Thomson Reuters Streetevents covers Brent Bracelin of Pacific Crest as he discuses Cisco Systems, Inc. (NASDAQ:CSCO) and what might happen with the company in the next decade.  The transcript can be found below:

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Brent Bracelin – Pacific Crest Securities – Analyst

So, let’s start with the high-level IOT market opportunity. It’s still very early. It’s still a lot of different definitions around what it is, what it isn’t. But let’s walk through what is just you see the IOT market opportunity [from that perspective]?

Maciej Kranz – Cisco Systems, Inc. – VP Corporate Technology Group

Perfect, and Brent, as you mentioned, there is a lot of discussion about IOT and IOE, so let me maybe start with level setting us.

We recently celebrated the 25th anniversary of commercial Internet, right? And if you look at the last 25 years, a lot of focus on networking was for us humans to interact with each other, to interact with data, with the process.

And during that period, actually, the number of connected devices has gone up from around 1 million desktops in the 1990s, and I am aging myself now, to around 12.5 billion connected devices in the year 2010.

But what’s amazing is between now and the year 2020, the number of devices that will be connected will reach around 50 billion. But the interesting part of this is if you think about the last 25 years, most of these connected devices were smart phones, tablets, laptops, and so forth.

If you look at the next seven to 10 years, the majority of devices that will be connected will be cars. In three years when you buy a new car, it will be connected. Buses, trains with positive train control. Buildings, things within the buildings, assembly lines, oil rigs, and so forth.

So, and that’s what basically we are talking about in terms of Internet of Things, which is that now devices talking to devices, and these new types of devices will actually be the majority of the connected world in the next couple of years.

But maybe the last point here is that it’s not only about connecting and number of connected devices, but it’s also about what companies are doing and how they are using this world of connected devices to increase their revenues and profits.

And I promised Brent that I will only just mention this number once, but we’ve virtually done some research over the last couple of years, and we estimate that over the next 10 years, the — what we call the value at stake or the incremental revenues or profits across all segments and across the world over the next 10 years would be — incremental revenues and profits would be around $19 trillion that will be generated by these 50 billion devices in this connected world.