TCP/IP protocol suite. Specifically, they
must all use the IP protocol from the Internet layer of the stack, as this allows them to send and receive data over the
Internet.
The TCP/IP model describes the rules that the TCP/IP protocol suite encompasses. The Internet Engineering Task
Force (IETF) defines the TCP/IP model. To learn more about the layers of the TCP/IP model, click each layer in
Figure 1.

Objects that are IP-enabled, meaning that necessary TCP/IP software is installed, will have the ability to forward data
across the Internet directly. Examples of these devices are shown in Figure 2.

Network Connectivity

The bottom layer of the TCP/IP model is network access. Network access covers the protocols that devices must use
when transferring data across the network. At the network access layer, devices can be connected to the network in
one of two ways: wired and wireless.

The most commonly implemented wired protocol is the Ethernet protocol. Ethernet uses a suite of protocols that allow
network devices to communicate over a wired LAN connection. An Ethernet LAN can connect devices using many
different types of wiring media. Click each of the pictures in Figure 1 for more information.

There are a number of wireless network protocols available today. The characteristics of these protocols vary greatly.
Figure 2 provides a few common wireless protocols and shows a visual representation of where these protocols fit in
the classification spectrum. Notice that a protocol can span multiple classifications. Click a protocol in Figure 2 for
more information about characteristics for a number of wireless protocols in use today.

In addition to these protocols, there are other network access layer protocols that are available in both wired and
wireless form.
Network Access for Currently Unconnected Things

For objects with extremely low power requirements to send information across the network, several short-range
wireless communication protocols exist. In some cases, these protocols are not IP-enabled and must forward
information to a connected IP-enabled device, such as a controller or gateway.

Click each protocol for more details.

Chapter 1: What is the IoT?

The Internet is essentially a network of networks. Underneath this network of networks lies a very real backbone of
connections that bring the world to our Internet-enabled devices. The IoE is bringing together people, process, data
and things.
The IoE brings value to organizations in these five areas: customer experience, innovation, employee productivity,
asset utilization, and supply.

Networks provide the foundation for the Internet and, ultimately, the IoE. The components of a network fall into one of
three categories: devices, media, and services.

The two most common types of networks are LAN and WAN. Consolidating different types of networks onto one
platform creates a “converged network.” Unlike dedicated networks, converged networks are capable of delivering
voice, video, text, and graphics between many different types of devices over the same network.

Protocols define the details of how messages are transmitted and received. A group of inter-related protocols that are
necessary to perform a communication function is called a protocol suite. Protocol suites help ensure interoperability
between network devices.

One of the most common networking protocol suites is known as Transmission Control Protocol/Internet Protocol
(TCP/IP). All devices that communicate across the Internet must use the TCP/IP protocol suite. The bottom layer of
the TCP/IP model is network access. Network access covers the protocols that devices must use when transferring
data across the network. At the network access layer, devices can be connected to the network in one of two ways:
wired and wireless. For objects with extremely low power requirements, to send information across the network,
several short-range wireless communication protocols exist. In some cases, these protocols are not IP-enabled and
must forward information to a connected IP-enabled device, such as a controller or gateway.

While most of this chapter is primarily focused on the Internet of Everything, we recognize that industries are using
the phrase Internet of Things to discuss all of the elements that are included in the IoE.

ELEMENTS OF THE IOE

The Four Elements

The idea of connecting things is not a new one. In fact, the Internet of Things (IoT) is a term that has been broadly
accepted since the late 1990s. The IoT refers to the network of physical objects accessible through the Internet.

Not all of the objects that connect to the IoT will be computing devices, but many will be. So, what is a computing
device? While it may be easy to identify a desktop or a laptop computer, the line between what is and is not a
computer can become blurred. Is a car a computing device? What about a watch or a television?

The first computing devices (computers) were huge, room-sized machines that took teams of people to build, manage
and maintain. Today, they are exponentially faster and only a fraction of the size of their predecessors. For the
purposes of this course, a computing device is an electronic machine that performs calculations based on a set of
instructions and is comprised of three main components: a central processing unit (CPU), memory, and an
input/output (I/O) unit.

Based on the definition above, a smart watch is a computing device, but an analog watch is not. The smart watch has
a CPU to run its program, it has memory to store the program and other information, and it has an I/O device to allow
user interaction (screen, display, buttons, sound alerts, etc.). Although the analog watch has the I/O component, it
lacks CPU and memory.
What are Things?

The IoT will include all types of objects, including objects and devices that are not traditionally connected. In fact,
Cisco estimates that 99 percent of physical objects will one day be connected.

These objects contain embedded technology to interact with internal servers and the external environment. These
objects are network-capable, and can communicate across a secure, reliable and available network platform.
Connected objects create vast amounts of data.

The availability of this data changes how and where decisions are made, who makes the decisions, and the
processes that individuals and businesses use to make those decisions. The IoE is built on the connections among
people, processes, data, and things. These are the four elements of the IoE, as shown in the figure. However, the IoE
is not about these four dimensions in isolation. Each amplifies the capabilities of the other three. It is in the
intersection of all of these elements that the true power of the IoE is realized.

Common Devices

The Internet connects more computing devices than just desktop and laptop computers. There are devices all around
that you may interact with on a daily basis that are also connected to the Internet.

For example, people are using mobile devices more every day to communicate and accomplish daily tasks, such as
checking the weather or online banking. Click the items shown in Figure 1 to learn more about mobile devices.

In the future, many of the things in your home could also connect to the Internet so that they can be monitored and
configured remotely. Click the items shown in Figure 2 to learn more about connected household devices.

There are also many connected devices found in the world outside your home that provide convenience and useful,
or even vital information. Click the items shown in Figure 3 to learn more about these connected devices.

How many of these devices do you use on a daily basis?

Connecting Devices

For the IoE to function, all of the devices that are part of the intended IoE solution must be connected together so that
they can communicate. There are two ways to connect devices: wired or wirelessly.

In most cases, connecting devices together using cables is too costly or cumbersome to be practical. For this reason,
most devices will need to send and receive data wirelessly.

There are many different types of wireless communication. The most common types of wireless communication are
Wi-Fi, Cellular, Bluetooth, and near field communication (NFC). Some devices, such as smartphones and tablets, use
a combination of wireless communication methods to connect to different devices.

Click the four top items in the figure to learn how each of these devices connects to a network.

Sensors

In 2012, the number of connected devices on the Internet exceeded the world population. This includes traditional
computing devices and mobile devices, as well as new industrial and consumer devices that we think of as “things”.
Although, this may seem like a lot of devices on the Internet, it represents less than 1% of the objects that could be
connected.

Sensors are one way to collect data from non-computers. They convert physical aspects of our environment into
electrical signals that can be processed by computers. Some examples are soil moisture sensors, air temperature
sensors, radiation sensors, and motion sensors. Sensors of all types will play an important role in connecting what
has traditionally been unconnected in the IoE.

RFID

A popular type of sensor uses radio frequency identification (RFID). RFID uses radio frequency electromagnetic fields
to communicate information between small coded tags (RFID tags) and an RFID reader. Usually, RFID tags are used
to identify and track what they are embedded into, such as a pet. Because the tags are small, they can be attached to
virtually anything including clothing and cash. Some RFID tags carry no batteries. The energy required by the tag to
transmit information is obtained from the electromagnetic signals that are sent by the RFID tag reader. The tag
receives this signal and uses part of its energy to power the response.

The models shown in the figure have a transmission range of a few meters, while other RFID tags are equipped with
a battery and operate as a beacon that can broadcast information at all times. This type of RFID tag usually has a
range of a few hundred meters.

Because of their flexibility and low power requirements, RFID tags are a great way to connect a non-computer device
to a network by providing information to an RFID reader device. For example, it is now common to find car factories
attaching RFID tags to the car bodies. This allows for better tracking of that car throughout the assembly line.

The first generation of RFID tags is “write once read many”. This means that they can be programmed in the factory
once, but cannot be modified out in the field. Newer RFID tags are “write many read many”, with integrated circuits
that can last 40 to 50 years and be written to over 100,000 times. These tags can effectively store an entire history of
the asset to which they are attached, such as the date of manufacture, location tracking history, multiple service
cycle, and ownership.
Controller

Sensors can be programmed to take measurements, translate that data into signals, and then send that data to a
main device called the controller. The controller is responsible for collecting data from sensors and providing an
Internet connection. Controllers may have the ability to make immediate decisions or they may send data to a more
powerful computer for analysis. This more powerful computer might be in the same LAN as the controller or might
only be accessible through an Internet connection.

In order to reach the Internet and then the more powerful computers in the data center shown in the figure, the
controller will first send data to a local router. This router connects the local network and the Internet and can forward
data between them.

The IoT and the IoE

In the video, Jim Grubb, then Cisco's Chief Demonstration Officer, and John Chambers, formerly Cisco’s CEO, define
the opportunity presented by the Internet of Things and how the Internet of Everything will take advantage of these
new opportunities during the Cisco Live 2013 keynote demonstration. Click Play to watch the video.

The Internet of Everything is the networked connection of people, process, data and things.

In the video, the IoT is described as a market transition that is taking advantage of the reduced cost in connecting
things to the Internet. As a result, the IoT implies a fundamental shift in the state of our present economy as we move
towards connecting 50 billion devices by 2020.
However, the IoT is only one of several market transitions that are enabling the full potential of the IoE. For example,
the following are transitions that are also enabling the IoE’s full potential:

 Mobility - providing access to resources from any device, at any time, and from any place

 Cloud Computing - providing distributed computing resources and services over a network

 Big Data - as the volume of data being produced is accelerating, so too is our capacity to analyze and
process it

 IPv6 - expanding the current Internet address space by 3.4×10^38 addresses, easily accommodating 50
billion devices by 2020, and billions upon billions more

The amount of value an organization derives from the IoE depends on its ability to capture transitions, such as cloud,
mobility, and the IoT. For example, John mentions Smart Grid. Smart Grid is a solution that realizes the benefit of the
IoE by improving energy efficiency.

The IoT is about how to connect the unconnected, making things accessible by the Internet. As it relates to the IoT,
the IoE is addressing why we are connecting the unconnected.

What is Data?

Figure 1 illustrates that data is another element of the IoE.

Data is a value assigned to anything that is around us. Data is everywhere. However, by itself, data can be rather
meaningless. As we interpret the data, for example, by correlating or comparing, it becomes more useful. This useful
data is now information. As this information is applied or understood it then becomes knowledge.
In electronic communication, data is represented as 1s and 0s. These discrete elements are known as bits (or binary
digits). All electronic data is stored in this digital binary format. Whereas humans interpret words and pictures,
computers interpret bit patterns.

In Figure 2, use the binary calculator to see how letters are translated into binary code.

The advantage of using digital coding is that data can be stored more efficiently and can be transmitted over long
distances without the quality becoming degraded.

Management of Data

Computers generally lack the contextual awareness and intuitiveness of humans. Because of this, we need to be
aware of the difference between structured and unstructured data, as interpreted by computers.

Structured Data

Structured data refers to data that is entered and maintained in fixed fields within a file or record. Structured data is
easily entered, classified, queried, and analyzed by a computer. For example, when you submit your name, address,
and billing information to a website, you are creating structured data. The structure will force a certain format for
entering the data to minimize errors and make it easier for a computer to interpret it. The animation in Figure 1
represents different types of data being stored in specified locations so that computer programs can then locate the
data.

Unstructured Data

Unstructured data lacks the organization found in structured data. Unstructured data is raw data. It does not possess
the scaffolding that identifies the value of the data. Unstructured data lacks a set way of entering or grouping the
data, and then analyzing the data. Examples of unstructured data include the content of photos and audio and video
files. Figure 2 shows Rafael’s School of Athens. The contents, such as the figures and items in the painting, are not
yet searchable because they have no structure.

Structured and unstructured data are valuable assets to individuals, organizations, industries, and governments. Like
other assets, the information gathered from both structured and unstructured data has measurable value. However,
the value of that data can increase or decrease depending on how that data is managed. Even the best data loses
value over time.

It is important for organizations to take all forms of data (structured, unstructured, and semi-structured) and determine
ways to format that data so it can be managed and analyzed.

To understand the management of data, it is important to understand concepts such as data storage and the
transportation of data.

Data Storage

When referring to storage space, we use the term bytes (B). A single byte is a combination of 8 bits. Other
measurements include:

 Kilobytes (KB) - Approximately one thousand (10^3) bytes

 Megabytes (MB) - Approximately one million (10^6) bytes

  Gigabytes (GB) - Approximately one billion (10^9) bytes

 Terabytes (TB) - Approximately one trillion (10^12) bytes

 Petabytes (PB) - Approximately one quadrillion (10^15) bytes

 Exabytes (EB) - Approximately one quintillion (10^18) bytes

Over the years, the amount of available storage space has increased exponentially. For example, not long ago the
storage space of hard drives was typically measured in megabytes. Today, terabyte hard drives are common.

There are three primary types of data storage:

 Local Data - Refers to data that is accessed directly, by local devices. Hard disks, USB flash drives, and
optical disks are examples of local data storage. Click the items in Figure 1 for more information.

 Centralized Data - Data that is stored and shared from a single centralized server. This information can be
accessed remotely by multiple devices over the network or the Internet. Using a centralized data server can
result in bottlenecks and inefficiencies, and can become a single point of failure. See Figure 2.

 Distributed Data - Data that is managed by a distributed database management system (DDBMS).
Distributed data is data that is replicated and stored in multiple locations. This allows for easy and efficient
sharing of data. Distributed data is accessed through the use of local and global applications. With a distributed
system, there is no single source of failure. Should one site lose power, users are still able to access data
stored at the other sites. See Figure 3.

Internet Service Providers

In centralized and distributed data storage environments, data must be transported over the network or Internet.

Devices that forward data across the Internet must use an Internet Service Provider (ISP). An ISP supplies the
connections to allow Internet access to individuals and businesses, and can also interconnect with other ISPs.
Networks connect to an ISP at a Point of Presence (POP).

Within an ISP, a network of high-speed routers and switches move data between the various POPs. Multiple links
interconnect the POPs to provide alternate routes for data in the event that one link fails or becomes overloaded with
traffic.

To send information beyond the boundaries of an ISP network, packets are forwarded to other ISPs. As shown in the
figure, the Internet is made up of high-speed data links that interconnect multiple ISPs together. These
interconnections are part of the very large, high-capacity network known as the Internet backbone.
IP Addressing

Packets that cross the Internet must be Internet Protocol (IP) packets. Each IP packet must contain a valid source
and destination IP address. Without valid address information, packets will not reach the destination host and return
packets will not make it back to the original source. The IP protocol defines the structure of the source and
destination IP addresses. It specifies how these addresses are used in routing of packets from one host or network to
another.

Currently, the Internet uses IPv4 (IP version 4), but is transitioning to IPv6 (IP version 6). IPv6 allows for greater
access and scalability with more available IP addresses and other features.

The IP address is similar to the mailing address of a person. It is known as a logical address because it is logically
assigned based on the host location. This process is similar to the local government assigning a street address based
on the logical description of the city, village, or neighborhood. It would be impossible to remember all of the IP
addresses for all of the servers hosting services on the Internet. Instead, there is an easier way to locate servers by
associating a name with an IP address. In the figure, servers on the Internet translate the name www.cisco.com to
the IP address for the destination.
IP Packets

Whether playing an Internet video game, chatting with a friend, sending email, or searching the Web, the data being
sent and received is carried in the form of IP packets. Before being sent on the Internet, data is divided into IP
packets. Packet size is between 64 to 1500 bytes for Ethernet networks. Downloading a single song that is 3 MB
would require over 2000 packets of 1500 bytes each. Click Play in the figure to see a packet traverse a route from
source to destination.

On networks, each byte of data is transmitted one bit at a time. Network bandwidth, or data transfer rate, is
expressed in bits per second. For example, a one megabit (1,000,000 bits) connection means that data can be
theoretically transmitted at one megabit per second (1 Mb/s).

IP Address Management

On the Internet, each IP address must be unique. The Internet Assigned Numbers Authority (IANA) is responsible for
controlling the distribution of IP addresses so that there is no duplication. IANA allocates blocks of IP addresses to
one of five regional Internet registries (RIR). ISPs obtain blocks of IP addresses from the RIR in their geographic
region. It is the responsibility of the ISPs to manage these addresses and assign them to customer networks and end
users’ devices and networks.

The ISP determines where to forward the traffic. Packets are passed from router to router, possibly through multiple
ISP networks, until they reach their final destination. Routers in each of the ISPs use the destination address of the IP
packets to choose the best path through the Internet. The switching of packets between Internet intermediate devices
is transparent to users. They only see what was sent and received.

Packet Tracer – Transportation of Data

An FTP server allows you to transfer files between devices in different locations. In this activity, you will create a text
file and upload it to an FTP server. You will then download the file to other devices.

More Connections = More Data

Why all the concern about data? Within the last decade, the volume of data that was produced in a year is now
produced in a week. Data continues to grow exponentially as more of the unconnected become connected.

Data in Motion

Typically, data is viewed as information that has been collected over time. For example, it may have been collected
through various transactions that represent an organization’s order-processing. This data has value to the
organization and is historical in nature. This is static data that we call “data at rest.”

However, as the accelerated growth of large quantities of data continues, much of this data's value is lost almost as
quickly as it is created. Devices, sensors, and video on the IoT are a growing source of new data on a constant basis.
This data provides maximum value while it is interacting in real-time. We call this “data in motion”.

This influx of new data opportunities is providing new paths to improve our world, from solving global health issues to
improving education. There is incredible potential for intelligent solutions to collect, manage, and evaluate data at the
speed of human communications. As a result, the Internet of Everything will increasingly become about “data in
motion.” Click Play to view Cisco’s vision of bringing the evolution of data to the IoE.

Managing Big Data

A driving factor of this growth of information is the number of devices connected to the Internet, and the number of
connections between those devices. But this is just the beginning. New devices are being connected to the Internet
daily, creating an abundance of new data.

With this amount of information, organizations must learn how to manage data and also, how to manage “Big Data”.

There are three primary dimensions of Big Data that must be accounted for: volume, variety, and velocity. Volume
describes the amount of data being transported and stored. Variety describes the type of data it is. Velocity describes
the rate at which this data is moving. Data cannot move without infrastructure. The swiftness of infrastructure
(input/output, bandwidth, and latency) and the ability to rapidly enable optimal resources (network, CPU, memory and
storage) directly affects the velocity of data.

Big Data Analytics

Big Data applications receive information from a wide array of data sources, including PCs, smartphones, tablets,
machines, sensors, social media, and multimedia applications.  Much of this growth in data is due to mobile devices,
as shown in the figure. Mobility enables anytime, anywhere, any device, and any content-user engagement.

Big Data refers to the way in which organizations collect and analyze vast stores of data for insights that can help
identify trends, predict behavior, and empower decision makers. It considers:

 How much data is generated

 How this data is identified and managed as an asset to the organization

 How this data is turned into usable information

 How organizations use this data to make decisions

Ask yourself, what happens when we share information or an opinion about a business on a social network? How is
this information propagated? Who gets this information? And more importantly, how are businesses reacting and
using this information to create new customer connections?

Big Data Analytics (cont.)

Big Data applications must be able to gather this data and structure it in a way that can create value for
organizations. For example, Big Data applications must account for changing data sources and trends, such as:

 Mobility - Mobile devices, events, sharing, and sensor integration

 Data access and consumption - Internet, interconnected systems, social networking, and access models

 Ecosystem capabilities - Major changes in the information processing model and the availability of an
open source framework

As a result, organizations must adjust their current data models to accommodate Big Data. The cost and complexity
of these models will increase, prompting changes in the way Big Data is stored, analyzed, and accessed. To
accommodate this, organizations are increasingly using virtualization and Cloud computing to support their Big Data
needs.

Virtualization

Historically, each computer has its own operating system, applications, and dedicated hardware components. Now,
using software emulation, several virtual computers can run on a single physical computer. This means each virtual
computer has its own operating system, applications, and dedicated hardware components. This is known as
virtualization in computing. Each virtual machine, shown in the figure, operates independently.

In the corporate world, a single physical infrastructure can run multiple virtual infrastructures. By virtualizing the
servers and networks, companies can reduce operational and administrative costs. The operational savings can
come from the reduction in power and cooling requirements and the number of physical machines. A virtual server
can be added to support additional applications.
You can also use virtualization for your personal computing needs. You can try a new operating system on your
computer without damaging your current system. You can browse the Internet safely with your virtual machine. The
virtual machine can be deleted if anything goes wrong.

Cloud Computing

Cloud computing is another way to manage, store, and access data.

Cloud computing involves large numbers of computers connected through a network. Cloud computing providers rely
heavily on virtualization to deliver their services. It can also reduce the operational costs by using resources more
efficiently. These companies provide four distinct categories of services. Click the categories in the figure for more
information.

Cloud computing allows the users to access their data anywhere and at any time. You are probably already using
some form of Cloud computing if you use web-based email services.

Cloud computing also enables organizations to streamline their IT operations by subscribing only to needed services.
By using Cloud computing, the organizations may also eliminate the need for onsite IT equipment, maintenance, and
management. Cloud computing reduces costs for organizations. It reduces equipment costs, energy costs, physical
plant requirements, and support personnel training needs.

Data Centers

Data centers are a critical enabler of Cloud computing. A data center is a facility that provides the necessary services
to host the largest computing environments in existence today. Its main function is to provide business continuity by
keeping the computing services available at all times.
To provide the necessary level of service, several factors must be considered in a data center deployment:

 Location - Data centers should be located where there is reduced risk of natural disasters and sufficiently
distanced from areas with high traffic of people (e.g. airports, malls, etc.) and areas of strategic importance to
governments and utilities (e.g. refineries, dams, nuclear reactors, etc.)

 Security - A data center should extend tight controls over physical access and on-site personnel.

 Electrical - There should be sufficient access to electrical power. There should be backup power consisting
of uninterruptible power supplies, battery banks, and electrical generators.

 Environmental - A tightly controlled physical environment that maintains appropriate temperature and
humidity. It should also include sophisticated fire suppression systems.

 Network - The network infrastructure should be scalable and reliable with redundant connectivity.

Currently, there are over 3,000 data centers in the world that offer general hosting services (IaaS) to individuals and
organizations. There are many more data centers that are owned and operated by private industries for their own
use.

Click here for more information and a detailed tour of the Cisco Data Center in Allen, Texas.

Clouds

Cloud computing uses a shared pool of computing resources (e.g., networks, servers, storage, applications, and
services) to provide on-demand network access. Using virtualization in data center environments, Cloud computing
can be rapidly scaled with minimal management and effort.

As shown in the figure, the National Institute of Standards and Technology (NIST) has defined four types of Cloud
deployment models:

 Private

 Public

 Community

 Hybrid

A Private Cloud is created exclusively for a single organization. The infrastructure could be physically located on or
off site, and may be owned by a separate provider. The Private Cloud provides services only to members of the
single organization.

A Public Cloud is created for use by the general public. The infrastructure is physically located on the provider’s site,
but may be owned by one or multiple organizations that could include businesses, academic institutions, or
governments.

A Community Cloud is created for exclusive use by a specific community. The community consists of multiple
organizations that have shared concerns (e.g., mission, security requirements, policy, and compliance
considerations). The infrastructure could be physically located on or off site, and may be owned by a separate
provider or by one or more of the organizations in the community. The differences between public clouds and
community clouds are the functional needs that have been customized for the community. For example, healthcare
organizations must remain compliant with policies and laws (e.g., HIPAA) that require special authentication and
confidentiality. Organizations can share the implementation effort of these requirements across a common cloud
deployment.

A Hybrid Cloud infrastructure is a composition of two or more distinct cloud infrastructures (private, community, or
public) that are unique entities. These entities are bound together by technology that enables data and application
portability. This portability allows an organization to maintain a single perspective of a cloud solution while taking
advantage of the strengths available from different cloud providers. For example, geography (location to end users),
bandwidth, policy or law requirements, security, and cost are all features that may differentiate providers. A Hybrid
Cloud offers the flexibility to adjust and react to these provider services, on demand.

Three Critical Cloud Requirements

Cloud computing has already helped organizations make significant changes to their infrastructures. This process will
become more pervasive as organizations take advantage of the IoE and assess Big Data needs. Organizations must
leverage a variety of Clouds. They will need an infrastructure and IT staff able to blend those Clouds, and they will
need to determine which Cloud model might be best for each service.
Lab - Install a Linux Virtual Machine

Virtualization is a critical factor in cloud computing and data centers. You can experience virtualization on your own
PC by installing a virtual computer.

Virtual computers that run within a physical computer system are called virtual machines. Today, entire computer
networks are virtualized. Anyone with a modern computer and operating system has the ability to run virtual
machines from the desktop.

Click Play to view a demonstration of installing a Linux virtual machine.

The video demonstration shows how to complete this activity. After viewing the video, you can download the lab
document to investigate the activity on your own.

People Must be Connected

Data alone serves no purpose. A large amount of data which no one can access, serves no one. Organizing that data
and transforming it into useable information enables people to make better-informed decisions and take appropriate
actions. This creates economic value in an economy that is enabled by the Internet of Everything.

This is why People is one of the four elements. People are a central figure to any economic system. People interact
as producers and consumers where the intent is to improve well-being by satisfying human needs. Whether the
connections are people-to-people (P2P), machine-to-people (M2P), or machine-to-machine (M2M), all connections,
and the data generated from those connections, are used to enhance the value for people.
The Internet is teeming with data. Having access to the data and then taking action based upon the knowledge
gained from this information is what the IoE is all about. For example, when Jack Andraka was a 15 year old high
school student, he accessed information on the Internet to develop a test that could detect pancreatic cancer at a
much earlier stage when chances for survival are significantly better.

What would you do to make your world a better place?

Information Transforms Behavior

“This [the IoE] is not about technology at all. It’s about how we change people’s lives.” John Chambers, former CEO,
Cisco Systems

Value is a measure of benefit in an economic system. It is people who determine the value of offerings through a
system of exchange. It is important to highlight that while data and analytics matter, it is judgement from people that
turns data into insights, and insights into IoE value.

The IoE enables accurate and timely information that can result in changing human behavior for the benefit of all
people. It facilitates feedback that allows people to make informed decisions that bridge the differences between
actual outputs and desired outputs. This is known as a feedback loop. A feedback loop can provide real-time
information based on current behavior, and then deliver actionable information to modify that behavior.

How Businesses Use Data

The feedback loop is an important asset to businesses because it helps them react and plan in a constantly changing
business landscape. It allows a business to have relevant and competitive offerings that address customer needs.
For example, many retailers use loyalty cards to track customer purchases and identify trends. This enables retailers
to promote offerings directly to the most relevant shoppers that represent the greatest potential for profit.

A hundred years ago businesses were focused on creating undifferentiated products, selling the same product to
everyone. This was aligned with the evolution of mass production during the same time period. Equally aligned were
promotional strategies for products, mass marketing using signage, pamphlets, and newspapers in hopes that people
would buy the product.

However, a single business product or service is not likely to be needed by every person. A modern business is
aware of targeted marketing that creates differentiated offerings based on customer needs. This is why businesses
need access to customer data.

Micromarketing Example

Target marketing is aimed at a specific group of people, separate from the market as a whole. This market may be
based upon people who live in the same region, or have the same job title, or make a certain amount of money.

For instance, consumer data can show that a particular television program is viewed most by people aged 40 to 65
with an annual household income of $250,000 or more. These programs often run commercials for high-end
automobiles because the car companies have access to the viewer data. They will pay for their commercials to run
when their target market is most likely to see them.
Micromarketing is an even more precise version of marketing. E-commerce sites and loyalty programs allow
businesses to know more precisely what kind of product or service you may require.

For example, you may receive an email from an online site where you have purchased (or even just browsed) before.
This email may let you know about a sale on an item that is similar to something you have purchased in the past.
Additionally, while browsing the web, you may notice an ad for the exact pair of shoes you were looking at online
yesterday. This is not a coincidence.

Collaboration

Inclusive practices that enable people to contribute and collaborate effectively result in better decisions that maximize
value. In fact, improved collaboration within organizations is an area that will benefit most from the IoE. Collaboration
will facilitate innovative new offerings that realize the potential of the IoE.

Collaboration in the IoE will make organizations more aware of customer needs and opportunities. Customers will be
able to solve problems and get advice when and where it is most convenient for them. Organizations will have new
sources of information as people connect using data, voice, video, and social media.

Organizations using collaboration technologies, like those shown in the figure, will be able to predict and proactively
resolve problems. They will be able to leverage social media to identify potential problems and resolve them before
they become a serious issue. They will be able to identify and connect to the right expert at the right time. The
expertise of highly-trained and knowledgeable employees will be more easily scaled across multiple locations.

With these collaboration technologies, businesses will experience the increased innovation and agility that will drive
their growth. Organizations will be able to foster better relationships between employees who provide creative
approaches to offerings, solutions, and processes. They will also be better able to connect decision makers,
regardless of location, so that new innovations can be realized sooner.

Processes Facilitate Interactions

As shown in Figure 1, the fourth element is Process. Processes play an important role in how the other elements of
things, data, and people work with each other to deliver value in the connected world of the IoE.

The Internet has revolutionized the way businesses manage their supply chains and the way consumers shop. Soon
we will have visibility into processes we could never see before. This will provide opportunities to make these
interactions faster and simpler.

With the correct process, connections become relevant and add value because the right information is delivered to
the right person, at the right time, in the appropriate way.

Processes are facilitating interactions between people, things, and data. Today, the IoE brings them all together by
combining machine-to-machine (M2M), machine-to-people (M2P), and people-to-people (P2P) connections, as
shown in the animation in Figure 2.

M2M Connections

Machine-to-Machine (M2M) connections occur when data is transferred from one machine or “thing” to another over a
network. These M2M connections are the most critical part of the Internet of Things.
An example of M2M is a connected automobile that is signaling that a driver is almost home, which prompts the home
network to adjust the home temperature and lighting.

Critical components of modern M2M systems include sensors, actuators, and controllers. They must have a network
communications link and programming that instructs a device how to interpret data, and based on predefined
parameters, forward that data.

M2M connections are typically present in tracking physical assets, optimizing operations through sensor data and
monitoring systems or machines remotely. The most well-known type of M2M communication is telemetry, which is
used to transmit performance measurements gathered from monitoring instruments in remote locations. Products
with built-in M2M communication capabilities are often marketed as being “smart products.”

Currently, M2M does not have a standardized connected device platform. These devices communicate using
proprietary protocols that are device- or task-specific, and are unable to communicate across other platforms.
However, as M2M connections become more prevalent, the need for agreed upon standards will become more
crucial.

M2M communication is an important aspect in many industries, including retail, manufacturing, public service and
service provider industries

M2P Connections

M2P connections occur when information is transferred between a machine (such as a computer, mobile device, or
digital sign) and a person. Whether a person gets information from a database, or conducts a complex analysis, this
is an M2P connection. These M2P connections facilitate the movement, manipulation, and reporting of data from
machines to help people make informed judgments.

The actions that people take based on their informed judgments complete an IoE feedback loop. For example,
portable sensors and monitors can provide round-the-clock information on a patient’s vital signs, but health care
providers are ultimately responsible for using that information to assess patients and provide treatment.
M2P Connections (Cont.)

M2P connections are transactional, which means the flow of information moves in both directions, from machines to
people and from people to machines. Click Play in the figure to view the video of examples of M2P connections.

M2P technologies can range from automated customer notification systems with preset triggers, to advanced
dashboards that help people visualize analytics. People can also perform more complex M2P operations such as
examining and analyzing received data, and determining how to present information to decision-makers.

In addition to offering improvements in efficiency, the IoE provides safety benefits. For example, sensors in the
ground and on miners make it possible to detect danger signs before an accident occurs. Vibrations in soil and rock,
or changes in human vital signs, can prompt real-time M2M or M2P interactions that save property, investments, and
lives.

P2P Connections

People-to-People (P2P) connections occur when information is transferred from one person to another. Increasingly,
P2P connections happen through video, mobile devices, and social networks. These P2P connections are often
called Collaboration.

As shown in the figure, the highest value of the IoE is realized when process facilitates the integration of M2M, M2P,
and P2P connections.

M2M and M2P connections are an important aspect of any IoE solution. But, for a complete IoE solution, individuals
must communicate and collaborate with others using P2P connections.

P2P connections are characterized by collaborative solutions that leverage new and existing network infrastructure,
devices, and applications. These optimized and secure network platforms allow for voice, video and data to be
presented in a single view, to and from any endpoint or mobile device.

P2P applications provide services for managing meeting room reservations and resources, for example, using Cisco
Smart+Connected Meeting Spaces. P2P applications also support online collaboration through web and video
conferencing, for example, using Cisco Webex.
Property Management Case Study

In what ways can the combination of people, process, data, and things across a secure platform create value?
Consider property management and owners, as shown in the figure.

In a commercial real estate market, a property management company must look for ways to differentiate itself from its
competitors by providing unique services to tenants and increasing revenues along the way.

In one example, a property management company installed 95,000 sensors throughout the building on a Cisco
network to track energy usage. By applying analytics applications, the company was able to track energy usage and
help tenants lower their energy bills. This company also provided their building managers and other facilities
employees with mobile devices to improve collaboration and service to tenants.

The result was a 21% reduction in energy costs in 2012.

Timely and Relevant Information

The billions of M2M, M2P, and P2P connections make possible the “everything” in the IoE. The process element
leverages the connections between data, things, and people to deliver the right information, to the right thing or
person, at the right time. It is these billions of connections that add value.

A drop of water is a great metaphor for the IoE. A single drop by itself is not that significant. Yet, when combined with
millions or even billions of other drops, it can change the face of our planet. Like a single drop of water, a single
person, bit of data, or thing connected with billions of other people, data, and things can shape the face of our planet.

To convert our metaphor into a “real-world” IoE example, consider how one tiny drop of water can begin a chain
reaction that causes a big result. Monitoring systems send alerts of a sudden thundershower. Sensors talk to
networks. Networks talk to traffic grids. Traffic grids talk to energy systems. All these work in concert to protect people
and preserve their quality of life.

Chapter 2: Elements of the IoE

The four elements of the IoE are People, Process, Data, and Things.

Things
For the IoE to function, all of the devices that are part of the intended IoE solution must be connected together so that
they can communicate. There are two ways in which devices can be connected; either wired or wirelessly. Devices
that are not traditionally connected to the network require sensors, RFIDs, and controllers.

Data

Big Data refers to the vast amount of data generated every hour by billions of connected devices. Big Data requires
new products and techniques to manage, store, and analyze it. Part of the solution to the problem of Big Data is
virtualization and Cloud computing.

Big Data refers to the way in which organizations collect and analyze vast stores of data for insights that can help
identify trends, predict behavior, and empower decision makers. 

People

Connected people make behavioral transformations based on their access to information. Simultaneously, their
changed behavior affects the information that is generated. This is known as a feedback loop. Organizations use data
generated by connected people to refine and target their marketing strategies.

Process

Processes occur between people, things, and data. Today, the IoE brings them all together by combining M2M, M2P,
and P2P connections.

CHAPTER 3

Imagine the Possibilities

The Internet of Things (IoT) is about connecting the unconnected. It allows for things to be accessible from the
Internet that historically have not been. With 50 billion devices to be connected by 2020, the globe itself will be
“growing a nervous system” and have the ability to sense and respond to ever increasing amounts of data. The
Internet of Everything is able to improve quality of life for people everywhere by taking advantage of these connected
things and the data produced. The IoE also incorporates new processes that enable people to make better decisions
and offerings.

Some of the predictions in this video from 2011 have already come to pass, and more are all on their way!" It
highlights the breadth of things still unconnected and the opportunities available in this next decade. Click play to see
the video.

Connecting Things for Consumers

How does connecting things impact us in our personal lives? Consider the structure of the average home network.

The home network is a LAN with devices that connect to the home router. Most likely, the router also has wireless
capabilities. In this instance, the LAN provides wireless LAN (WLAN) access. Figure 1 shows a typical home WLAN
with a connection to the Internet through a local Internet Service Provider (ISP). The collection of devices and
connections within the ISP are not visible to the home-based customer but are critical for connectivity to the Internet.
The local ISP connects with other ISPs, allowing access to websites and content around the world. These ISPs
connect to each other using various technologies that include WAN technologies, as shown in Figure 2.

M2M networks are unique to the IoT. Figure 3 depicts a series of home security sensors that can communicate with
each other and send data through the gateway router (home router), through the ISP network, to a server
environment in the Cloud. Here data can be accumulated and analyzed.

Connecting Things for Industries

Industrial applications in the IoT require a degree of reliability and autonomy that is not generally required by
consumers. Some industrial applications require operations and calculations that happen too quickly to depend on
human intervention. For example, if our smartphone fails to remind us of an appointment, it is inconvenient. If the
braking system on a large mining truck fails, this can create catastrophic results for the driver and the mine.

The Converged Network and Things

Cisco estimates that 99 percent of things in the physical world are currently unconnected. Therefore, the IoT will
experience tremendous growth as we connect more of the unconnected.

Many things are currently connected using a loose collection of independent, use-specific networks, as shown in the
figure. As a result, they cannot be leveraged in the IoE. For example, today’s cars have multiple proprietary networks
to control engine function, safety features, and communications systems. Converging these systems alone onto a
common network would save over 50 lbs. (23 kg) of cable in a modern full-size sedan. Other examples include
commercial and residential buildings, which have various control systems and networks for heating, ventilation, and
air conditioning (HVAC), telephone service, security, and lighting.
These dissimilar networks will converge to share the same infrastructure. This infrastructure includes comprehensive
security, analytics, and management capabilities. The connection of the components into a converged network that
uses IoT technologies increases the power of the IoE to help people improve their daily lives.

Challenges to Connecting Things

The IoT connects smart objects to the Internet. It connects traditional computer devices as well as untraditional
devices. Within the IoT is Machine-to-Machine (M2M) communication. M2M enables communication between
machines without human intervention. For example, M2M occurs in cars with temperature and oil sensors
communicating with an onboard computer.

Click Play in the figure to see how Cisco is developing digitization solutions for all types of industries. Digitization
means connecting people and things; and making sense of the data in a meaningful and secure way.

Challenges to Connecting Things (Cont.)

We are embarking on a new wave of digitization by connecting the unconnected. To take advantage of this wave of
digitization, companies and cities are now increasingly deploying IoT solutions. However, this rapid increase in
growth has also introduced new challenges including:

 How to integrate millions of things consisting of devices from different vendors each using custom
applications

 How to integrate new things to the existing network infrastructure

 How to secure these new devices, each configured with varying levels of security

To help address these challenges, Cisco introduced an approach to the IoT which is named the Cisco IoT System.
Click Play in the figure to learn more about the Cisco IoT System.
The Six Pillars of the Cisco IoT System

Cisco introduced the Cisco IoT System to help organizations and industries adopt IoT solutions. Specifically, the
Cisco IoT System reduces the complexities of digitization for manufacturing, utilities, oil and gas, transportation,
mining, and public sector organizations.

The IoT system provides an infrastructure designed to manage large scale systems of very different endpoints and
platforms, and the huge amount of data that they create. The Cisco IoT System uses a set of new and existing
products and technologies to help reduce the complexity of digitization.

The Cisco IoT System uses the concept of pillars to identify foundational elements. Specifically, the IoT System
identifies the six technology pillars displayed in the figure.

Supporting the IoT in Industry

There are many different types of networks: home networks, public Wi-Fi networks, small business networks,
enterprise networks, service provider networks, data center networks, cloud networks, and IoT networks. Regardless
of network type, they all need devices to provide network connectivity. However, network connectivity equipment
varies depending on the type of network. For example, home networks typically consist of a wireless broadband
router, while business networks will have multiple switches, APs, firewall, routers, and more.

The Cisco IoT network connectivity pillar identifies devices that can be used to provide IoT connectivity to many
diverse industries and applications.

Click Play in the figure to see a video about the Cisco Connected Factory Solution.

Supporting the IoT in Industry

The Cisco IoT network connectivity pillar helps to create ideal indoor environments that manage lighting and air
temperature seamlessly, based on the preferences of the occupants, using Cisco’s Digital Ceiling.
Click Play in the figure to see a video about how Cisco's Digital Ceiling is putting people first, and transforming the
indoors everywhere.

Supporting the IoT in Industry

The Cisco IoT network connectivity pillar also helps to create a safe and more comfortable environment for miners.
The mining company Goldcorp, partnered with Cisco and AeroScout Industrial to deploy a ‘Ventilation on Demand’
system on top of its underground WiFi.

Click Play in the figure to see a video on how industrial wireless IoT solutions are used at Goldcorp.

Industries have many diverse things that need to connect to the IoT for many different uses. This requires the things
and devices that support IoT connectivity to be deployed in many varied physical environments. Because of this, IoT
devices tend be built to higher, more rugged standards than most other network equipment.

Supporting the IoT in Industry

There are many different types of networks: home networks, public Wi-Fi networks, small business networks,
enterprise networks, service provider networks, data center networks, cloud networks, and IoT networks. Regardless
of network type, they all need devices to provide network connectivity. However, network connectivity equipment
varies depending on the type of network. For example, home networks typically consist of a wireless broadband
router, while business networks will have multiple switches, APs, firewall, routers, and more.

The Cisco IoT network connectivity pillar identifies devices that can be used to provide IoT connectivity to the many
industries that will embrace the IoT.

Click Play in the figure to see a video about how Stanley Black & Decker are using AeroScout and Cisco wireless
solutions to increase productivity throughout their Latin America production plant.

Industrial IoT Devices

The Cisco IoT network connectivity pillar identifies the following purpose-built devices:

 Industrial routers – This category includes a range of compact, ruggedized modular platforms on which
industrial organizations can build a highly secure, reliable, and scalable communications infrastructure. These
products are certified to meet harsh environmental standards. They support a variety of communications
interfaces including Ethernet, Serial, Cellular, WiMAX, RF mesh, and others. Figure 1 displays examples of IoT
industrial router models.

 Industrial switches – This category includes a range of compact, ruggedized switches that handle security,
voice, and video traffic across industrial networks. Figure 2 displays examples of IoT industrial switch models.

 Industrial wireless – This category includes a wide range of Cisco industrial wireless devices which can be
deployed in outdoor, harsh, and hazardous environments. Devices typically interconnect using a fiber-based
backbone connection. Figure 3 displays examples of IoT industrial wireless devices.

 Embedded networks – This category includes compact form factor switch and router cards running Cisco
IOS Software to provide secure data, voice, and video communications to stationary and mobile network
nodes. Figure 4 displays examples of IoT embedded network cards.
Network Models

Networking models describe how data flows within a network. Networking models include:

 Client Server model – (Figure 1) This is the most common model used in networks. Client devices request
services of servers. Servers are often located locally and managed by the organization. For example, Microsoft
Outlook is a client-server model where end users connect to the email server using a locally installed email
client.

 Cloud computing model – (Figure 2) This is a newer model where servers and services are dispersed
globally in distributed data centers. Data is synchronized across multiple servers. Organizations simply
subscribe to different services within the Cloud. End users access applications from Cloud servers without
requiring an application-specific client. For instance, Gmail email is a cloud service where end-users can
access their email from anywhere without requiring a locally installed application.

 Fog computing – (Figure 3) This IoT network model identifies a distributed computing infrastructure closer
to the network edge. It enables edge devices to run applications locally and make immediate decisions. This
reduces the data burden on networks as raw data does not need to be sent over network connections. It
enhances resiliency by allowing IoT devices to operate when network connections are lost. It also enhances
security by keeping sensitive data from being transported beyond the edge where it is needed.

The Fog computing pillar basically extends cloud connectivity closer to the edge. It enables end devices, such as
smart meters, industrial sensors, robotic machines, and others, to connect to a local integrated computing,
networking, and storage system
Fog Applications

All Fog applications monitor or analyze real-time data from network-connected things and then take action such as
locking a door, changing equipment settings, applying the brakes on a train, and more. The action can involve
machine-to-machine (M2M) communications and machine-to-people (M2P) interaction.

Consider the smart traffic light displayed in the figure. The traffic light interacts locally with a number of sensors that
can detect the presence of pedestrians and bikers, and measure the distance and speed of approaching vehicles.
The traffic light also interacts with neighboring lights providing a coordinated effort. Based on this information, the
smart light sends warning signals to approaching vehicles and modifies its own cycle to prevent accidents. The data
collected by the smart traffic light system is processed locally to do real-time analytics. Coordinating with neighboring
smart traffic light systems in the Fog allows for any modification of the cycle. For example, it can change the timing of
the cycles in response to road conditions or traffic patterns. The data from clusters of smart traffic light systems is
sent to the Cloud to analyze long-term traffic patterns.

The Fog computing pillar provides a combination of hardware and software solutions. Some Fog computing platforms
support a special operating system called Cisco IOx. This operating system essentially combines Cisco IOS and
open source Linux. This enables an IoT router to run IOS and a Linux-based Fog application without having to
interact with the cloud.

Cisco predicts that 40% of IoT-created data will be processed in the Fog by 2018.

Security (Cyber and Physical) Pillar

All networks need to be secured. However, the IoT introduces new attack vectors not typically encountered with
normal enterprise networks. The Cisco IoT security pillar offers scalable cybersecurity solutions, enabling an
organization to quickly and effectively discover, contain, and remediate an attack to minimize damage.

These cybersecurity solutions include:

 Operational Technology (OT) specific security – OT is the hardware and software that keeps power
plants running and manages factory process lines. OT security includes the ISA 3000 industrial security
appliance and Fog data services.

 IoT Network security – Includes network and perimeter security devices such as switches, routers, ASA
Firewall devices with and Next-Generation Intrusion Prevention Services (NGIPS).

 IoT Physical Security - Cisco Video Surveillance IP Cameras are feature-rich digital cameras that enable
surveillance in a wide variety of environments. Available in standard and high definition, box and dome, wired
and wireless, and stationery and pan-tilt-zoom (PTZ) versions, the cameras support MPEG-4 and H.264, and
offer efficient network utilization while providing high-quality video.

Click Play in the figure to see a video on the Cisco IoT Security solutions.
Data Analytics Pillar

IoT can connect billions of devices capable of creating exabytes of data every day. To provide value, this data must
be rapidly processed and transformed into actionable intelligence.

The Cisco IoT analytics infrastructure consists of distributed network infrastructure components and IoT-specific
application programming interfaces (APIs).

Click Play in the figure to see a video about Cisco data analytics solutions.

Management and Automation Pillar

The IoT greatly expands the size and diversity of the network to include the billions of smart objects that sense,
monitor, control, and react. While networking these previously unconnected devices can deliver unparalleled levels of
business and operational intelligence, it is essential to understand that operational environments are made up of
multiple, disparate functional areas. Each of these areas also has distinctive requirements, including the need to track
specific metrics. Operational technology systems can vary widely by industry, as well as by function in a given
industry.

Cisco delivers a broad range of IoT management and automation capabilities throughout the extended network.
Cisco management and automation products can be customized for specific industries to provide enhanced security
and control and support.

The Cisco IoT System management and automation portfolio includes management tools such as the Cisco IoT Field
Network Director shown in the figure. Other management tools include Cisco Prime, Cisco Video Surveillance
Manager, and more.

Application Enablement Platform Pillar

The Application Enablement Platform pillar provides the infrastructure for application hosting and application mobility
between Cloud and Fog computing. The traditional Cloud software, platform, and infrastructure-as-a-service (SaaS,
PaaS, and IaaS) models are now possible on Fog nodes. The Fog environment allows for multiple instances of the
application across nodes. These instances can communicate with each other for redundancy and data-sharing
purposes to create business models such pay-as-you-go consumption for objects, machines, and products.

For example, Cisco IOx allows routers to host applications close to the objects they need to monitor, control, analyze,
and optimize. Cisco IOx services are offered on multiple hardware devices that are customized for various industry
needs and can therefore support applications specific to those industries.

Click Play in the figure to see a light-hearted interview about Cisco IOx.

End Devices in the IoT

As previously described, end devices connect to the Internet and send data across the network. Cell phones, laptops,
PCs, printers, and IP phones are examples of end devices that use the Internet protocol (IP). Today there are new
types of end devices that collect and transmit data, but use different protocols such as IEEE 802.15 and NFC. These
non-IP-enabled devices, such as the valves shown in the figure, are critical enablers of the IoT.
Sensors

Sensors are typically purchased with pre-programmed specific instructions; however, some sensors can be
configured to change their degree of sensitivity or the frequency of feedback. The sensitivity setting indicates how
much the sensor's output changes when the measured quantity changes. For example, a motion sensor can be
calibrated to detect the motion of people, but not pets. A controller, which may include a graphical user interface
(GUI), is used to change sensor settings, either locally or remotely.

Click each plus sign (+) in the figure to see what these sensors measure.

Actuators

Another device that is implemented within the IoT is an actuator. An actuator is a basic motor that can be used to
move or control a mechanism or system, based on a specific set of instructions. Actuators can perform a physical
function to “make things happen”. One type of industrial actuator is an electric solenoid used to control hydraulics, as
shown in the figure.

There are three types of actuators used in the IoT:

 Hydraulic - Uses fluid pressure to perform mechanical movement.

 Pneumatic - Uses compressed air at high pressure to enable mechanical operation.

 Electrical - Powered by a motor that converts electrical energy to mechanical operation.

Regardless of how the actuator causes the movement to be performed, the basic function of an actuator is to receive
a signal, and based on that signal, perform a set action. Actuators are typically not able to process data. Rather, the
result of the action performed by the actuator is based on a signal received. The action performed by the actuator is
typically caused by a signal from the controller.

Controllers in the Fog

Sensors collect data and forward it to controllers. The controller can forward any information gathered from the
sensors to other devices in the Fog, as shown in the figure.

Recall the example of a smart traffic light system. The sensors detect and report activity to the controller. The
controller is able to process this data locally and determine optimal traffic patterns. Using this information the
controller will send signals to actuators in the traffic lights to adjust traffic flows.

This is an example of M2M communication. In this scenario, the sensors, actuators, and the controller all exist within
the Fog. That is, information is not forwarded beyond the local network of end devices.

Processing data in the Fog is occurring in less traditional networking environments. As more things in various
industries connect to the network, new network environments are created. For example, Field Area Networks (FANs)
place hardened equipment in harsh or exposed environments. Smart Grid is an example of a FAN. For more detailed
information about FANs, click here.
IP-Enabled Controllers

The controller forwards information across an IP network, and allows individuals to access the controller remotely. In
addition to forwarding basic information in an M2M configuration, some controllers are able to perform more complex
operations. Some controllers can consolidate information from multiple sensors or perform basic analysis of data
received.

Consider the scenario of a coffee plantation, as shown in the figure. The plantation owner wants to monitor the plants
to determine the best time to harvest beans. Sensors can be used to collect information on the physical aspects of
the growing environment, such as weather, soil conditions, and carbon dioxide levels. This information is forwarded to
the controller. The controller forwards a more complete picture of the information to a network server or across the
Internet to a Cloud-based service. Information gathered by the sensor nodes and controller can be further analyzed
and accessed via mobile and remote devices.

In this scenario, the controller collects information from the sensors using the 802.15 protocol ZigBee. The controller
consolidates the information received, and forwards the data to the gateway using the TCP/IP protocol suite.

Controllers, sensors, and actuators will contribute greatly to the expansion of things that get connected in the IoT.
IP-Enabled Sensors

Some sensors and actuators support TCP/IP. The figure shows sensors and actuators connected directly to the
Cloud, through a gateway. In this example, the gateway performs the routing function necessary to give IP-enabled
devices Internet connectivity. The data these devices generate can be transported to a regional or global server for
analysis and further processing
Static IP Addressing

For any IP-enabled device to communicate over an IP network, it must be configured with the correct IP address
information. Typically, this information is configured within the device settings. You can statically, or manually,
configure IP addressing, as shown in the figure for a Windows PC.

An IP address is similar to a street address in that it identifies a unique location across the globe. Your local postal
office is your "gateway" to the postal service, which will use its network of postal locations and transport mechanisms
to deliver your letter to the proper destination address. In a network, your local postal office is called the "default
gateway" with its own IP address. The default gateway is an IP address that is often assigned by the network
administrator or the ISP.

Traditionally, devices on the Internet used IPv4 addresses. However, with an increasing Internet population and a
limited number of IPv4 addresses, the transition to IPv6 (another enabler of the IoE) has begun. IPv6 has a larger
128-bit address space, providing for 340 undecillion addresses. 340 undecillion is written as the number 340,
followed by 36 zeroes! IPv4 only has a theoretical maximum of 4.3 billion addresses, and those are nearly used up.

The IP addresses in the figure are IPv4 addresses. This is an example of an IPv6 address:

2001:0DB8:0000:1111:0000:0000:0000:0200

Automatic IP Addressing

If you have never entered an IP address on any of your personal devices, it is because the IP address information is
automatically assigned to any end device by the Dynamic Host Configuration Protocol for IPv4 (DHCP).

Imagine the amount of time it would take if every end device connected to the network required IP addressing
information to be entered manually. Multiply that by every user, every mobile device, and every IP-enabled device on
the network, and it becomes overwhelming. With DHCP, end users walk into areas served by a given network, plug in
an Ethernet cable or enable a wireless connection, and they are immediately allocated the IP address information.

As shown in the figure, to configure DHCP on a Windows PC, the Obtain an IP address automatically option is
selected. Your device is assigned information from an IP address pool and associated IP information set up on the
DHCP server.

When deploying IPv6, there are other methods that allow a device to obtain its IPv6 addressing information. Stateless
Address Autoconfiguration (SLAAC) is a method that allows a device to obtain information from an IPv6 router.
Dynamic Host Configuration Protocol for IPv6 (DHCPv6) is similar to DHCP for IPv4, allowing a device to receive
information from a DHCPv6 server.

Packet Tracer – Install and Configure IoT Devices

In this activity, you will connect the computing and IoT devices to the home network. All the IoT devices have been
configured to work with rocker switches connected to single-board computer (SBC). The IoT devices need to be
connected to the Home Gateway and registered with the registration server

After the IoT devices are connected to the home network and registered with the registration server, you will be able
to control the IoT devices at home, or away from home, via the registration server.
Role of IoT Infrastructure Devices

Different types of infrastructure devices are shown in the figure.

Infrastructure devices provide a variety of services including:

 Wireless and wired connectivity

 Quality of service queuing (for example, voice data before video data)

 High availability

 Secure transfer

Infrastructure devices connect the individual end devices to the network, and can connect multiple individual networks
to form an internetwork. The management of data as it flows through the network is a primary role of the
infrastructure, or intermediate, devices. These devices use the destination end device address, in conjunction with
information about the network interconnections, to determine the path that messages should take through the
network.
Types of Routers

When a source device sends a packet to a remote destination device, the help of routers and routing is needed. A
router is a device that routes traffic from the local network to devices on remote networks. A router is required
because end devices do not maintain detailed information on how to reach remote destinations. A router is an
intelligent device that collects information about the location of different networks. The router uses this information to
determine the best path to reach those destinations, which is known as the routing process.

There are many types of infrastructure routers available.

Regardless of their function, size, or complexity, all router models are essentially computers. Just like computers,
tablets, and smart devices, routers also require the following:

 Operating systems (OS)

 Central processing units (CPU)

 Input/Output (I/O) interfaces

 Memory

The operating system used in Cisco devices is known as the Internetwork Operating System (IOS). A sampling of the
Cisco router series is shown in the figure. Click each plus sign (+) in the figure to learn more. For complete
information on Cisco routers, visit here.

Cisco ISR 819

To provide M2M connectivity within the IoT, it is often necessary for a router to combine multiple technologies to
communicate with multiple devices. The Cisco 819 ISR, shown in the figure, can combine Wi-Fi with GPS and 3G/4G
WAN connectivity and location services. Combining these technologies allows the 819 ISR to function in many
different environments. For example, in a transportation environment, mobile network end devices must communicate
across long distances using 3G/4G networks. However, in a retail or manufacturing environment, Wi-Fi may be the
best network option for stationary devices.

For more information about the ISR 819, click here.

Cisco 800 Series Industrial ISR

Computing capability can be built into Cisco IoT routers and switches. As previously discussed, Cisco IOx combines
Linux with IOS, to create a distributed computing infrastructure to equip routers for Fog computing. IOx makes it
easier to connect specialized, industry-specific systems at the edge of the network to create new sensing and control
functions with Cisco routers.

Click Play in the figure to see a video on how two industrial routers are used to connect all areas of business.

Small Business Routers

In addition to the more dedicated enterprise devices, like the Cisco IOS 819 ISR, there are also low-cost multifunction
devices available for home and small business networks. These wireless routing devices offer integrated routing,
switching, wireless, and security capabilities. Modern wireless routers offer a variety of features and most are
designed to be functional right out of the box, using the default settings. However, it is good practice to change the
initial, default configurations.

Types of Ports

Small business and home routers typically have two primary ports:

 Ethernet Ports - These ports connect to the internal switch portion of the router. These ports are usually
labeled “Ethernet” or “LAN”, as shown in the figure. All devices connected to the switch ports are on the same
local network.

 Internet Port - This port is used to connect the device to another network. The Internet port connects the
router to a different network than the Ethernet ports. This port is often used to connect to the Internet.

Settings
Most of these small wireless routers are configured using a GUI web interface, as shown in the figure. Settings that
can be configured include:

 Wireless Network Name (SSID) - Name of the WLAN network, if wireless networking is enabled. SSID
stands for Service Set Identifier, which is another name for the wireless network. The SSID is, by default,
broadcast to wireless clients.

 Wireless Password - If wireless networking is enabled, this is the password clients use to connect to the
wireless network.

 Router Password - This is the password used to manage the router and, if configured, is required to access
the wireless router to make configuration changes.

For most home and small business networks, the wireless router provides DHCP services to local network clients.
Clients that wirelessly connect to the wireless router are given the appropriate IP addressing information for
communication to occur.

Gateway

When IP-enabled end devices send a packet to a device on a different IP network, the devices must first forward the
packet to the default gateway. Typically, the router connected to the local network segment is referred to as the
default gateway. In a small business environment the default gateway is the router used to connect the LAN to the
Internet.

In many wireless routers, the IPv4 address of 192.168.1.1 is the default for the router, as shown in the figure. This
address is the default gateway address for all end devices on the local network (LAN). Wireless and wired clients that
connect to the wireless router receive, via DHCP, the default gateway information and an IP address that is within the
same network as the default gateway address. Local clients can then forward packets to the wireless router for
routing out on to the Internet.

Programming Facilitates the IoT

As previously discussed, sensors and actuators are used abundantly in the IoT. Specifically, sensors measure a
physical property and forward that information across the network while actuators perform actions based on a
received signal.

So how do the sensors know what information to capture or which controller to communicate with? And how does the
actuator know which action to perform or which signals are required to activate that action?

Sensors must be told what to capture and where to send that data. A controller must be programmed with a set of
instructions to receive that data and decide if it should process and relay that data to another device. For example,
IoT end devices, such as the computer installed in a car, must be programmed to react to different road conditions.

All of the devices in the IoT must be programmed. Therefore, people with programming skills are critical to the
success of the IoT and the IoE.

Define Basic Programming

What is a program?

A computer program is a set of instructions given to a computer, to be executed in a specific order. Because
computers do not speak human languages, computer programming languages were created. These languages allow
humans to write instructions in a way that computers can understand. While there are several different computer
languages, all computer languages are based on logical structures.

The figure shows the most common logical structures found in programming languages:

 IF condition THEN instructions (If/Then) -This is one of the most common programming structures. It is

used to introduce conditional code execution. The set of instructions following the THEN keyword is only
executed if the conditiongiven is true. If the condition is false, the instructions are never executed. For example,
IF password = 12345, THEN display  “password correct.”  The code above would only show the “password
correct” message if a password of 12345 is entered.

 FOR expression DO instructions  (For/Do) -This logical structure is used to create controlled loops. The

set of instructions is executed as many times as defined in expression. When expression is no longer met, the
loop ends and the computer moves on to the next instruction. For example, FOR count<=10 DO display “not
10 yet!”. The program will check the value of the variable called count. As long as the count is less than or
equal to 10, it will display “not 10 yet!” on the screen. As soon as the count is greater than 10, the structure is
abandoned and the computer moves on to the next line of code.

 WHILE condition DO instructions (While/Do) - The WHILE logical structure is also used to create

controlled loops, but in a different way. WHILE executes instructions as long as the condition is true. When
the condition is no longer true, the structure is abandoned and the computer moves on to the next line of code.
For example, WHILE temperature sensor> 80 DO  show “temperature too high!” on screen. The message
“temperature too high!” will display repeatedly until the value of the temperature sensor is less than or equal to
80.

Logical conditions like these are the building blocks of computer programs.
Types of Programs

Different programs perform different tasks. For example, there are programs to measure and report temperature,
programs governing traffic lights, and programs that allow us to interact with computers and devices.

Sometimes a program category is so common that it receives its own name. A few categories include:

 Firmware - Firmware contains the instructions that the device performs as it boots up. This might be the
only software on the device or it may contain instructions to load a more robust operating system. Examples of
devices that use firmware include watches, printers, TV sets, sensors, cell phones, routers, and switches.
Firmware usually has a considerably smaller set of functionalities and is therefore much smaller in size.

 Operating Systems - These are programs written to allow humans to interact with a computer. Examples of
operating systems are Windows, Mac OS, Linux, Apple iOS, Android, and Cisco IOS, as shown in the figure.

 Applications - These are programs designed and written to perform a specific task or service. Word
processors, image editing tools, spreadsheet editors, collaboration tools, data analysis and monitoring tools are
all considered applications.

Programming Languages

There are many different computer languages used to write computer programs. For example, the C language is a
popular computer programming language. Entire operating systems were written in C. It was initially developed
between 1969 and 1973, however, its evolution into the object-oriented C++ and later to C# kept this language
relevant.

Java (not be confused with JavaScript) is another popular object-oriented programming language. Released by Sun
in 1995, Java focuses on multiple platforms designed to require as few implementation dependencies as possible.
The WORA (write once, run anywhere) acronym is often identified as a characteristic of Java. Due mostly to its
multiplatform aspect, Java is widely used on the web.

JavaScript Programming Example

To give you a better understanding of computer programs, it is useful to analyze some JavaScript code.

JavaScript is a scripting language used primarily in web applications. For example, consider a fictional web
application called Cisco Coffee. This application is designed to act as a monitoring tool, or dashboard, for a coffee
farm. Figure 1 shows a coffee farm.

In this scenario, many sensors are installed in various locations in the coffee field, close to the coffee bean plants.
These sensors report data back to a central station. This station uses the Cisco Coffee web interface to allow users to
monitor the field.

Three types of sensors are installed: temperature, sunlight, and soil moisture. If the temperature drops below 77°F, a
warning is presented on the interface screen. If the coffee plants are exposed to too much sunlight, a different
warning is presented. If the soil becomes too wet or too dry, a different warning is shown.
The JavaScript snippet in Figure 2 is used to implement these tests.

Warnings provide an opportunity for feedback loops. For example, if the soil moisture level is low, it might be
necessary to activate the irrigation system and alert the farmer who may be aware of other circumstances and can
make an appropriate decision. The farmer might decide to intervene and turn off the irrigation system because rain is
in the forecast. Regardless of how the irrigation occurs, the sensor reporting soil moisture should begin showing more
desirable levels, completing the feedback loop.

The Cisco Coffee JavaScript Application

The figure shows a simulated version of the Cisco Coffee JavaScript application currently running in your browser. If
you click Show Real Data, you will see a status message that says, “No sensors found.” That is because there are
no actual sensors attached to the application. The application is generating fictitious sensor data. While the entirety of
the code is out of the scope of this course, feel free to open the file and analyze it on your own to see how much you
understand.

You can view the source by right-clicking anywhere in the figure and choosing an option similar to View
Source or View Frame Source,depending on the browser. Scroll down to the section in the code that starts
with Script. Lines that began with a double forward slash (//) denote comments. The comments provide a brief
explanation of the code. If you would like to investigate this JavaScript application further, you can download the
following files:

Lab – Cisco Coffee JavaScript Application (Optional) - Instructions

Cisco Coffee JavaScript Files.zip

Learn about Google’s Blockly Game

Google provides a series of free and open source educational games that can help you learn programming. It is
called Blockly Games.

To learn more about Blockly Games or try it yourself, click here.

There are a number of levels to complete to help you get started. Blockly may look like a toy, but it is a great tool to
improve your logical thinking skills, which is one of the building blocks of computer programming.

Lab: Create a Program with Blockly

In this lab, you will learn how to implement basic programming concepts like variables and functions, to create a
program in Blockly. You will use the Blockly code editor to create the program.

Lab: Learn about Python

In this lab, you will use a Linux Mint virtual machine that you created previously for Python programming.

Defining Prototyping
Prototyping is the process of creating a rudimentary working model of a product or system. For prototyping in the IoE,
it helps to have design skills, electrical skills, physical/mechanical skills (work with your hands to put things together),
programming skills, and to understand how TCP/IP works. But you do not need to be an expert in any of these areas.
In fact, prototyping helps you to refine these skills.

Because the IoE is still developing, there are still unknown tasks to discover. This is a great time to invent something
that is part of the IoE. Because the IoE combines people, process, data, and things, there is no end to the inventions
that the IoE can help create and then incorporate.

For news and ideas that are already being talked about in the IoE, click here.

How to Prototype

How do you prototype? There are a few ways to get started. A team at Google used the “Rapid Prototyping Method”
to create the Google Glass. Click here view a TedTalk about this process.

Of course, Google has a large number of resources to pay for the people and materials that go into prototyping. Most
of us need some financial help to get our ideas out of our heads and into a prototype. For us, there is crowd funding.
Kickstarter, Indiegogo, and Crowdfunder are just three of the many online crowd funding programs. Click here to view
the Pebble Watch Kickstarter Video. This online video was used to generate donations to help this group of inventors
create the Pebble Watch.

What IoE invention will you create?

Physical Materials

A good place to start is, of course, the Internet. People have exchanged ideas for ages, but the Internet allows for
idea exchanges on a whole new level. People who have never physically met can now collaborate and work together.
There are several web sites you can visit to connect with other makers.

Maker Media is a global platform for connecting makers with each other to exchange projects and ideas. The platform
also provides a place where makers can find and buy products for their projects. For more information, go to
Makezine at http://makezine.com.

It is helpful to have practical skills when working with certain materials; for example, wood and metal are common
prototyping materials, but they may be too difficult for a beginner to use. Making Society has a good section on
modeling plastic and clay. You might be surprised with what you can do with plastic, clay, paper, and wires. For more
information or ideas, go to Making Society at http://makingsociety.com/category/prototyping.

LEGO Mindstorms has a large community of contributors and fans. With LEGO Mindstorms, you can create LEGO
robots and control them using an application. The kits come with everything you need to make it work. Go to LEGO
Mindstorms at http://mindstorms.lego.com.

Meccano, or Erector Set, is a model construction system that consists of reusable metal strips, plates, angle girders,
wheels, axles, and gears, with nuts and bolts to connect the pieces. It lets you build working prototypes and
mechanical devices. Go to Erector Set at www.erector.us.

3D printing is the process of making a solid object based on a 3D model computer file. A machine, called a 3D
printer, is connected to the computer. A number of companies now build and sell 3D printers. Go to Makerbot
at https://www.makerbot.com.
Electronic Toolkits

Computer programs cannot run without a computer. While you can create programs for almost any computer, some
platforms are designed for the beginner. Below you will find some of the most popular platforms.

Arduino is an open-source physical computing platform based on a simple microcontroller board, and a development
environment for writing software for the board. You can develop interactive objects that take input from a variety of
switches or sensors to control lights, motors, and other physical objects. Go to Arduino at http://arduino.cc.

While the Arduino is not suitable for use as a computer, its low power requirement makes it capable of controlling
other devices efficiently.

The Raspberry Pi is a low cost, credit-card-sized computer that plugs into a computer monitor or TV. You operate it
using a standard keyboard and mouse. It is capable of doing everything a computer can do, from browsing the
Internet and playing high-definition video, to making spreadsheets, word-processing, and playing games. Go to
Raspberry Pi at http://www.raspberrypi.org.

The Beaglebone is very similar to the Raspberry Pi in size, power requirements, and application. The Beaglebone
has more processing power than the Raspberry Pi; therefore, it is a better choice for applications with higher
processing requirements. Go to Beaglebone at http://beagleboard.org.

Programming Resources

Programming is critical to the IoE. Creating custom code is very useful when developing an IoE solution. You have
already learned about Blockly at https://blockly-games.appspot.com/. There are many other free resources that can
help you get started with programming.

The MIT OpenCourseWare (OCW) is a web-based publication of almost all MIT course content. Open and available
to the world, OCW is great place to get familiar with computer programming for free. OCW programming related
courses can be found at http://ocw.mit.edu/courses/intro-programming.

Khan Academy is a non-profit educational website created in 2006 to provide “a free, world-class education for
anyone, anywhere”. The lectures related to computer programming can be found
at https://www.khanacademy.org/computing/cs.

Code Academy is another excellent resource. It relies on interactivity to help people learn how to write computer
programs. You can find them at http://www.codeacademy.com.

Community Inventor and Entrepreneurship Workshops

So, perhaps you have just created something really neat. What now? There are a number of places where you can
get help exposing your idea or prototype to others.

Investigate what is available in your community. Check with your local government, schools, and chamber of
commerce for information about workshops, classes, and expert advice.
The Internet has many resources to help your idea get exposure. A good example is Quirky. Quirky allows users to
share their ideas. When an idea is submitted, other Quirky users can vote and choose whether or not they want to
support your idea. If an idea is good, it may become a real product. You can learn more about Quirky
at https://www.quirky.com/how-it-works.

If you do not want to share your idea and all you want is information, Ask the Inventors is a great resource. Their
website provides detailed information on all the phases of your project. View Ask the Inventors
at http://www.asktheinventors.com.

Challenge Lab: Learn about Wyliodrin

Wyliodrin Studio is a chrome app that can be used to configure a Raspberry Pi using a local network. In this lab, you
will add Wyliodrin Studio to your list of chrome apps. Using Wyliodrin Studio, you will download a Raspberry Pi OS
and install it on a microSD card. After installing the microSD card, your Raspberry Pi will have an operating system
that will allow you to configure and control it using Wyliodrin Studio.

Challenge Lab: Introduction to the Raspberry Pi

In this lab, you will use a sample program in Wyliodrin Studio to interact with an LED as part of a simple circuit. You
will build a simple circuit on a breadboard with a resistor and an LED. You will use the LED Blink program to control
the blinking rate of the LED.

Challenge Lab: Introduction to Arduino

In this lab, you will learn to use the Arduino and Arduino IDE to control the blinking rate of an LED.

Chapter 3: Connecting the Unconnected

The IoT is made up of a loose collection of disparate, use-specific networks. The M2M connection is a network type
that is unique to the IoT.

Cisco introduced an approach to the IoT which is named the Cisco IoT System. The six pillars of Cisco’s IoT System
are:

 Network Connectivity

 Fog Computing

 Security (Cyber and Physical)

 Data Analytics

 Management and Automation

 Application Enablement

Protocols refer to the rules of communication that devices use and are specific to the characteristics of the
conversation. A group of interrelated protocols is called a protocol suite, which helps ensure interoperability between
network devices.
Cloud computing is a type of client-server model in which servers and services are dispersed all over the globe in
distributed data centers. Fog computing extends Cloud computing and services to the edge of the network.

End devices, sensors, RFID tags, and actuators can use controllers that are in the Fog. This frees up bandwidth in
the network for other uses. These controllers can use Cisco IOx. These IP-enabled controllers are able to forward
information across an IP network, and allow individuals to access the controller remotely. Some controllers are able
to consolidate information from multiple sensors or perform basic analysis of data received.

Infrastructure devices are primarily responsible for moving data between the controller devices and other end devices
across the network.

Sensors must be told what data to capture and where to send that data. A controller must be programmed to receive
that data and decide if it should relay a message to another device.

All of these functions rely on programs. A computer program is a set of instructions given to a computer, to be
executed in a specific order. Because computers do not speak human languages, computer programming languages
were created. These languages allow humans to write instructions in a way that computers can understand.

Programming is critical to the IoE. There are many other free resources that can help you get started with
programming. Three of the most popular platforms are Arduino, Raspberry PI, and Beaglebone. Check with your local
government, schools, and chamber of commerce for information about workshops, classes, and expert advice.

IT and OT

The IoT is focused on connecting the unconnected, primarily the “things” of the IoE. Connecting the unconnected
requires a convergence between an organization’s operational technology (OT) and the information technology (IT)
systems those organizations have in place.

OT is defined as an organization’s industrial control and automation infrastructure. This includes the hardware (such
as sensors and end devices) and the software that is used to control and monitor the manufacturing equipment and
processes. Most communication in OT is accomplished between machines.

IT systems refer to the network infrastructure, telecommunications, and software applications that are used to
process information and allow the exchange of that information between humans.

Converging IT and OT

By converging IT and OT systems in an IoE solution, organizations can create better products, achieve cost and risk
reductions, and improve performance, flexibility and efficiency. For many industries and organizations, this is
frequently the first step towards digitization.

The figure shows the control center of a modern train system that monitors the status of routes and train operations.
With IoE solutions, organizations can implement a simple, smart, and secure approach that allows organizations to:

 Simplify the Infrastructure (Simple) - Seamlessly converge IT and OT infrastructure to reduce operational
costs and increase process efficiencies.

 Create Intelligence and Agility (Smart) - Use application-centric analytics so applications can run at peak
performance and gain information from the infrastructure for new services.
  Deliver End-to-End Security (Secure) - The converged infrastructure defends against attacks and
responds to threats intelligently and dynamically.

To implement IoE solutions, organizations must examine and account for three distinct connection types: M2M, M2P,
and P2P.

M2M Connections

Critical components of modern M2M systems include sensors, actuators, and controllers. They must have a network
communications link and programming that instructs a device how to interpret data, and based on predefined
parameters, forward that data. The figure shows M2M connections working in an auto plant.

M2M connections are typically present in tracking physical assets, optimizing operations through sensor data and
monitoring systems or machines remotely. The most well-known type of M2M communication is telemetry, which is
used to transmit performance measurements gathered from monitoring instruments in remote locations. Products
with built-in M2M communication capabilities are often marketed as being “smart products.”

Currently, M2M does not have a standardized connected device platform. These devices communicate using
proprietary protocols that are device- or task-specific, and are unable to communicate across other platforms.
However, as M2M connections become more prevalent, the need for agreed upon standards will become more
crucial.

M2M communication is an important aspect in many industries, including the retail, manufacturing, public service and
service provider industries.

M2M Interactions in IoE Solutions

Figures 1, 2, 3, and 4 give examples of the impact that M2M connections can have in retail, manufacturing, the public
sector, and service provider industries. As technology continues to evolve, and new connection types become
available, new sources of value will emerge.

M2P Connections

People play an important role in harnessing the digital intelligence gathered by M2M connections. The resulting M2P
connections are essential for optimal decision making.

For example, portable sensors and monitors can provide round-the-clock information on a patient’s vital signs, but
health care providers are ultimately responsible for using that information to assess patients and provide treatment.

M2P connections mean that people can send information to technical systems and receive information from these
systems. M2P connections are transactional, which means the flow of information moves in both directions, from
machines to people and from people to machines. M2M and P2P connections are also transactional.

M2P technologies can range from automated customer notification systems with preset triggers, to advanced
dashboards that help people visualize analytics. People can also perform more complex M2P operations such as
examining and analyzing received data, and determining how to present information to decision-makers.
In addition to offering improvements in efficiency, the IoE provides safety benefits. For example, sensors in the
ground and on miners make it possible to detect danger signs before an accident occurs. Vibrations in soil and rock,
or changes in human vital signs, can prompt real-time M2M or M2P interactions that save property, investments, and
lives.

M2P Interactions in IoE Solutions

Figures 1, 2, 3, and 4 give examples of the impact that M2P connections can have in retail, manufacturing, the public
sector, and service provider industries.

P2P Connections

M2M and M2P connections are an important aspect of any IoE solution. But, for a complete IoE solution, individuals
must communicate and collaborate with others using P2P connections.

P2P connections are characterized by collaborative solutions that leverage new and existing network infrastructure,
devices, and applications. These optimized and secure network platforms allow for voice, video, and data to be
presented in a single view, on any endpoint or mobile device.

P2P applications provide services for managing meeting room reservations and resources, for example, using Cisco
Smart+Connected Meeting Spaces. P2P applications also support online collaboration through web and video
conferencing, for example, using Cisco Webex.

P2P Interactions in IoE Solutions

Figures 1, 2, 3, and 4 give examples of the impact that P2P connections can have in retail, manufacturing, the public
sector, and service provider industries.

M2M, M2P, P2P Interacting to Form Solutions

Implementing an IoE solution using M2M, M2P, and P2P connections provides organizations and individuals with
actionable insights and seamless automation.

For example, consider how a business that sells metallic purple phone covers might benefit from these interactions
when a sudden spike in demand occurs. Analytics first pick up indications of the increased demand for this product
and color on social media. M2M, M2P, and P2P connections prompt factories and suppliers to rapidly ramp up
production of the product in response to the emerging trend.

As IT and OT converge, all aspects of the supply chain are connected. Through wireless sensors and networked
mobility, companies gain immediate visibility into every aspect of the product cycle, from initial consumer interest to
post-purchase feedback:

 Consumer interest informed by checkout process, carts and shelves, post-purchase feedback
  Inventory informed by loading docks, stock shelves, and warehouses

 Logistics informed by trucks and trains

 Production informed by factory floors and machines

Click each plus sign (+) in the figure in numerical order to see how the interaction of the devices and people in this
scenario might occur.

With IoE, there is the potential of providing connections all the way back to the mines and drilling operations, where
raw materials are extracted from the ground. Those mines, which are the start of the production value chain, illustrate
the IoE’s value, particularly its ability to offer predictive insights.

The six pillars of the Cisco IoT System are critical to M2M interactions within an IoE solution. Industrial switching,
routing, and wireless equipment carry the increasingly massive amounts of data being generated by these
connections in retail, manufacturing, public sector and service provider industries. The ability to process and maintain
data in the fog helps to ensure that the converged network is not overloaded with unnecessary traffic. Both
cybersecurity and physical plant security ensure the integrity and confidentiality of this data.

Understanding Existing Business Processes

Implementing an IoE-enabled business model can improve business operations, lower costs, and allow for more
effective marketing strategies. But how can an organization implement new IoE solutions without disrupting current
operations?

One of the first steps business managers must take is to understand their current processes. They must identify:

 Who their suppliers and customers are

 What their customers need

 What the schedule and process steps are for creating and delivering an offering

For example, as a supply manager or distributor, it is important to understand when receipt of an item will be in
relation to the expiration dates of those same products. Click Play to view the supply chain feedback loop for banana
harvests.

Understanding Existing IT and OT Networks

In addition to understanding business processes, organizations that are implementing an IoE solution must consider
the existing IT and OT network infrastructures and operations.

Business managers must understand how the IT network users interact with the network resources and services. In
addition, Business managers must gather information about all internal and external access to the existing network
infrastructure. Without full knowledge of who has access to the network and how it is used, the intended solution
might not include some user requirements, or incorrectly identify user groups. Other considerations include identifying
the existing network and infrastructure components and capabilities, including support for traffic requirements, data
storage, and security needs.
In addition to understanding IT network operations, business managers must also consider how current networks of
OT systems operate. This includes knowing how the M2M connections currently take place, the information that is
generated from these connections, and how this information is integrated into the current business processes. They
must also identify any connectivity requirements, such as the use of proprietary protocols.

Business Goals and Opportunities

Business managers must also take into consideration business goals, business styles, tolerance to risk, and the level
of technical expertise available. Business managers must analyze the feasibility of an IoE project based on how it
contributes to business success. Considerations might include:

 Profitability - Determine cost and return on investment that result from implementing the IoE project.

 Business growth and market share - Identify growth opportunities and competitive advantages gained
from new insights that result from the IoE implementation.

 Customer satisfaction - Determine the impact on customer experience and loyalty that result from
improved responsiveness to customer needs.

Cisco Streamlines Old Mining Operation

A full IoE implementation is an end-to-end solution with multiple M2M, M2P and P2P connections. Companies must
determine implementation priorities based on those connections that provide the best opportunity to contribute to the
success of the business.

Consider how a mining company might use IoE solutions to optimize operations and reduce costs by asking:

 What benefits can an IoE solution bring to a mining organization?

 How can the organization be impacted by the real-time data?

 How is cost-saving achieved by the IoE implementation?

 What types of profits could be foreseen by the owners, shareholders, and employees?

 While there are many connections that can be made in the IoE solution, which ones will provide the best
return on investment (ROI) and, therefore, should take prioritization?

Click Play in the figure to view how mining companies use IoE to provide connectivity and collaboration across the
organization and the systems they use. A focus of the video is one IoE solution that was implemented to minimize
downtime of trucks used in operations, which can save money.

Determine Technical Requirements

After business managers have determined their priorities and established the changes in business processes that
must be made, the technology professionals can then begin the process of determining the technical requirements.
Click each plus sign (+) in the figure for more information.
Potential Constraints

Constraints can and do affect IoE implementations and should be identified early when implementing a solution. The
relative importance of the constraints varies from project to project. Budget constraints are not always the main
consideration for a large project. Click each plus sign (+) in the figure for more information.

In addition to these common constraints, business managers must also consider the complexity of any existing IT and
OT designs when converging IT and OT in the new IoE implementation.
The IoE Architectural Approach

Cisco’s architectural approach to the IoE is organized into three functional layers. The application layer is dependent
on the platform layer, which is dependent on the infrastructure layer. Click each layer in the figure for more
information on its role in the IoE architectural approach.

This architectural approach reflects the service models of the Cloud Computing model, taking advantage of Software
as a Service (SaaS), Platform as a Service (PaaS), and Infrastructure as a Service (IaaS).

Adjusting Technologies

Organizations must adjust the technologies that are used across the infrastructure and applications. Click each
category in the figure to learn more.

Connecting Processes

The Process pillar describes how people, data, and things interact with each other to deliver societal benefits and
economic value. By connecting the unconnected, we have visibility into new processes, providing opportunities to
create more efficient and effective interactions. Cisco is working with major retailers to use a combination of sensors,
video, and analytics to improve store productivity and customer experience.

Click Play in the figure to view a video about how the IoE affects your trip to a big box store.

The IoE in Retail

When transitioning to an IoE model, retailers have the opportunity to create new and better connections in their
stores, corporate offices, distribution centers, and other environments.

Click each IoE category in the figure for more IoE retail examples.

The IoE in Manufacturing

Before the IoE, manufacturers had little contact with customers and it was time-consuming to collect customer
feedback on products. IT and OT operations were also separate.

With the IoE, products and services can include embedded sensors that provide manufacturers with constant data
and feedback. IT and OT operations are converged.

Click each IoE category in the figure for more IoE manufacturing examples.

The IoE in the Public Sector

Creating new and better connections, and collecting information from assets, can pay enormous dividends for
governments.

Click each IoE category in the figure for more IoE public sector examples.

The IoE for Service Providers

The IoE opens up tremendous possibilities for service providers to monetize their network. Service providers already
have large networks that deliver mobile, video, collaboration, and other offerings to individual subscribers and
businesses of all sizes. They can now integrate many types of IoE connections to deliver rich new services.

The Cisco IoT System in IoE Solutions

The six pillars of the Cisco IoT System are critical to implementing IoE solutions in retail, manufacturing, the public
sector, and service providers. Click each pillar in the figure for more information.

Proprietary Ecosystems

To achieve a complete IoE solution, interoperability is critical. OT networks and systems are often implemented using
proprietary protocols that may be insecure. These protocols do not interoperate well with the protocols of an IP
network, which are typically more secure.
One of the first steps is to develop a solution that allows the devices to speak the same language, regardless of the
vendor. One way to accomplish this is to convert proprietary networks to IP-based networks. Another approach is to
ensure that these proprietary protocols can communicate through a translator.

Technological Growth

Today, the rate of technological growth is accelerating exponentially. To maintain a competitive advantage,
organizations must be able to account for this growth.

There are three primary principles, referred to as laws that organizations and experts can use to help them plan for
technological needs:

 Moore’s Law – This law was proposed by Gordon E. Moore, co-founder of Intel, in 1965. It states that the
number of transistors on integrated circuits tend to double every two years, which increases processing
capacity. (Figure 1)

 Metcalfe’s Law – This law is attributed to Robert Metcalfe. It states that the value of a given network is
proportional to the square of the number of users connected to it. Metcalfe's Law relates to the number of
unique connections in a network of (n) nodes, mathematically expressed as n(n−1)/2. (Figure 2)

 Reed’s Law – This law was proposed by David Reed. It states that the value of the network grows
exponentially if you add up all the potential two-person groups, three-person groups, etcetera, that members
could form. (Figure 3)

Metcalfe's law is frequently mentioned when explaining the Internet's explosive growth. Together, Metcalfe's and
Moore's laws provide a solid foundation to explain the ever-increasing presence and value of information technology
in people's daily lives.

Growth Relevancy to IoE

Moore's law allows organizations to make a rough estimate as to the computing power of machines in the future. The
exponential growth in computing power allows us to make an estimate as to how long before the technology is ready
and available at a reasonable cost to consumers. This allows organizations to not only plan for their own
technological advances, but also to predict the advances of their competitors.

Metcalfe's law is useful for business managers to calculate the optimal number of interconnections between nodes.
They must complete a cost-benefit analysis because the number of connections increases both costs and benefits.

When the cost of sensors used in the IoE becomes low enough, the benefits of more fully-meshed networks are
realized. Currently, most IoE implementations rely on controllers and gateways to aggregate the traffic between IoE
end devices. These types of IoE devices incorporate many-to-many designs, as described by Reed’s law.

These principles allow organizations to better predict and plan for future needs and opportunities.

Big Data Challenges

The exponential growth of data continues as the number of things connected to the Internet increases. However,
more data is not necessarily better if that data cannot be accessed, analyzed, and applied in a usable manner. For
data to be a true asset, it must be used effectively. In addition, using old, inaccurate data wastes time, resources, and
money.

Managing this increased amount of data creates many challenges, including:

 Bandwidth capacity on existing links connected to data centers

 Privacy concerns for user data

 Managing data for real-time communications

 Selecting and analyzing appropriate data

Insights from Big Data will enhance customer engagement, improve operations, and identify new sources of value.
However, the increasing demands of Big Data require new technologies and processes for data centers and data
analysis.

Bandwidth Requirements

As more and more things are connected to the Internet, the demand for bandwidth will increase because of M2M
communications in industrial, government, and home applications.

Fifty sensors may not consume much of your home’s Wi-Fi bandwidth simply because each device intermittently
bursts a small amount of data. However, 50 sensors could be a very conservative estimate of the number of things
connected per home in the next decade.

An essential characteristic of Cloud computing is broad network access. In Cloud computing service models, enabling
on-demand network access to shared computing resources and services over the network results in increased
requirements for network bandwidth. In turn, higher bandwidth requirements demand infrastructure improvements.

Cloud vs Fog Computing

Cloud computing solutions will create substantial increases in bandwidth needs as data and services are moved and
processed in the Cloud, promoting organizational flexibility and agility.

However, some data and service solutions are more appropriate closer to the source. For example, smart light traffic
systems require real-time processing. The selected computing model must enable the level of resiliency, scale,
speed, and mobility that is required to efficiently use the data.

To deliver the best value, system designers must consider the distribution of data and account for different computing
models. As a result, some services and applications may need to move from the Cloud into the Fog. This can help
manage escalating bandwidth needs.
The Learning Society

People are the most valuable asset in any organization. To remain relevant and competitive in any environment,
training must be a top priority. The impact of the IoE will affect all aspects of an organization's operations. As a result,
the entire organization will require training to take advantage of IoE opportunities. For example, OT and IT must work
together in innovative ways to overcome the challenges and realize the benefits of the IoE.

Need for Additional Security

The increased number of connected devices and the amount of data they generate increases the demand for security
of that data.

Click Play in the figure to view the video of John Stewart, Senior Vice President, Chief Security Officer at Cisco
Systems, discussing how to secure billions of devices in the IoE.

Hacking attacks are a daily occurrence, and it seems no organization is immune. Given how easy it is to steal and
misuse information in today’s connected world, it is only natural to be concerned about this problem as people,
process, data, and things all become connected in the IoE. For example, in the video at the link that follows, Dr.
Kathleen Fisher of the Defense Advanced Research Projects Agency (DARPA) describes how a hacker could control
the operation of an automobile remotely: DARPA and Car Hacking.

Security Strategy

The larger and more integrated the IoE solution, the more decentralized the network becomes. This allows for a
greater number of access points into the network, which introduces a greater number of vulnerabilities. A significant
number of the devices communicating across the IoE will be transmitting data from insecure locations, but those
transmissions must be secure. However, securing an IoE solution can be difficult due to the large number of sensors,
smart objects, and devices that are connected to the network. The potential harm caused by allowing unsecured
devices to access an organization’s network is a significant challenge for security professionals.
So how does an organization or individual leverage the benefits of the IoE while managing risk? Click the three
strategies in the figure for more information.

Pervasive

Currently, network security is largely driven by the effort to stay ahead of threats. Just as medical doctors attempt to
prevent new illnesses while treating existing problems, network security professionals attempt to prevent future
attacks while minimizing the effects of successful attacks.

Within the IoE, security must be pervasive. The approach to security must be:

 Consistent, automated, and extend to secured boundaries across organizations

 Dynamic, to better recognize security threats through real-time predictive analytics

 Intelligent, providing visibility across all connections, and elements of the infrastructure

 Scalable, to meet the needs of a growing organization

 Agile, able to react in real-time

 Comprehensive, end-to-end solution

A pervasive security solution avoids disjointed security implementations that can increase complexity, be difficult to
manage, and require increased staffing and technical knowledge to support.

Security Architecture

Securing IoE networks cannot be about securing just the individual devices. Rather, it is about implementing an end-
to-end security solution.

A security solution that provides protection with centralized policy management and distributed enforcement must be
integrated throughout the network. Continuous monitoring of activity on the network is needed to aggregate and
correlate data across the connected environment, leveraging insights, and taking action as needed.

Cisco’s security architectures use infrastructure, platform, and application layers to provide a comprehensive set of
tools and systems. These tools and systems work together to produce actionable security intelligence, in near real-
time, while allowing the network to adjust to security threats with little or no human intervention required. Click each
Cisco Security Architecture principle in the figure to learn more.

Security Devices

Some of the devices in the security architecture that can be used to control access, inspect content, and enforce
policies include:
  Firewalls - A firewall creates a barrier between two networks. The firewall analyzes network traffic to
determine if that traffic should be allowed to travel between the two networks based upon a set of rules that
have been programmed into it, as shown in the Figure 1 animation.

 Intrusion Prevention Systems (IPS) - The IPS monitors the activities on a network and determines if they
are malicious. An IPS will attempt to prevent the attack by dropping traffic from the offending device or resetting
a connection. Click the numbers in Figure 2 to learn more about how an IPS works.

Application-Centric Security

As organizations move to application-centric environments, the traditional security solutions are no longer adequate.
Cisco's Application Centric Infrastructure (ACI) Security Solutions protect environments by fully integrating
customized security technologies for the needs of a specific application. ACI Security Solutions can be managed as a
pool of resources that are attached to applications and transactions using a central controller. This solution can
automatically scale on demand providing seamless policy-based security.

This solution allows for a holistic, policy-based approach to security that reduces cost and complexity. It integrates
physical and virtual security technologies directly into Cloud and datacenter infrastructures.

Click Play in the figure to view a video overview of the Cisco ACI.

Wireless Security

The difficulties in keeping a wired network secure are amplified with a wireless network. A wireless network is open to
anyone within range of an access point and the appropriate credentials to associate to it.

Wireless security is often implemented at the access point, or the point where the wireless connection enters into the
network. Basic wireless security includes:

 Setting strong authentication protocols with strong passwords

 Configuring administrative security

 Enabling encryption

 Changing all default settings

 Keeping firmware up-to-date

However, even with these configuration settings, with a wireless-capable device and knowledge of hacking
techniques, an attacker can gain access to an organization’s or an individual’s network. Additionally, many new
wireless-enabled devices that connect to the IoE do not support wireless security functionality.

For this reason, traffic from smart wireless and mobile devices, and traffic from sensors and embedded objects, must
pass through the security devices and context-aware applications of the network.
Redundancy and High Availability

With so many connections to the network, it is important to ensure that the network is available and reliable.

Redundancy requires installing additional network infrastructure components, telecommunication links, and power
components to back up primary resources in case they fail. Redundancy also enables load sharing of resources,
providing a high-availability system design that ensures that a pre-arranged level of operational performance will be
met during a contractual measurement period.

In addition to having redundant equipment and connections, data must also be backed up. Secure backups archive
the data in an encrypted format, preventing unauthorized access to the stored archive.

People are the Weakest Link

Some people have malicious intent, while others make mistakes or follow unsecure practices, putting equipment and
data at risk. To protect assets, rules and regulations must be put in place to define how users should act, what
actions are right or wrong, what they are allowed to do, and how they access systems and data.

Security Policy

A security policy defines all of the rules, regulations, and procedures that must be followed to keep an organization,
its people, and systems secure. A security policy can be divided into many different areas to address specific types of
risk. Click each policy type in the figure for more information.

The most important part of a security policy is user education. The people governed by the security policy must not
just be aware of this policy; they must understand and follow it to ensure the safety of people, data, and things.

To learn more about security polices, click here.

Personal Data and the IoE

Organizations can collect all sorts of personal data; however, there is a legal and ethical struggle between access
and privacy. Blocks of data are enhanced with metadata that includes information about where the data was created,
who created it, and where it is going. In this way, data becomes property that can be exchanged. This change will
allow personal information to be audited to enforce policies and laws when issues arise.

The definition of personal data, however, is evolving. What might be personal data to one person may not seem like
personal data to another person. For example, a cancer patient and a healthy patient may have very different ideas
on what medical information they want kept private. Click the "+" next to each image for details about the types of
data that are now considered to be personal data.

Chapter 4: Transitioning to the IoE

The IoE requires a convergence of the OT and IT systems that an organization has in place.

M2M refers to any technology that enables networked devices to exchange information and perform actions without
the manual assistance of humans. In M2P connections, technical systems interact with individuals and organizations
to provide or receive information. P2P connections are collaborative solutions that leverage the existing network
infrastructure, devices, and applications, to allow seamless communication and collaboration between people. Each
of these types of connections is transactional.

One of the first steps in implementing an IoE solution is to understand current processes and procedures. In addition
to understanding business processes, consider the existing IT network infrastructure, network operations, and
network management tools.

Security must be able to react in real-time, so it must be high-performance and scalable. Cisco’s security architecture
provides a comprehensive set of tools and systems that work together to produce actionable security intelligence, in
near real-time, while allowing the network to adjust to security threats with little or no human intervention required.

A security policy defines all of the rules, regulations, and procedures that must be followed to keep an organization,
people, and systems secure.

The definition of personal data is evolving.

Improving Healthcare with IoE

The IoE is already improving the healthcare industry. Click Play in the figure to view a video demonstrating how the
IoE is being used in every aspect of healthcare.

A Diabetic Patient Healthcare Solution Model

To demonstrate how the IoE is improving patient care, we will focus on a patient with type 1 diabetes. Type 1
diabetes is a disease where a person’s body does not produce insulin, a hormone needed by the body’s cells so that
the cells can absorb glucose. The glucose is used by the cells for energy. Without enough insulin, glucose builds up
in the blood, and cells starve for glucose. This is known as hyperglycemia. With too much insulin, the body burns too
much glucose. This is called hypoglycemia. Very high or very low glucose levels can lead to a diabetic coma, where a
patient becomes unconscious, and can die if left untreated. Type 1 diabetics must diligently monitor the levels of
glucose in their bodies. As shown in the figure, they may need to administer proper amounts of insulin to maintain a
healthy level of glucose in their blood.

To illustrate a healthcare solution model we will examine John Doe. John Doe is 55 years old. He was diagnosed with
diabetes 5 years ago, and has difficulty maintaining healthy glucose levels. He has a record of hospitalization and
diabetic coma. John has recently begun using a health monitoring company (HMC) to help him avoid diabetic comas
and emergency visits to the hospital. He wears a continuous glucose monitoring (CGM) device and a fitness tracker
to monitor his exercise level and respiration. These devices provide the data for the health monitoring company to
determine when his state of health moves outside his normal range.

When John’s health data is showing dangerous patterns like those that he has exhibited in the past, the health
monitoring company sends John an alert on his smartwatch, smartphone, tablet, and television. The alert tells John to
call the health monitoring company so that they can assess his condition. If John still does not change his behavior,
and he continues this trend, the health monitoring company will dispatch a mobile patient treatment center (MPTC) to
administer urgent care.
M2M Interactions

The diabetic healthcare solution model is an IoE solution that can serve as a prototype for other health monitoring
companies. When developing an IoE solution, it is important to design a model before creating a prototype.

Modeling an IoE solution begins by understanding the potential M2M, M2P, and P2P interactions. Figure 1 shows an
initial model of traffic signal control for the health monitoring company’s mobile patient treatment center. When
sensors indicate that a mobile patient treatment center is approaching an intersection, and the signal is red, the signal
is changed to green to allow the mobile patient treatment center to reach John faster. This decision does not need to
be made by a person, nor does the information required to make the decision need to be sent to the Cloud. Data
concerning traffic patterns, congestion, and emergency signal interruptions are sent to the Cloud for storage and
analysis periodically.

Another example of M2M interactions that may take place in this healthcare solution model is the interaction between
the health monitoring company system and the electronic lock that is on John’s front door. For medical personnel to
enter his home when they arrive, the health monitoring company system sends a one-time-use code to the lock,
shown in Figure 2.

Click here to learn more about connected transportation.

M2P Interactions

In the healthcare solution model, a simple M2P interaction involves the equipment used to monitor John. When
John’s glucose is too low or too high, and he begins to show symptoms, his health can be compromised very quickly.
Without treatment, he will quickly become unable to treat himself, and will need medical attention immediately. The
health monitoring company system sends an alert to John’s devices which he must acknowledge, as shown in the
figure. If John fails to contact the health monitoring company, medical personnel will be dispatched to his location.
These are some additional examples of where M2P interactions in the healthcare solution model help to improve
healthcare for patients:

 The health monitoring company system sends a one-time-use code to a tablet carried by personnel on the
mobile patient treatment center so that they can enter John’s house easily when they arrive.

 The health monitoring company collects all of John’s glucose monitor data so that he can see his levels,
allowing him to administer the proper amount of insulin.

P2P Interactions

These are some of the P2P interactions that take place in the healthcare solution model:

 Patient to health monitoring companypersonnel - When alerted, John must call and speak with a
healthcare worker at the health monitoring company. Without this important P2P step, emergency personnel
will be dispatched to treat John immediately.

 Patient to mobile patient treatment centerpersonnel - When emergency personnel arrive, they will
administer medical attention to restore John’s glucose levels to normal. This critical P2P interaction could save
John’s life.

 Doctor to patient - John must consult with his doctor on a regular basis to ensure that he is following
directions to maintain a healthy lifestyle. His doctor may decide to adjust John’s treatment strategy based on
this P2P interaction.

Analytical Tools

There are enormous amounts of data created in the IoE. To apply this data to processes, people use analytical
software. Analytical software ranges from simple spreadsheet tools to determine statistics for a given range of data,
to sophisticated business software suites. The software may be created and sold by a large organization, developed
independently and provided through open source means, or designed by the business that uses it for a specific
purpose.

The majority of analytics were used as a method of forecasting supply, based on the number of units sold in a given
amount of time. Analytics in the IoE has advanced to address many new aspects of business. Some of the following
types of analytics are used to help shape how a business functions:

 Descriptive - Uses historical data to create reports designed to facilitate understanding

 Predictive - Uses data mining and modeling techniques to determine what could happen next

 Prescriptive - Uses simulation, business rules, and machine learning to recommend a course of action and
what the outcome of that action might be

In the healthcare solution model, the health monitoring company uses analytics of all kinds to improve the quality of
healthcare.
Analytics in Healthcare

In the healthcare solution model, IoE technology improves healthcare by analyzing trends in a patient’s vital signs
and other indicators such as blood glucose levels. This data can be monitored in real-time to alert the patient and the
health monitoring company so that they can make decisions quickly and correctly. As a patient goes about daily life,
data is constantly gathered by sensors worn by the patient. This data is sent back to the health monitoring company
for storage and analysis. Over time, this data is analyzed to find trends which are used to determine if the patient may
require immediate assistance.

IoE technology in this healthcare solution model is not used just for monitoring a patient’s health. It is also used in
many other areas to improve healthcare. For example, data from live traffic cameras and historical traffic data can be
used to route the mobile patient treatment center more effectively to arrive at a patient’s location faster. New uses for
IoE technology in the healthcare industry are being discovered every day to help patients live longer, healthier lives.

Packet Tracer – Diabetic Patient Healthcare IoE Solution

This Packet Tracer activity simulates an IoE Healthcare solution for a fictitious person, John Doe.

Click Play to view a demonstration of the Packet Tracer activity.

The video demonstration is the primary source for how to navigate the activity. However, after viewing the video, you
can click the following files to investigate the activity on your own.

Packet Tracer – Diabetic Patient Healthcare IoE Solution – Instructions

Packet Tracer – Diabetic Patient Healthcare IoE Solution – Activity

Value in Good Modeling

As you learned in the Packet Tracer activity, modeling is a valuable step in the implementation of an IoE solution. By
modeling the potential solution, the changes in the organization’s processes are visualized. The model can be shared
among all stakeholders to ensure an understanding of how the new solutions work and interact.

A model can be a representation of a system. Models help individuals and organizations better understand the
processes that are implemented and help identify problem areas. Models help to run “what if” scenarios that reveal
the benefits and impediments to implementing a new solution. When an organization begins process re-engineering,
it is beneficial to use modeling prior to executing any plans.

While modeling may not be easy, the benefits of good modeling outweigh the costs of poor or rushed modeling for
most organizations.
Flowcharts

Flowcharts are a useful tool for the processes that make up an IoT model. Flowcharts are graphical representations
of the workflows that businesses use to analyze and document existing systems, as well as design and manage
process re-engineering efforts. A flowchart uses symbols to represent workflows and decisions. The basic symbols
for a flowchart, as described by the International Organization for Standardization (ISO) are shown in the figure. The
ISO also describes a number of specific symbols for data and process that are not referenced in the figure.
Healthcare Model Flowchart

The figure shows a flowchart of basic processes in our model of a healthcare solution. Wearable sensors on a patient
provide monitoring to inform patients and other healthcare workers while creating an historical record to identify
trends in a patient’s health. Based on these trends, a patient may be notified of an unhealthy condition, or medical
personnel may be dispatched. This is an example of a feedback loop. Additionally, analysis of historical data can help
to identify opportunities and improvements in the overall operation of the healthcare system. This can lead to future
processes that help patients in ways we cannot identify now.
Physical Topology

A network topology is a kind of map that identifies various elements of a computer network. A network is represented
by two topology types: physical and logical.

The physical topology displays the layout and location of all of the devices that comprise the network. The physical
topology describes how devices are actually interconnected with wires and cables, as shown in Figure 1.

This physical topology will change when mobile devices are incorporated into the network. Mobile devices require
connectivity, regardless of their location, for access, monitoring, and control. Some sensors may be located beyond
the range of traditional wireless solutions and it may be too expensive to connect them with data cabling. Cellular
connections may be required to provide the necessary data links to controllers, central data storage or processing
equipment.

The mobile devices must be represented in the physical topology. For wireless connectivity, an inspection, called a
site survey, should be done to determine a basic, physical topology.

These are some considerations when determining a physical topology:

 The location of user computers

 The position of network equipment, such as switches, routers, and wireless access points

 The position of controllers and servers

 The position of sensors and actuators

  The potential for future network growth

Wireless access points must be strategically placed throughout the hospital to relay data. A wireless survey shows
where the wireless access points can be located and the strength of the wireless signals, as shown in Figure 2.
Wireless access points may be moved to distribute coverage, or additional access points may be installed where
needed. The physical topology must be updated to reflect any devices that have been relocated or added.

Logical Topology

Logical topologies are based on how the communication protocols work. They convey a different perspective than
physical topologies. The logical topology represents the way data flows through the network. It describes how devices
exchange data with network users. As shown in the figure, an integral part of the logical topology is the addressing
scheme. This addressing scheme helps identify network and data needs.
Let’s get Digital

In this course, you have learned about the Internet of Everything and its value to people, industries, and the
environment. The IoE is important because it is the path to a bigger transformation; and that is the digital
transformation, or digitization. The Cisco IoT System provides a comprehensive set of products and services to help
any organization or industry achieve digitization. As mentioned at the beginning of this course, when an organization
or business has embraced digitization in all aspects of its operation, it is completely digital. A digital organization or
business is more agile, able to respond to change more quickly, and will be more profitable.
The Benefits of Digital Transformation

As stated before, the IoE is not the goal, it is the path to digital transformation and eventually, complete digitization.
Because the IoE encompasses people, processes, data and things, it is the natural starting point for any organization
or business that wants to become digital.

There are many benefits to becoming completely digital:

 Improve product quality and operational effectiveness - Easily connect IT and operational technology.
Use analytics and open APIs to control, monitor, analyze, and optimize performance.

 Mitigate risk in an increasing hostile threat environment - Use scalable, comprehensive cyber and
physical security.

 Create new revenue streams - Use pervasive IoT analytics to accelerate new service delivery and
enhance product quality with data privacy.

 Lower operating expenses - Use a common network to increase uptime, react quickly to changing market
conditions, and reduce energy consumption.

The Cisco Networking Academy Program

The rapid growth of networks has created a global shortage of people who are qualified to implement and maintain
networking solutions, especially in places where networks are being built to promote economic development. At the
same time, people need access to better training and career opportunities to successfully compete in the global
economy.

With over 9,000 academies in 170 countries, the Cisco Networking Academy helps individuals prepare for industry-
recognized certifications and entry-level information and communication technology (ICT) careers in virtually every
type of industry. The Cisco Networking Academy helps address the growing demand for ICT professionals, while
improving career prospects in communities around the world.

The Cisco Networking Academy Program has trained more than five million students to date. Many graduates have
gone on to successful ICT careers in a variety of industries, while others have harnessed the entrepreneurial spirit
and knowledge they acquired to start their own businesses and create new jobs.

Networking Academy Curricula

The Networking Academy delivers a comprehensive, 21st century learning experience. Students develop the
foundational ICT skills needed to design, build, and manage networks, along with career skills such as problem
solving, collaboration, and critical thinking. Students complete hands-on learning activities and network simulations to
develop practical skills that will help them fill a growing need for networking professionals around the world. These
are some of the offerings of the Networking Academy:

 IT Essentials - IT Essentials covers the fundamentals of computer hardware and software and more
advanced concepts, such as security, networking, and the responsibilities of an IT professional.

 Entrepreneurship - The Entrepreneurship course teaches critical business and financial skills, attitudes,
and behaviors to help students develop an entrepreneurial mindset that can empower them to improve their
overall quality of life.

 Introduction to Cybersecurity - The Introduction to Cybersecurity course covers trends in cybersecurity

and demonstrates the need for cybersecurity skills in various industries.

 CCNA Routing and Switching – Cisco Certified Networking Associate (CCNA) Routing and Switching
provides a comprehensive overview of networking concepts and skills. It covers skills and knowledge required
for administrators of devices in small to medium-sized networks. This curriculum has an emphasis on practical
application, work-force readiness, and soft-skills development.

 CCNA Security - CCNA Security introduces the core security concepts and skills needed to install,
troubleshoot, and monitor a network to maintain the integrity, confidentiality, and availability of data and
devices.

 CCNP – This curriculum is the next step for people who have completed the CCNA Routing and Switching
courses.

For more information on our latest offerings, go to the Networking Academy website at www.netacad.com.

IT Industry Certifications

Industry certifications are highly respected by employers around the world and help validate the skills needed to
launch successful careers in networking and ICT. Certifications are achieved by passing an exam proctored by a
certifying authority. Students must complete training materials specific to the certification exam. Field experience is
often very helpful, but not always required, to pass a certification exam. Cisco Networking Academy provides courses
that prepare students for the industry certifications that are shown in Figure 1.
There are two basic types of certification available: vendor-specific and vendor neutral. Vendor-specific certifications
are tailored to technologies offered by a company to prove that an individual is qualified to deploy and manage that
technology. Vendor-neutral certifications are offered by many different organizations. They show that an individual
has a well-rounded skillset centered on common systems and programs, rather than specific types of technology.

Most often, certifications must be renewed over time. Requirements for re-certification may be earning continuing
education units (CEUs), passing a re-certification exam, or both. CEUs can be earned by attending classes,
professional membership, on-the-job experience, or research and publishing of materials that support the certification
technology.

The Cisco Certification Tracks are shown in Figure 2. To explore all of the different Cisco career certifications, visit
the following website: https://learningnetwork.cisco.com.

Additional Learning Opportunities

Certifications can show an employer that an individual has the appropriate skills for a job. Community college or
university degrees can show that a person has gained a broad understanding in an educational field. This broad
understanding creates a solid foundation for emerging career opportunities in the IoE. A combination of industry
certifications and university degrees provides a student with the best background, experience, and education to
pursue a career with greater opportunities and higher salary.

When looking for a degree to pursue at a community college or university that will pertain to the skillsets needed for a
career in the IoE, watch for some of the following degrees:

 Business Intelligence

 Computer Information Systems

 Computer Programming

 Computer Science

 Database Administration

 Electromechanical Automation

 Electronics Engineering

 Linux Networking

 Machining

 Network Administration

 System Analysis

 Web Server Administrator

This is not an exhaustive list. Even traditional degree programs such as supply chain management, business, and
project management are helpful for careers in IoE. Computer-Aided Design (CAD), drafting, math, and physics are
applicable and show a diverse education, which is perfect for an IoE career.
IT Industry Jobs for the IoE

The IoE is creating demand for a broad spectrum of IT jobs. These opportunities may be specific to Fog computing,
developing new processes, or a specialization in a discipline that has not yet been realized. These jobs reflect skills
spanning multiple disciplines that include computer science, computer engineering (a blend of computer science and
electrical engineering), and software engineering in the following areas:

 Collaboration

 Enterprise networks

 Data center and virtualization

Create Your Own IoE Job

The IoE is also creating demand for a new kind of IT specialist, individuals with the skillsets to create new products
and process the data they collect. A workforce is needed that specializes in both information science and software or
computer engineering.

Additionally, operational technologies and information technologies are converging in the IoE. With this convergence,
people must collaborate and learn from each other to understand the things, the networks, and methodologies that
harness the limitless potential of the IoE.

Chapter 5: Bringing it all Together

The Healthcare model that is used in this chapter details M2M, M2P, and P2P interactions. It models every aspect of
patient monitoring from basic vital signs to dispatching healthcare professionals to treat patients.

Descriptive, predictive, and prescriptive analytics help shape how a business functions.

Modeling the potential IoE solution identifies the changes in the organization’s processes. A flowchart uses symbols
to represent workflows and decisions.

A network topology is a kind of map. There are two types of network topologies, physical and logical. The physical
topology displays the layout and location of all of the devices that comprise the network. The logical topology
represents the way data flows through the network.

To prototype ideas for the IoE, it helps to have design skills, electrical skills, physical/mechanical skills, programming
skills, and an understanding of how TCP/IP works.

The Cisco Networking Academy helps individuals prepare for industry-recognized certifications and entry-level
information and communication technology (ICT) careers in virtually every type of industry. The Internet of Everything
is creating demand for a broad spectrum of IT jobs, and creating opportunities for exciting new jobs in emerging
fields.