amounts of IoT data from connected devices and building infrastructure while simultaneously guaranteeing sensitive information remains private. To do this many factors need to be considered: policy for traffic prioritization, techniques for network partitioning, common APIs and standards, and shared data and security models. Should a smart city network be a shared infrastructure following a public utility model? To what extent do smart city networks need to be open while remaining secure? What open network initiatives do we need to enable building large scale networks for smart cities?

1. IoT In Action
Architecting, Securing & Scaling Applications
Santa Clara, CA | Tuesday, April 4th | 11:30am–12:20pm

2. Digital Disruption Is Changing
Every Facet of Our Lives
4
Under Attack from New Entrants
At Risk for Disruption
Disrupted Business Models
Next ?
© 2017 IHS Markit. All Rights Reserved

3. Connected Devices & New Sensors
Enable New Opportunity
5
What we do
today
What we are working
on now
Where we want
to be
Connect
Devices
Collect
Data
Access
Data
Complex
Analytics
Unique
Value
• Connectivity
• Intelligence
• Sensors
• Storage
• Cloud
• Standards
• Open APIs
• “Big Data” • Realize the true
potential of a
connected society
© 2017 IHS Markit. All Rights Reserved

4. Connected Devices –
Installed Base & Shipment Forecast
6
Source: IHS Markit Factory of the Future Report, November 2016
IoT Devices - Extended Forecast - Installed Base & Shipments
© 2017 IHS Markit. All Rights Reserved

5. 2021 DC Servers $57B,
Driven by New Worldwide Compute Demand
5
DC Server Revenue Forecast by Form Factor
Source: Data Center Server Equipment Quarterly Market Tracker: Regional, March 2017
© 2017 IHS Markit. All Rights Reserved

6. Bare Metal Switching
Continues Long-term Growth
• Bare metal switches to reach 19%
of ports shipped in 2021, up from
10% in 2015
• Maturity of open source switch OS
and orchestration software aids
adoption
• Purpose-built switches to represent
58% of ports shipped in 2021
• Blade switches to represent 14% of
ports shipped in 2021
6
Data Center Ethernet Switch Port Forecast by Switch Type
Source: IHS Data Center Networks Intelligence Service – March 2017
© 2017 IHS Markit. All Rights Reserved

7. SDN and NFV:
3 Distinct Markets
7
Source: IHS Infonetics SDN & NFV Intelligence Service; 2H 2016
© 2017 IHS Markit. All Rights Reserved

8. Majority of Revenue
Is from Existing Segments
8
Carrier NFV Market
Source $B % of 2020 Market Categories
New $1.7 11% NFV: NFV MANO, Outsourced Services
Displaced $2.4 16% NFV: NFVI Hardware
Existing $11.5 74% NFV: VNFs
TOTAL $15.6 100% Total Carrier NFV
Carrier, DC and Enterprise LAN SDN Market
Source $B % of 2020 Market Categories
New $6.9 26%
SDN: Orchestration and Controller, SDN Network Apps,
Outsourced Services
Displaced $2.0 8% SDN: Orchestration and Controller
Existing $17.1 66% SDN: SDN Hardware
TOTAL $26 100% Total Carrier, DC and Enterprise LAN SDN
© 2017 IHS Markit. All Rights Reserved

9. Takeaways
Digital transformation brings disruption
IoT traffic the next big wave
SDN & NFV driving opportunity
$0.95
$15.50
$0.80
$17.30
$0.10
$8.70
0
5
10
15
20
25
30
$0
$5
$10
$15
$20
$25
$30
CY14 CY20
Revenue(US$Billions)
NFV
Carrier SDN
DC and enterprise SDN
© 2017 IHS Markit. All Rights Reserved

10. Cliff Grossner, Ph.D.
Research Director & Advisor
Cloud and DC Research Practice
IHS Markit
+1 408.583.3385
Cliff.Grossner@ihsmarkit.com
@cliffgrossner | @IHS4Tech
Liz Cruz
Associate Director
Cloud and DC Research Practice
IHS Markit
+1 512 582 2028
Liz.Cruz@ihsmarkit.com
@IHS4Tech

11. Ritch Dusome
President & CEO
CENGN

12. Bruce Gregory
CEO, CORSA

13. Ali Tizghadam
Technology Strategy Manager
TELUS

14. Jason Venner
VP, Engineering for Contrail
Juniper Networks

15. Mathieu Lemay
CEO, Inocybe Technologies