Thursday, March 14, 2013

CSCO: Internet over Everything - $14.4 trillion value by 2022


Cisco gets over-excited about IoE.
Cisco has been thinking big on what it's been calling the Internet of Everything. At a recent press event it came up with $14.4 trillion total value by 2022. This might make other interested parties nervous. 
Oh dear. Remember the Gartner hype cycle? It was a wonderfully Tolkienesque take on IT tech hype. The hype cycle starts, said Gartner, with some sort of technology trigger/breakthrough and then moves quickly up to the Peak of Inflated Expectations, plunges into the Trough of Disillusionment, trudges wearily up the Slope of Enlightenment until closure is reached on the Plateau of Productivity
The problem is that Cisco's latest numerical outpouring may be urging the industry to climb the dreaded Peak of Inflated Expectations. Just sayin'.
So hype or what? After all, Cisco has form on big number-itis - in fact it recently downgraded its projections on data growth across the Internet. Might it not be getting over-excited again?
Cisco's own definition of the 'Internet of Everything' wraps up the current Internet and all its doings (mobile and video) along with the emerging Internet of Things to come up with huge numbers of dollar worth.  All this connectedness, says Cisco, will result in a boost to corporate profits of 21 per cent by 2022, thus ker-chinging $14.4 trillion into the corporate world.
But how can a ten year projection on as yet vague applications and services be trusted to mean anything at all?  Too many variables operating across too long a time-span, surely?
It's all carefully done using a bottom-up methodology, claimed the networking giant. The presentation given this week itemised where Cisco expects the value to turn up.  According to Fredrick Paul at Read/Write Enterprise it was broken down thus:
- $2.5 trillion in better asset utilisation
- $2.5 trillion in employee productivity
- $2.7 in supply chain logistics
- $3.7 trillion in better customer experience.
- $3 trillion in enabling new innovations.
In fact, Cisco's Internet of Everything wraps together all the big IT/networking trends, such as big data, mobile and cloud as well as the impact of connected devices

Monday, March 4, 2013

Berkshire Hathaway’s ( BRK.A BRK.B): Annual shareholder letter

Mr. Buffet is optimistic on 2013.
It is in a good agreement with  ** I Know First system ** positive stance on the US economy.
Perhaps the most amazing fact is that the S&P 500 in gold stood at 1.1 ounces on October 1928, giving us a price higher than the ratio today. There has been a long stream of dividends since then, but the real price of the equity market is lower today than the level of 84 years ago!
Warren Buffet is hunting for elephants and a bear.
The chairman of Berkshire Hathaway’s  annual letter to shareholders Friday acknowledged sub-par performance in 2012, but proved as readable and quotable as any of his previous  epistles on investing.
You can look through the whole thing here, including as easily digested discussions of accounting as you’re ever likely to see.
But for those with limited time, here’s a look just at 1 of the pithier comments.
Mr. Buffet on the search for new investment opportunities for Berkshire’s huge cash reserves after the acquisition of half of Heinz  HNZ  last month:
 “Charlie and I have again donned our safari outfits and resumed our search for elephants".
Regarding Apple:

Berkshire Hathaway (BRK.B) has dropped 50% on multiple occasions says Warren Buffett, responding on CNBC to a question about Apple (AAPL). "You can't run a business to make the stock price go up every day," he says, though allowing Apple may have too much cash.