Monday, Oct 12, 2015
Dubai:
Internet of Everything (IoE) has a potential for $5 billion of economic value for the public and private sector companies in Dubai, Cisco’s regional head said on Monday.
Based on the findings from 17 cases, Cisco feels that out of the $4.9 billion, the private sector would have an economic value of $3.7 billion, while public sector would have an economic value of $1.2 billion.
“At Cisco we are focused on smart cities. Our approach is very clear, we first consult and design, second build and integrate and finally operate and optimise,” Ala’a Al Bawab, regional head public sector, Cisco.
The IOE is a $19 trillion global opportunity over the next decade. According to Cisco, private-sector firms can create as much as $14.4 trillion of value while cities, governments and other public-sector organisations can create $4.6 trillion.
The current state of IoE-based public-sector programs is characterised by a high degree of sponsorship and encouragement by national governments. A study estimates that 70 per cent of spending on Smart City projects in 2013 will be focused on energy, transportation, and public safety, and 90 per cent of it will be at least partially funded by national or international governments.
The $4.6 trillion in IoE Value at stake for the public sector is equivalent to about one-third of the expected civilian labour productivity growth over the next 10 years. Worldwide public sector labour productivity increases by around 3 per cent each year. Dividing the civilian value generated each year by the expected annual salary costs provides a 1 per cent improvement annually. The remaining productivity growth is likely due to increased training and use of unconnected assets.
By Siddesh Suresh Mayenkar Staff Reporter
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