Smart Cities

MarketLine Case Study
Smart Cities
Cisco's quest for dominance of
tomorrow's cities
Reference Code: ML00019-016
Publication Date: June 2015
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Cisco Smart City Case Study

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OVERVIEW
Catalyst
The term 'smart city' has become something of a buzz phrase recently, particularly in the technology industry, but what
exactly are smart cities? How can they be defined? Can they even be defined at all? One company that is keen to bolster
demand and enthusiasm for such projects is Cisco Systems, Inc. (Cisco), which has a lot to gain from the burgeoning
industry given its position in the networking and IT sectors. This case study looks at the concept of a smart city, where
the greatest opportunities lie for the development of such cities and how Cisco has already positioned itself at the
forefront of the nascent smart city industry through involvement in existing developmental projects, strategic partnerships
and a growing product lineup.
Summary
There is no hard definition of what constitutes a smart city, but a distinction can be made regarding digitally
connected cities, within which a combination of strong, up-to-date city-wide communication infrastructure, large
volumes of connected devices and data analysis is used to co-ordinate, plan or even automate municipal
processes.
Major global driving forces behind smart cities include rapid urbanization of populations, as well as restricted
municipal resources. While opportunities exist in mature economies by way of city infrastructure upgrades and
digital implementations, it is emerging economies, such as India, that hold the greatest potential for growth and
plans have been announced in the country to build 100 of such connected, smart cities from the ground up by
2022.
Cisco's status as a leading player in the networking field puts it in a strong position in the smart city value chain,
with the communication network acting as the vital link, and further existing involvement in Big Data solutions
may mean that it will be able to occupy more than just one stage in the smart city value chain.
It is likely that Cisco will face stiff competition in the smart city industry from the likes of the newly-merged
Alcatel-Lucent and Nokia Networks, as well as Chinese player Huawei.
Cisco already offers a number of smart city solutions, covering a number of applications, under its
'Smart+Connected City' banner that have been developed into end-to-end solutions through collaboration with a
number of technological partners. These solutions have already been implemented by Cisco in a number of
high-profile, future-focused cities, in turn aligning the Cisco brand with actioned smart city initiatives, rather than
just the conceptualization of such technologies.
Cisco's significant involvement with Songdo in South Korea perhaps the most famous example of a smart city
built from scratch further aligns the Cisco brand with the nascent smart city industry and presents an
opportunity for Cisco to promote both its existing and conceptual products and services.

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TABLE OF CONTENTS
Overview ............................................................................................................................................................................. 2
Catalyst............................................................................................................................................................................ 2
Summary ......................................................................................................................................................................... 2
Smart, connected cities have strong growth potential ......................................................................................................... 6
Difference between smart and digitally connected cities ................................................................................................. 6
Digital connections and devices crucial, but form only part of what makes cities smart ............................................... 6
Internet of Things necessitates Big Data solutions....................................................................................................... 7
Smart Cities driven by expanding urban populations and limited resources .................................................................... 7
Rapid global urbanization in recent years .................................................................................................................... 7
Limited resources necessitate economical and sustainable strategies ........................................................................ 9
Two options for smart city development .......................................................................................................................... 9
Smart initiatives can transform mature cities into smarter cities ................................................................................. 10
Developing countries hold potential for all-new smart city development .................................................................... 10
Cisco already force in the industry .................................................................................................................................... 11
Cisco in prime position to capitalize on smart cities ....................................................................................................... 11
Cisco already leading networking player .................................................................................................................... 11
Ciscos Data Center and wireless products fastest growing ....................................................................................... 12
IoE and Fast IT key to Cisco's future growth prospects ............................................................................................. 13
Cisco has partnerships with other key smart city players .............................................................................................. 14
Partnerships already key part of Cisco's strategy ...................................................................................................... 14
Cisco's existing partners also involved in smart cities ................................................................................................ 15
Cisco will still face stiff competition in smart city networking .......................................................................................... 16
Nokia Networks and Alcatel-Lucent deal creates substantial networking competitor ................................................. 16
Other large players interested in smart city industry .................................................................................................. 16
Aligning Cisco brand with smart cities ............................................................................................................................... 17
Cisco already offers smart city solutions........................................................................................................................ 17
Cisco's Smart+Connected City services cover range of applications ......................................................................... 17
Cisco's partnership with AGT enables Cisco to offer integrated smart city solutions ................................................. 18
Cisco has made further partnerships in specialized hardware and applications ........................................................ 19
Cisco has employed smart city solutions in multiple highprofile, existing cities ........................................................... 20
Cisco signed smart city agreement with Barcelona, global leader in smart city progress .......................................... 20
Cisco's partnership with Copenhagen represents further involvement with smart city leader .................................... 20
Hamburg represents further opportunity for Cisco to demonstrate and refine smart city solutions ............................ 21

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Songdo, Korea City of the Future? ............................................................................................................................. 21

Cisco key investment partner in Songdo .................................................................................................................... 21
Songdo offers cisco opportunity to showcase smart city and existing products ......................................................... 22
Conclusions....................................................................................................................................................................... 24
Cisco has established itself as smart city leader ........................................................................................................... 24
Appendix ........................................................................................................................................................................... 25
Definitions ...................................................................................................................................................................... 25
Sources ......................................................................................................................................................................... 25
Further Reading ............................................................................................................................................................. 28
Ask the analyst .............................................................................................................................................................. 29
About MarketLine .......................................................................................................................................................... 29
Disclaimer ...................................................................................................................................................................... 29

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TABLE OF FIGURES
Figure 1: Urban population as a percentage of total population by region, 1990-2020, % .................................................. 8
Figure 2: Urban population in Asia-Pacific and Europe, 1990-2020, million ........................................................................ 9
Figure 3: Cisco total revenue, FY2010-14, $bn ................................................................................................................. 12
Figure 4: Cisco revenue by product type (Switching, NGN Routing, Data Center, and Wireless), FY2010-14, $bn ......... 13
Figure 5: Many of Cisco's strategic partners will likely have a role to play in the smart city industry ................................. 15
Figure 6: Cisco Smart+Connected City Parking high level architecture ............................................................................ 18
Figure 7: AGT and Cisco City Safety Solution high level architecture ............................................................................... 19
Figure 8: Songdo IBD development .................................................................................................................................. 22
Figure 9: Cisco TelePresence system in Chadwick International School, Songdo ............................................................ 23

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SMART, CONNECTED
GROWTH POTENTIAL
CITIES
HAVE
STRONG
There is no hard definition of what constitutes a smart city, but a distinction can be made regarding digitally connected
cities, within which a combination of strong, up-to-date city-wide communication infrastructure, large volumes of
connected devices and data analysis is used to co-ordinate, plan or even automate municipal processes. The automation
or digitization of such processes will lead to a new value chain, starting with the manufacture and supply of smart
connected devices (i.e. sensors), moving to the deployment and management of the communication network that
connects such devices, the management and analysis of the data produced by such devices and then, finally, the
company that would act on the analysis produced (i.e. utility and waste management companies). Major global driving
forces behind smart cities include rapid urbanization of populations, as well as restricted municipal resources. While
opportunities exist in mature economies by way of city infrastructure upgrades and digital implementations, it is emerging
economies, such as India, that hold the greatest potential for growth and plans have been announced in the country to
build 100 of such connected, smart cities from the ground up by 2022.
Difference between smart and digitally connected cities

It is often tempting to bunch rapidly progressive industry movements and trends under one broad term, but such
synecdochical tendencies have confused the definition of what it means to be a smart city. Although the term is broadly
used by tech companies looking to drive the world's advancement towards such municipalities, there remains confusion
over what is actually meant by the term 'smart city'. The rapidly expanding Internet of Everything (IoE) has led to a
situation where a high volume of connected devices, such as sensors, smart meters, surveillance cameras and even
household appliances can send data between each other, or to data servers and data centers, via the Internet. It is these
that can be considered as a facilitative force behind the concept of a smart city, but not the absolute driver, and it would
be wrong to assume that the presence of such connected digitization is enough to earn the moniker of smart city.
Instead, what many people would consider as a 'smart city' should actually be termed as a 'digitally connected city' which
feature certain smart, connected technologies and processes, but lack the other necessary ingredients and aims such
as a sustainable waste management system or efficient public transport to be considered to be fully 'smart'.
Digital connections and devices crucial, but form only part of what makes cities
smart
While the term 'smart city' is frequently used, it is important to note that it does not have one standard definition and,
depending on the context, can come to mean a number of things. However, it can be asserted that, while a large number
of considerations are required to make a city 'smart', one thing is essential to the contemporary concept of a smart city:
communications infrastructure.
In a 2012 academic paper, Chourabi et al. discussed the fact that the concept of the smart city was still emerging and
that its definition was, essentially fluid with the meaning of the term being altered significantly by context or even
according to who was using it. The main aim of a smart city is to make itself more 'livable' for residents and more
sustainable for local authorities to run. This can be achieved by analyzing the data produced by a wide variety of sensors
and connected devices, which monitor a wide variety of stimuli (water pH levels, traffic congestion, power usage, etc.) to
produce more efficient and useful municipal services and, in some cases, even allow residents to monitor aspects of the
city themselves.

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Upon reviewing various definitions, Chourabi et al. liken the smart city to a living organism, and that the collective
'intelligence' of a city "resides in the increasingly effective combination of digital telecommunication networks (the
nerves), ubiquitously embedded intelligence (the brains), sensors and tags (the sensory organs), and software (the
knowledge and cognitive competence)".
It is not enough to say that such a combination instantly results in a city becoming smart. On the contrary, the smartness
of a city will be dictated by the initial aims of the utilization of such a connected, communicative system without a
specific goal in mind, the implementation of digital sensors would be as useless as if those sensors were not connected
to anything at all, for instance. While such a point exemplifies the importance that a fully connected, reliable and up-todate telecommunications network has in the concept of the smart city, it is but one albeit crucial cog in the machine.
Internet of Things necessitates Big Data solutions

The amount of data that would be produced by the plethora of monitored connected devices in a smart city will certainly
go beyond the capacity of conventional data management, spilling into the realms of Big Data management and analysis.
Again, the term of Big Data does not really mean much on its own, but should be viewed simply as a contemporary way
to store, query and model information, much like a new Microsoft Excel for the Internet age, as defined in Big Data: A
road map for business intelligence (February 2015, ML00019-004). The crucial thing to consider here is that, although
feasible due to the open-source nature of Big Data software, municipalities would find it difficult to establish their own
software solutions for the management and analysis of the data produced by the swathe of connected devices in a smart
city. As such, it is very likely that any smart city would require a Big Data solution from a leading software provider in
order to be able to gain the required insight necessary to improve or automate municipal services, in turn adding another
link in the smart city value chain.
In general, data traffic is already growing at a significant rate. Cisco, for instance, estimates that annual global IP traffic
will expand with a compound annual growth rate (CAGR) of 21% between 2013 and 2018 to reach 1.1 zettabytes (ZB equivalent to 1 billion terabytes). To put this into perspective, this figure is 64 times the volume of the entire global
Internet in 2005. It is worth noting that this figure is a general one, and cannot be directly used to demonstrate the impact
of the IoE on Internet data traffic.
However, Cisco also estimates that monthly machine-to-machine (M2M) Internet traffic is set to grow at a CAGR of 84%
between 2013 and 2018, reaching a total of 7.3 exabytes (EB equivalent to 1 million terabytes) per month, making it the
fastest growing segment of the sector. As a result, monthly M2M Internet traffic will account for 3.7% of total Internet
traffic in 2018, up from 0.5% in 2013. Crucially, Cisco cites "video surveillance, smart meters, smart cars, asset and
package tracking, chipped pets and livestock, digital health monitors, and a host of other next-generation M2M services"
as key drivers of this growth. Many of these devices have a part to play in the establishment of smart cities.
Smart Cities driven by expanding urban populations and

limited resources
The large number of individual reasons for the establishment of smart cities be they economic, environmental or
logistical in scope will likely differ between cases. However, on a global scale, mass urbanization of populations are
driving the smart city movement as municipalities aim to operate in the most efficient manner possible, while ensuring
that they remain livable in order to retain talented individuals and companies. Furthermore, limited resources, coupled
with rapidly expanding urban populations, are driving the need for municipalities to become more efficient and
economical in the deployment and utilization of energy, utilities and even public financial resources.
Rapid global urbanization in recent years

Populations across the world are becoming rapidly urbanized, especially in less mature regions, such as Asia-Pacific,
where large countries with vast landscapes are beginning to see rural populations migrate towards more centralized,
densely populated areas.
As can be seen in Figure 1, the global (as defined by MarketLine, see Definitions) urban population has already
surpassed the global rural population.

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Furthermore, in developed regions, such as Europe, the urban population already represents over 75% of the total,
compared to around 47% in the Asia-Pacific region.
Figure 1: Urban population as a percentage of total population by region, 1990-2020, %

Asia-Pacif ic
Europe
Americas
MEA
Global
90%
Urban % of Total Population
80%
70%
60%
50%
40%
30%
20%
10%
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
0%
SOURCE: MarketLine
MARKETLINE
By way of contrast, when looking at absolute population figures, a far different picture emerges. In fact, in 2014, the AsiaPacific urban population was already three times larger than the European urban population, and this is set to rise to
almost four times by 2020. In 2020, the Asia-Pacific region is expected to account for around 57% of MarketLine's global
urban population figure, up from just over 46% in 1990.
As such, it is the emerging Asia-Pacific region, which contains population powerhouses China and India, that is seeing
the greatest level of absolute urbanization and it is therefore expected that they may hold the greatest opportunity for
companies looking to capitalize on the movement to smart cities.

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Figure 2: Urban population in Asia-Pacific and Europe, 1990-2020, million

Asia-Pacif ic
Europe
Urban Population (million)
2,500
2,000
1,500
1,000
500
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
SOURCE: MarketLine
MARKETLINE
Limited resources necessitate economical and sustainable strategies

The upshot of rapid urbanization is that existing cities are becoming overpopulated and existing infrastructure and
municipal services i.e. transport, energy, law enforcement and healthcare systems are becoming overburdened,
reducing their livability.
Urbanization is, however, a double-edged sword: rapid population growth can bring economic growth and prosperity to a
city, making it an attractive place to do business. In essence, cities will almost always want to grow in the right way by
attracting big business and talented individuals but to ensure this the city must remain livable and sustainable, ensuring
that municipal services are run in an efficient manner and are able to cope with an increasing population.
The advent of Big Data analytics and the IoE presents city authorities with an as yet unobtainable opportunity to
comprehensively plan and maximize the efficiency of the services that facilitate desirable living and working conditions
within their boundaries of operation. It also allows for utilities providers to efficiently manage the supply of energy and
water to municipal areas which should, theoretically, lead to cost savings and largely eliminate oversupply and wastage,
in turn improving sustainability and ensuring that limited resources can cope with a city's rapid population growth. While
this may equally curtail revenues through very efficient utility supply, this would be of little concern for providers
government-led sustainability drives mean that players already face pressure to drive the adoption of environmentallyfavorable technologies and solutions, so it will be the most efficient suppliers that win contracts. In addition, data analysis
solutions and the necessary communications infrastructure will play a vital role in the movement towards such solutions,
in turn essentially creating a new municipal digital utility.
Two options for smart city development

Two distinct opportunities exist for companies looking to capitalize on the nascent smart city industry. The most likely
scenario in mature, densely populated countries would involve existing cities, such as London, Barcelona and Chicago,
which can in effect be 'upgraded' with smart initiatives and technological installations.

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A second possibility involves the establishment of wholly new cities which could be planned and designed with the IoE
and smart initiatives in mind, effectively built from the ground up with infrastructure designed with the digital, rather than
industrial, age in mind. It is the second option that may prove the most tempting for companies looking to occupy more
than one stage in the smart city value chain, as it would give them a chance to embed their products and services into
the fabric of a city at its establishment stage.
Nevertheless, the smart city industry is expected to grow into a trillion dollar industry over the next few years, and
therefore offers significant expansion opportunities for companies concerned.
Smart initiatives can transform mature cities into smarter cities

The first option for the creation of smart cities involves the upgrading of existing cities, in terms of communications
infrastructure, the deployment of connected 'things' and data and analytics platforms to bring about smart initiatives. This
could mean: smart grids being employed by utilities providers to manage utility consumption in order for the city to
become more cost and energy efficient; next-generation surveillance cameras and sensors being deployed and
connected in order to monitor and prevent crime; smart lighting solutions being rolled out that optimize city lighting, thus
saving energy; or even revolutionized public transport payment and operational systems, such as London's Oyster
contactless payment system.
Such developments are likely to first come to large, developed cities in more mature economies and, as such,
municipalities looking to upgrade in this way are likely to already have a decent digital communications infrastructure.
However, it is also likely that additional resources and upgraded infrastructure would be required to handle the increase
in data traffic that a connected city would bring. Further opportunities would also exist in relation to the management of
smart services and platforms, which also offer the prospect of recurring revenue generation for companies looking to
capitalize on the movement towards smart cities.
Developing countries hold potential for all-new smart city development

While many countries with advanced economies, such as those in Western Europe, might not have significant population
growth or enough land space to establish new municipalities, the same cannot be said for emerging economies, such as
India and China, where boisterous population growth, coupled with extensive landmass, means that there exists demand
for new smart cities that can be designed and built from the ground up.
In such cities, everything from road layout to utility supplies and, perhaps most importantly, digital ICT infrastructure, can
be planned with the IoE and smart initiatives in mind. As such, they offer the greatest opportunities for companies to
maximize their capitalization on the movement towards smart cities, and any technology or networking company that is
able to get involved early in the development stage stands a chance of becoming embedded within the city's framework,
especially if it offers end-to-end solutions, which could prove especially lucrative should players be able to monetize their
own installations by moving to a recurring managed service model in the future.
Critically, such cities are likely to drive the value of the smart city industry over the coming years. For instance, Indian
Prime Minister Narendra Modi announced plans to build 100 smart cities in India by 2022 at an estimated cost of around
$1tn, although the feasibility and scope of such an ambitious project remains to be seen. It is nevertheless imperative
that companies hoping to capitalize on the burgeoning smart city industry establish themselves early in the industry's life
cycle, aligning their brand and products with initial smart city establishments and solutions. Failure to do so at this
embryonic stage could prove disastrous and significantly hamper any potential players' ability to gain a foothold in the
industry at a later stage.

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CISCO ALREADY FORCE IN THE INDUSTRY

Cisco's position as a leading player in the networking field puts it in a strong position in the smart city value chain, with
the communication network acting as the vital link, and further existing involvement in Big Data solutions may mean that
it will be able to occupy more than just one stage in the smart city value chain. The company has already employed
strategic partnerships with major IT companies in a bid to offer end-to-end network/IT solutions in the past, and it looks
like Cisco will continue this strategy in its pursuit of the nascent smart city market. It is, however, likely that Cisco will face
stiff competition in the smart city industry from the likes of the newly-merged Alcatel-Lucent and Nokia Networks, as well
as Chinese player Huawei.
Cisco in prime position to capitalize on smart cities

With digital communication networks acting as the key to smart, connected cities, networking powerhouse Cisco is
perhaps in as good a position as any to capitalize on the nascent smart city industry. While Cisco's switching networking
hardware continues to serve as the company's most valuable segment, it does have a growing data center segment,
which puts it in a position to enjoy a unified position across multiple points in the smart city value chain.
Cisco already leading networking player

Cisco already enjoys a very strong, almost dominant position in the enterprise Ethernet switching and router markets,
and its Switching and Next-generation network (NGN) Routing segments accounted for 46% of the company's total
revenues in the financial year ended July 2014 (FY14). However, with these two markets and Cisco's corresponding
segments experiencing sluggish growth, this will be a significant cause for concern for the company. Cisco's ability to
capitalize on the burgeoning smart cities industry is therefore of paramount importance, as it has the potential to
significantly boost the company's networking hardware business.
In fact, the companys overall revenues declined in FY2014 after years of consecutive growth and, although the
Switching and NGN Routing segments were not the worst performing segments, they both declined significantly during
the year. The company is also feeling pressure from key competitors, such as Alcatel Lucent, which is set to become a
much stronger threat following its upcoming merger with Finland-based Nokia, which was announced in April 2015. This
combined entity will also be a significant threat to Cisco in the smart cities space, should the deal be approved and
completed and, in its FY14 annual report, the company lists industry consolidation as a key risk factor to its business.

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Figure 3: Cisco total revenue, FY2010-14, $bn

39
38
Revenue ($bn)
37
36
35
34
33
32
31
30
29
FY2010
FY2011
FY2012
FY2013
SOURCE: Cisco
FY2014
MARKETLINE
Ciscos Data Center and wireless products fastest growing

While Ciscos Switching and NGN Routing segments did not fare so well in the companys most recent financial year, it
should be noted that the company's Data Center revenues have performed very strongly year on year, growing with a
compound annual growth rate (CAGR) of 91.6% between FY2010 and FY2014. Furthermore, the company's Wireless
products have also seen growth, with revenues growing with a CAGR of 18.9% between FY2010 and FY2014. Crucially,
the company's core Data Center offering, the Cisco Unified Computing System (UCS), is a key component of Ciscos
smart city systems something that will be covered in further detail later in the report and Cisco's Wireless product
revenues could also be bolstered by the creation of smart cities and integrated communication networks. As the
company anticipates growth in these segments to get weaker as Cisco's enterprise market penetration increases, such
an expansion opportunity will increase in importance.

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Figure 4: Cisco revenue by product type (Switching, NGN Routing, Data Center, and Wireless), FY2010-14, $bn
Switching
NGN Routing
Data Center
Wireless
16
14
Revenue ($bn)
12
10
8
6
4
2
0
FY2010
FY2011
FY2012
SOURCE: Cisco
FY2013
FY2014
MARKETLINE
Critically, what Ciscos Data Center segment and UCS offering represent is an integrated approach to enterprise data
solutions, encompassing network infrastructure, hardware, and software and management, as evidenced by the
description of the offering included in Ciscos FY14 annual report:
"The Cisco Unified Computing System (UCS) unites computing, networking, storage,
management, and virtualization into a single fabric-based platform designed to simplify
operations and provide business agility through rapid deployment and scaling of application
infrastructure. UCS is specifically designed for virtualization and automation and enables ondemand provisioning from shared pools of infrastructure across physical and virtual
environments."
So, in essence, the UCS is Cisco's Big Data solution, which brings Cisco's existing products and services together into
one converged service and product.
Although the company's Data Center revenues have been the company's fastest growing over the past few years, Cisco
expects that its revenue growth in this product area will begin to "experience more normal seasonality consistent with the
overall server market" something that certainly proved to be true in Q1 FY2015, when the company's Data Center
revenues saw quarterly decline compared to Q4 FY2014.
IoE and Fast IT key to Cisco's future growth prospects

The rapidly expanding IoE, which is facilitating the emergence of digitally connected cities, is something that Cisco is
looking to for future growth. The fact that the company sees this as the effective future of the Internet upon which its
business is almost wholly reliant means that Cisco is starting to focus on an integrated and converged ICT service
model: "Fast IT".
The company's anticipation of the importance of the IoE and, subsequently, Fast IT-based products and services, is
highlighted in Cisco's FY14 annual report:
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"We believe that that the next wave of dramatic Internet growth will come through the
confluence of people, process, data, and things, which we refer to as the IoE. We believe
that IoE, by bringing everything online, will create significant opportunities for businesses,
governments and other organizations to obtain greater value from networked connections.
IoE is being driven by several factors. Along with the anticipated proliferation in the number
of network-connected things, we believe customers are seeing that significant technology
trends and advances make it possible to realize more value from connectedness. IoE also
reflects the ability to create intelligenceand capture intelligence fasterfrom these
connections, which is why we believe that IoE has the potential to be a pivotal market
transition that can offer significant economic and societal benefits on a global basis. Helping
our customers take advantage of IoE, in our view, requires enabling them to address several
of the other major technology transitions driving the IoE, such as virtualization, application
centricity, cloud, and mobility. We believe our customers need a new model for IT that
addresses the requirements that these transitions place on IT. We call this model that unifies
infrastructure, platform, and applications Fast IT. By delivering architectures and solutions
based on Fast IT, we aim to help our customers reduce complexity, accelerate service
deployment, and increase security in a world that is increasingly virtualized, application
centric, cloud-based, and mobile."
So, clearly Cisco is betting big on the IoE and, given its practically integral role in the functioning and establishment of
smart cities, the company is therefore setting the burgeoning smart cities industry in its sights. Importantly, Cisco sees
itself as an integrated player in the IoE, with interests in networking hardware, data storage and server operations and
applications, meaning that it has more to gain from the smart cities market than a pure-play manufacturer of networking
equipment would, for instance. Indeed, Cisco enjoys the diversification and product and service scope to offer an
integrated service to municipalities and the smart city industry has the potential to boost almost all of the company's
existing product revenue streams, from networking equipment to data security and even its communication software.
Cisco has partnerships with other key smart city players

Strategic partnerships have long been employed by Cisco in order to provide end-to-end solutions. Notably, a number of
its strategic partners also serve as competitors and also have a keen interest in the smart city industry. However, such
partnerships enable Cisco to offer integrated solutions, combining the data management and analytical expertise of
certain rivals with its strong standing in the networking market a perfect combination for the implementation of smart
city initiatives.
Partnerships already key part of Cisco's strategy

In order to bolster the appeal of its products and services, Cisco has formed strategic partnerships with major technology
powerhouses, including IBM, Microsoft, Samsung and Oracle. Notably, most of the companies with which Cisco has
partnerships have a significant involvement in data storage, management and analysis which, in combination with Cisco's
hardware and networking products, should provide a strong foundation for the formation of connected, complete IT and
networking solutions. Essentially, this partnership strategy enables Cisco to expand and augment its product and service
lineup rapidly, in turn responding to new industry developments. Furthermore, it also allows the company to reduce the
pressure of competition from a number of potential rivals, whose activities have a degree of overlap with those of Cisco
following the increasing integration between information technology (IT) and networks.
It could be argued that Cisco itself is emblematic of this converged, IT-Network chiasma, as it goes beyond merely
offering network connectivity to its clients. In order to do this, Cisco has exploited strategic alliances with the likes of IBM
to bring unified, connected services and products to its offering.

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The advantages of this are two-fold. Firstly, it enables the company to benefit from the image of not one but two industryleading brands, a major ploy when seeking new customers. Secondly, and perhaps more importantly, it enables Cisco to
benefit from its partners' expertise and existing IT solutions, without the need to invest in extensive research and
development in order to produce its own competing offering in the same space as its already established, well-known
partners.
Cisco's existing partners also involved in smart cities

Of the 18 strategic partners that Cisco names on its website, three are listed as either lead or associate partners by the
Smart Cities Council, an association of companies looking to drive the smart city sector forward. With Cisco also serving
as a lead partner of the council, it is highly likely that the company's strategic alliances will carry over beyond the
company's typical enterprise networking and IT market, and into the practically uncharted waters of the smart city
industry.
The three partners in question include IBM, Oracle and Intel significant players in the IT industry but, although only
these three are affiliated with the Smart Cities Council, they are not the only partners of Cisco that have a degree of
involvement in the smart city space. For example, Capgemini entered the smart city sector as early as 2011 through such
initiatives as digitizing the ticket system of Syndicat des Transports dle-de-France, which operates the public transport
network for Paris and the greater le-de-France region in France. Furthermore, Accenture is already involved in smart
grid deployment in cities, as well as managing smart grid integration processes and analyzing the data generated by
such systems.
In fact, by the very nature of their businesses, it is highly likely that the majority of Cisco's partners will become involved
in the smart city industry in some guise, which gives Cisco the opportunity to continue to employ its strategic alliances in
a new, yet ostensibly similar, nascent industry.
Figure 5: Many of Cisco's strategic partners will likely have a role to play in the smart city industry
SOURCE: Cisco

MARKETLINE
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Cisco will still face stiff competition in smart city networking

While Cisco should be able to ameliorate any potential encroachment from its partners in the smart city space, it is
important to note that the company is not alone in its pursuit of gaining a foothold in the smart city industry. A number of
large-scale competitors, such as the newly combined Nokia Networks and Alcatel-Lucent, and Huawei Technologies will
also seek to offer extensive smart, integrated network solutions to municipalities. It is therefore important for Cisco to
quickly establish itself as a leading player in the smart city industry and get its nose in front of competitors in order to
capitalize on the smart city movement on a large-scale, recurring basis.
Nokia Networks and Alcatel-Lucent deal creates substantial networking competitor

Two of Cisco's major networking competitors, Nokia Networks and Alcatel-Lucent, announced that they were to combine
in April 2015 to form a company that "will be uniquely positioned to create the foundation of seamless connectivity for
people and things wherever they are." Crucially, both companies have already expressed interest in the smart city
communication infrastructure.
Notably, the resulting new entity will be able to operate on a much larger scale than either individual company had
previously: the combined company will have more than 40,000 R&D employees and spent EUR4.7bn (approximately
$6.2bn) on R&D in 2014. This puts it practically on par with Cisco, which spent around $6.3bn on R&D in 2014.
Nokia Networks is also involved in the advancement of 5G wireless services, which are set to succeed 4G mobile
services over the coming years, and the company expects these to serve as a key platform in the connected IoT a key
component behind the concept of a smart connected city.
Alcatel-Lucent also has an involvement in the smart city industry, together with 'specialized partners in a similar manner
to Cisco. Services offered by the company include 'ultra-broadband' access, IP routing and transport solutions, machineto-machine (M2M) communications controllers and cloud technologies.
Other large players interested in smart city industry

Unsurprisingly, the potential held by the smart city industry has caught the attention of a number of other networking
companies, who are also looking to gain a strong position. Huawei, for instance, claims that its 'Smart City Solution' is
"the most extensive product line in the industry", and that it has "provided Smart City solutions for 60+ cities in 20+
countries and regions. Smart City includes Smart Government, Safe City, Smart Emergency Command, Smart Food
Quality Control, Smart Transport, Smart Hospital, Smart Education, Smart Grid, Smart Enterprise, and Smart Tourism."
Given the company's similarity to Cisco in terms of potential vertical integration within the industry (the company provides
integratable ICT products and solutions including enterprise network infrastructure, cloud-based green data centers,
enterprise information security and unified communication and collaboration), Huawei can be seen as one of, if not the
biggest of Cisco's smart city competitors.
With Huawei claiming such an advanced and extensive product and solution lineup, coupled with the fact that its
technology is already present in a number of cities worldwide, it is imperative for Cisco to offer its own comprehensive
smart city line of products and services if it is to stand a chance of being the go-to company for municipalities looking for
smart solutions.

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ALIGNING CISCO BRAND WITH SMART CITIES

Cisco already offers a number of smart city solutions, covering a number of applications, under its 'Smart+Connected
City' banner that have been developed into end-to-end solutions through collaboration with a number of technological
partners. These solutions have already been implemented by Cisco in a number of high-profile, future-focused cities, in
turn aligning the Cisco brand with actioned smart city initiatives, rather than just the conceptualization of such
technologies. Furthermore, Cisco's significant involvement with Songdo in South Korea perhaps the most famous
example of a smart city built from scratch further aligns the Cisco brand with the nascent smart city industry and
presents an opportunity for Cisco to promote both its existing and conceptual products and services.
Cisco already offers smart city solutions

While many other potential smart city players remain at an early stage of planning or implementation, Cisco, like Huawei,
currently already advertises a wide range of smart city products and services, which fall under the company's
'Smart+Connected City' banner. With such applications including parking solutions, lighting solutions and city Wi-Fi,
among other services, Cisco is already establishing itself as the go-to, one stop shop for smart city solutions, which could
help it achieve a dominant position early in the industry's life cycle. Unsurprisingly, the company has developed its smart
city solutions in collaboration with a number of partner organizations, with Cisco providing the communicative backbone
while its partners supply specialized hardware and analytical processes.
Cisco's Smart+Connected City services cover range of applications

The solutions that make up Cisco's Smart+Connected City suite are wide-ranging in their applications: the company's
systems can be used to analyze and interpret data in order to automate or digitize a number of municipally-applicable
processes, such as parking management, lighting operation, traffic management, crime prevention and security.
Crucially, the company's solutions in these areas rely on city-wide communications infrastructure something that Cisco
is more than happy to provide under the Smart+Connected City Wi-Fi banner, a service that the company describes as
the "foundational infrastructure of the Internet of Everything (IoE) for cities".
For instance, Cisco's Smart+Connected City Parking solution uses sensors and Cisco IP Cameras, which are connected
to data centers through Cisco's Smart+Connected Wi-Fi. The data collected from these sensors can be analyzed in order
to monitor and provide an overview of the availability of parking in the city, which can then be sent to citizens and parking
enforcement authorities to enable parking management. As can be seen from Figure 6 below, Cisco's City Wi-Fi forms an
essential part of such a system's high level architecture.

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Figure 6: Cisco Smart+Connected City Parking high level architecture
SOURCE: Cisco
MARKETLINE
The situation is similar for the rest of Cisco's Smart+Connected City solutions unsurprising given Cisco's position in the
networking sector and, although one could argue that the Wi-Fi connection is just one part of the chain, it is perhaps
the most important. Without a network infrastructure that can handle the swathes of data that will likely be produced by
sensors and other connected devices in smart cities (sensors used in Cisco's Smart+Connected City Lighting solution
can monitor 'levels of humidity, CO2/O2, UVA/UVB, particulate matter, motion and seismic activity, video, sound, and
more') the notion of a smart, connected city essentially disappears.
The fact that Cisco is already positioning itself and, perhaps more importantly, its network infrastructure as the
centerpiece of such a variety of end-to-end smart city solutions is indicative of the company's desire to cement its
position as a leader in the smart connected city industry. Cisco not only wants to drive the industry forward, but also
towards its own products and services, and getting its nose ahead of competitors early with its complete solutions is as
good a way as any to do this.
Cisco's partnership with AGT enables Cisco to offer integrated smart city solutions
Although Cisco is able to easily extend a number of strategic partnerships to the smart city space, it is worth noting that it
has not shied away from forming new strategic alliances that are focused on smart city initiatives. In fact, in February
2014, the company announced that it had formed a 'Smart City Global Strategic Alliance' with AGT International (AGT), a
Swiss technology company providing analytics and prediction software solutions that 'connect to a wide variety of devices
and sensors, including social media'. Crucially, the partnership essentially sees Cisco's networking, cloud services and
data center operations married with AGT's predictive analytical platform to produce an end-to-end solution, through from
data collection to analytical output.
Presently, this end-to-end system is currently offered by Cisco and AGT in the areas of city safety and security, as well
as city traffic monitoring. Here, the focus is on the solution's ability to enable municipal authorities to identify events that
could impact safety early and, in some cases, before they have happened through data analysis and AGT's CityMIND
platform, enabling them to act quickly to reduce potential casualties or criminal activity.
Again, this partnership represents Cisco's strategy of collaboration between itself and complementary industry players,
leveraging each company's core strength and products, in order to provide a solution that occupies all stages in the smart
city value chain i.e. from sensors and detection, to data transfer and network communication, through to data analysis
and output early in the smart city industry's life cycle.

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Figure 7: AGT and Cisco City Safety Solution high level architecture
SOURCE: Cisco
MARKETLINE
Cisco has made further partnerships in specialized hardware and applications

While the company's new partnership with AGT is perhaps its largest strategic partnership in the smart city space so far,
Cisco has also integrated a number of other companies' specialized and ready-made products and services into its
Smart+Connected City suite of solutions. Again, this represents Cisco's desire to establish itself as an early provider of
end-to-end solutions, rather than as just another cog in the smart city machine while reducing the need for new product
development.
Cisco's Smart+Connected City Parking solution, for instance, sees the company partner with Streetline, a highly
specialized company that focuses on smart parking products, such as parking sensors, a citizen parking guidance
application and an application to help parking enforcers monitor parking violations.
Additionally, Cisco's Smart+Connected City Lighting solution uses Sensity Systems' NetSense sensor nodes and
platform to create its Light Sensory Network (LSN). This partnership was announced in November 2014, seven months
after Cisco announced its partnership with AGT, showing that Cisco is willing to keep forming new partnerships in its
efforts to anchor itself in the burgeoning smart city industry.

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Cisco has employed smart city solutions in multiple high

profile, existing cities
With its closest rival Huawei claiming multiple existing smart city installations in its marketing material, it is imperative for
Cisco to consolidate its position by drawing attention to its own existing smart city services. The company has, indeed,
drawn attention to its own smart city installations, including those in Barcelona (Spain), Copenhagen (Denmark), and
Hamburg (Germany). No single city project that Cisco has been involved in has, however, represented a true
transformation into what would be termed a 'smart city'. Rather, they essentially represent an experimental ground for
Cisco to develop and conceptualize new technology and solutions while, simultaneously, aligning its brand with
progressive, forward-looking municipalities.
Cisco signed smart city agreement with Barcelona, global leader in smart city
progress
Cisco signed an agreement with Barcelona's city council to bring the Smart+Connected platform and solutions to the city
as early as March 2011. Crucially, the city's Smart City Barcelona project is one of the most advanced in the world, and is
involved in creating smart solutions in 12 main areas: environmental, ICT, mobility, water, energy, matter (waste), nature,
built domain, public space, open government, information flows, and services. Cisco's involvement with the city's Smart
City Barcelona initiative, which was set up with the aim of making Barcelona a 'reference model for sustainable urban
development', might not be as comprehensive as the company may like, but it positions its brand alongside one of the
trailblazing municipalities in the smart city industry.
Furthermore, in July 2014, Cisco announced that it was set to open a Global IoE Innovation Center in Barcelona, in
conjunction with the Barcelona City Council, which the company says will "provide a platform for research, technological
development and new market opportunities related to the Internet of Everything for smart cities". The center, which is set
to open in summer 2016 and is expected to see $30m of investment from the company, further represents Cisco's
determination to be viewed as a pioneer in the smart city industry. Unsurprisingly, the center will also feature a live
showcase area for Cisco's Smart+Connected Communities solutions, "demonstrating their practical implementation and
ability to improve citizens' quality of life".
Cisco's partnership with Copenhagen represents further involvement with smart city
leader
In May 2014, Cisco announced that it was entering into partnership with the municipalities of Copenhagen, Albertslund
and Frederikssund in Denmark which would, to quote the company, "research and develop tomorrow's digital
infrastructure, the Internet of Everything". Again, the company's involvement in such a project demonstrates its intention
to remain at the sharp end of the smart city industry, developing its own solutions and technologies that it will be able to
monetize on a tremendous scale should the smart city concept take off on a global scale.
Copenhagen, which actually won the award for 'best project' at the World Smart Cities awards in Barcelona in November
2014 for its 'Copenhagen Connecting' project, is also emerging as a leading municipality in the nascent smart city sector,
particularly with regard to green initiatives. An association with the city therefore has the potential to have a significantly
positive impact on Cisco's brand image, both in and out of the smart city sector.
Similar to the company's operations in Barcelona, rollout of Cisco's smart city solutions in Copenhagen remain at an
experimental stage, such as the Denmark Outdoor Light Lab, which was established in September 2014 which sees one
square mile of the city being used as an effective laboratory for 37 different types of LED outdoor lighting solutions that
have been installed over six miles of roads. Crucially, Cisco has installed a city Wi-Fi network covering the area which, in
the words of the Cisco's Wim Elfrink, is "connecting the light solutions, providing online controls, digitized information,
public access and video all converged onto one network." The architecture put in place by Cisco also reportedly reflects
the company's "proven experience from work done in [its] IoE-based Smart City engagements in Nice, Barcelona and
Chicago", suggesting that Cisco is continuing to develop and augment its smart city offering.

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Cisco intends to further increase its smart city presence in Copenhagen, with planned installations of Wi-Fi deployment in
the city's downtown city hall area in 2015 and further experimental smart city rollouts being planned by the municipality in
the areas of smart traffic monitoring, smart parking, smart waste management and tourism services.
Hamburg represents further opportunity for Cisco to demonstrate and refine smart
city solutions
The German city of Hamburg is another key city on which Cisco has focused its smart city operations. In a similar
manner to earlier examples, Cisco signed a memorandum of understanding in April 2014 with senior officials of the city of
Hamburg to install a number of so-called 'pilot projects' around the areas of "smart traffic, smart street lighting,
infrastructure sensing and remote citizen services". With these projects involving a number of other partners including
AGT, Philips and Streetline to name a few Cisco's Hamburg operations continue to demonstrate the company's
commitment to the advancement of not only its own smart city solutions, but also the industry as a whole through crossinstitutional collaboration (something that Cisco has, incidentally, built its UCS offering around).
Hamburg perhaps represents the greatest opportunity for Cisco to show off its smart city solutions to other municipalities,
especially given the broad range of applications that are planned to get pilot projects in the city.
Songdo, Korea City of the Future?

In addition to its efforts to upgrade existing cities to smart versions of their former selves, Cisco became a partner in the
Songdo International Business District in South Korea. The project, which is the most famous, and perhaps most
conventionally 'futuristic', new smart city project in the world, sees the building of a completely new city from the ground
up, with Cisco's home and business network providing the backbone for the connected city. Cisco's significant
investment in the project, coupled with the city's unique nature as the world's first purpose-built smart city, aligns the
company's brand with what is perhaps the most iconic of all smart city projects.
Cisco key investment partner in Songdo

Songdo, officially known as Songdo International Business District (Songdo IBD), is a new smart city, built from the
ground up in South Korea with US-based Gale International (Gale) as its main developer. The city, which is a $35bn
project and is due for completion in 2018, is designed with contemporary and future technologies in mind, and can be
seen as a blueprint or key testing ground for future, purpose-built smart cities that are expected to become a feature
amidst rapid urbanization across the globe. Crucially, Cisco has partnered with Gale to develop the Cisco Global Center
for Smart+Connected Communities in Songdo and announced that it was investing a total of $47m in the project in 2011,
becoming minority owner of a joint venture with New Songdo International City Development LLC (NSIC), U.Life
Solutions. Cisco's partnership with Gale was also expanded to China, a key growth area for smart cities, through the
Meixi Lake District project.
The investment also saw Cisco's networking products and technologies being integrated into NSIC's Songdo
construction projects, essentially positioning the company as the city's communications infrastructure provider. This,
coupled with the role of U.Life Solutions' role in delivering "Smart+Connected Community managed services to
businesses and residents in Songdo IBD", demonstrates Cisco's ability to occupy more than one stage of the smart city
value chain from initial digital infrastructure deployment through to managed smart city services, the latter of which
offers significant, recurring income opportunities for the company.

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Figure 8: Songdo IBD development
SOURCE: Gale International
MARKETLINE
Songdo offers cisco opportunity to showcase smart city and existing products
With Cisco essentially providing the digital communication and network infrastructure in Songdo, as well as the
company's part ownership of the U.Life Services joint venture, the city serves as a natural showcase for the company's
Smart+Connected Community products and solutions. The company has drawn attention to its technology network's
ability to monitor and curb energy and water consumption, as well as its ability to enable residents to digitally control their
homes, and a number of processes, such as waste management, that can be efficiently and largely automatically carried
out as a result of the city's connected nature.
Notably, Cisco has paid particular attention to the ubiquitous implementation of its TelePresence system in the city, which
enables residents and professionals to hold virtual meetings in a Skype-like fashion, albeit in a slightly more advanced
guise.
In 2011, Cisco announced that it expected to install over 10,000 Cisco TelePresence units in Songdo IBD by 2018.
Meanwhile, in 2012, Gale International chairman Stan Gale claimed that his company would be bringing over 20,000
TelePresence-ready residential units to market. Clearly, Cisco's TelePresence systems are being championed as a
crucial aspect of the Songdo project, but why? What advantage does installing a TelePresence unit in all homes, offices
and schools actually bring to residents and businesses of the smart connected city?

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Figure 9: Cisco TelePresence system in Chadwick International School, Songdo
SOURCE: Gale International
MARKETLINE
According to Cisco, there are multiple ways in which TelePresence can improve the livability and efficiency of a city. One
notion presented by the company is that TelePresence systems will enable residents to carry out day-to-day tasks that
benefit from face-to-face interaction but do not necessarily require people to be in the same room as each other such
as business meetings, GP appointments, etc. without the need for travel. This should, in turn, reduce the city's carbon
footprint and offer time-saving benefits for residents. Whether residents would actually want this is beside the point;
clearly, Cisco envisions such ubiquitous video communication technology as an integral aspect of the smart connected
city.
It is no wonder that Cisco is keen to see its TelePresence system take off in the smart city sector: TelePresence makes
up a significant part of the company's Collaboration segment, which itself accounted for 10.3% of Cisco's product
revenues in FY2014. Furthermore, Cisco reported that TelePresence revenues decreased in FY2014, after suffering a
similar fate in FY2013. It is possible that, should Cisco successfully establish itself as an industry leader in the
burgeoning smart city space, it could reverse the fortunes of its TelePresence business by promoting ubiquitous
TelePresence systems as a defining feature of smart connected cities, although this is far from guaranteed.
Nevertheless, what this does show is that Cisco's involvement in the smart city industry not only offers the company the
chance to gain an early-mover advantage in a nascent but potentially extremely lucrative sector, but also the opportunity
to bolster the appeal of, and demand for, its existing products, such as TelePresence, that are complementary to an
increasingly connected digital society.

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CONCLUSIONS
Cisco has established itself as smart city leader
There is no doubt that the fast-approaching evolution of cities into smart connected cities is set to offer significant
revenue opportunities for a whole host of companies be they utility providers, manufacturers of sensors, development
companies or software providers. However, one particular breed of company, the converged ICT networking company, is
perhaps in the best position to capitalize on the next municipal development trend. Cisco is, therefore, in a prime position
to experience exponential growth as a result of the movement towards smart connected cities. This growth could take
many forms and will depend on the success of the various different partnerships into which the company has entered, but
will predominantly center around networking and integrated data solutions.
Crucially therefore, its position as a leading networking player, as well as its expansion into end-to-end analytics
platforms and data centers through strategic partnerships means that Cisco should be able to straddle the line between a
number of stages in the smart city value chain. Add to this the fact that it is already developing, and implementing, its
own range of dedicated end-to-end smart city solutions again, bolstered through a number of strategic partnerships
and the company's position as an early leader and trailblazer in the industry becomes clear. The substantial investments
the company has made in developing smart city solutions will therefore pay-off in the near future.
Cisco's involvement in a number of high-profile smart city projects, especially that of Songdo in South Korea, have
effectively bolstered Cisco's brand presence at an embryonic stage of the smart city industry, and enabled the company
to physically demonstrate the advantages of its existing smart city solutions, and other existing products and services, to
potential future buyers. Cisco has also used such products as opportunities to develop and enhance its
Smart+Connected Community offering, in turn establishing itself as a driving force in the industry and gain a further earlymover advantage over its potential rivals.
However, with competition in the space likely to increase significantly, Cisco must continue to drive the scope and
development of its smart city offerings, in order to cement itself as the go-to end-to-end smart city solution provider. If it is
able to do this, it stands to benefit significantly from not only smart city network investment, but also from the continued
provision of smart city managed services, which will likely offer continual, recurring income opportunities. With India set
to build 100 smart cities before 2022 alone, the global potential of smart cities is huge for Cisco, validating the company's
efforts to get out in front early in the industry's life cycle.

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APPENDIX
Definitions
MarketLine Global Definition For the purpose of this report the global figure is deemed to comprise the Americas,
Asia-Pacific, Europe, and the Middle East & Africa. The Americas comprises Argentina, Brazil, Canada, Chile, Colombia,
Mexico, Venezuela, and the United States. Europe comprises Austria, Belgium, the Czech Republic, Denmark, Finland,
France, Germany, Greece, Ireland, Italy, Netherlands, Norway, Poland, Portugal, Russia, Spain, Sweden, Switzerland,
Turkey, and the United Kingdom. Asia-Pacific comprises Australia, China, Hong Kong, India, Indonesia, Kazakhstan,
Japan, Malaysia, New Zealand, Pakistan, Philippines, Singapore, South Korea, Taiwan, Thailand, and Vietnam. Middle
East & Africa comprises Egypt, Israel, Nigeria, Saudi Arabia, South Africa, and United Arab Emirates.
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Building cities of the future now, BBC News, February 21, 2013
http://www.bbc.co.uk/news/technology-20957953
Cisco Bets on South Korean Smart City, IEEE Spectrum, July 28, 2011
http://spectrum.ieee.org/telecom/internet/cisco-bets-on-south-korean-smart-city
SONGDO INTERNATIONAL BUSINESS DISTRICT, Gale International, accessed June 2015
http://www.galeintl.com/projects/songdo-ib/#!prettyPhoto
Cisco and Gale International Build on Success of Smart+Connected Communities in Songdo International Business
District, Cisco, August 12, 2009
http://newsroom.cisco.com/dlls/2009/prod_081109b.html
CISCO AND NEW SONGDO INTERNATIONAL CITY DEVELOPMENT JOIN FORCES TO CREATE ONE OF THE
MOST TECHNOLOGICALLY ADVANCED SMART+CONNECTED COMMUNITIES IN THE WORLD, Songdo IBD, July
4, 2011
http://www.songdo.com/songdo-international-business-district/news/pressreleases.aspx/d=262/title=Cisco_and_New_Songdo_International_City_Development_Join_Forces_to_Create_One_of_t
he_Most_Technologically_Advanced_SmartConnected_Communities_in_the_World
Songdo in South Korea leading charge to become city of the future, Metro, January 9, 2012
http://metro.co.uk/2012/01/09/songdo-in-south-korea-leading-charge-to-become-city-of-the-future-279407/
Cities of the Future: Songdo, South Korea Living, Cisco, January 18, 2012
http://newsroom.cisco.com/feature-content?type=webcontent&articleId=633196
CHADWICK INTERNATIONAL SCHOOL, SONGDO, Gale International, accessed June 2015
http://www.galeintl.com/projects/chadwick-international-school-songdo/

ML00019-016/Published 06/2015
Page | 27
Further Reading
Samsung Electronics Co., Ltd.: Is the SmartThings acquisition a smart thing? MarketLine Case Study
Cisco Systems, Inc. MarketLine Company Profile
Huawei Investment & Holding Co., Ltd. MarketLine Company Profile
Alcatel-Lucent MarketLine Company Profile
Telefonaktiebolaget LM Ericsson MarketLine Company Profile

ML00019-016/Published 06/2015
Page | 28
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MarketLine Case Study

Publication Date: June 2015

Cisco Smart City Case Study

Cisco Smart City Case Study

Cisco Smart City Case Study

Songdo, Korea City of the Future? ............................................................................................................................. 21

Cisco Smart City Case Study

Cisco Smart City Case Study

Difference between smart and digitally connected cities

Cisco Smart City Case Study

Internet of Things necessitates Big Data solutions

Smart Cities driven by expanding urban populations and

Rapid global urbanization in recent years

Cisco Smart City Case Study

Figure 1: Urban population as a percentage of total population by region, 1990-2020, %

Urban % of Total Population

Cisco Smart City Case Study

Figure 2: Urban population in Asia-Pacific and Europe, 1990-2020, million

Urban Population (million)

Limited resources necessitate economical and sustainable strategies

Two options for smart city development

Cisco Smart City Case Study

Smart initiatives can transform mature cities into smarter cities

Developing countries hold potential for all-new smart city development

Cisco Smart City Case Study

CISCO ALREADY FORCE IN THE INDUSTRY

Cisco in prime position to capitalize on smart cities

Cisco already leading networking player

Cisco Smart City Case Study

Figure 3: Cisco total revenue, FY2010-14, $bn

Ciscos Data Center and wireless products fastest growing

Cisco Smart City Case Study

IoE and Fast IT key to Cisco's future growth prospects

Cisco has partnerships with other key smart city players

Partnerships already key part of Cisco's strategy

Cisco Smart City Case Study

Cisco's existing partners also involved in smart cities

Cisco Smart City Case Study

Cisco will still face stiff competition in smart city networking

Nokia Networks and Alcatel-Lucent deal creates substantial networking competitor

Other large players interested in smart city industry

Cisco Smart City Case Study

ALIGNING CISCO BRAND WITH SMART CITIES

Cisco already offers smart city solutions

Cisco's Smart+Connected City services cover range of applications

Cisco Smart City Case Study

Figure 6: Cisco Smart+Connected City Parking high level architecture

Cisco Smart City Case Study

Cisco has made further partnerships in specialized hardware and applications

Cisco Smart City Case Study

Cisco has employed smart city solutions in multiple high

Cisco Smart City Case Study

Songdo, Korea City of the Future?

Cisco key investment partner in Songdo

Cisco Smart City Case Study

Figure 8: Songdo IBD development

SOURCE: Gale International

Cisco Smart City Case Study

Figure 9: Cisco TelePresence system in Chadwick International School, Songdo