Michael F. Wells SR VP – Government Business Office Siemens One, Inc. December 13 th , 2007

1. Megacities & Megatrends/Data Management Implications (Managing Data as a Global Asset) Michael F. Wells SR VP – Government Business Office Siemens One, Inc. December 13th, 2007

2. Agenda • Megacity and Megatrends (level set – what does this all mean)? • What are several Megatrends that will change everyone in this room’s life? • What are ramifications of these Megatrends that will have ramifications for the Architecture and Infrastructure Committee and Subcommittees? • Conclusion

3. What is a Megacity, What is a Megatrend - Level Set • Megacity – is usually defined as a recognized metropolitan area with a total population in excess of 10 million people. Some definitions also set a minimum level for population density (at least 2,000 persons/square Km). For example, in 1900, London was the largest city in the world with 6.4 million people. Tokyo is larger today (over 30 million people) than the ten largest cities in the world in 1900 (London, New York, Paris, Berlin, Chicago, Vienna, Tokyo, St. Petersburg, Manchester, Philadelphia). • Megatrend – is a large, social, economical, political, environmental or technological change that is slow to form. Once in place, Megatrends influence a wide range of activities, processes and perceptions, both in government and in society, possibly for decades. They are underlying forces that drive trends e.g., aging population, population growth, technology changes,…

4. What are several Megatrends that will change everyone in this rooms life Demographic change Urbanization • Until 2030, 90% of the world's population growth will occur in cities • Mid-2007, 50% of the world population is living in cities IT Technology • Digital Computing; Data Storage; Telecom - Metcalfe’s and Moore’s Law (et al) Technology • By 2015 80% of current technology is outdated Increasing mobility Growing demand for health-and elder care • Traffic congestion on city streets in Western Europe will increase 188% by 2010 – Transportation Systems become Intelligent • Urban air pollution causes an estimated 130,000 premature deaths each year in developing countries Increasing scarcity ofnatural resources Growing demand for safety and security • Cities directly or indirectly account for 60% of world's water use • Malfunctions of critical infrastructures pose high risks to urban economies: in 2003, a 3-day power outage in NY City caused loss of $1B Growing need for environmental care • Cities cause 80% of thegreenhouse gases, but they cover only 0.4% of the earth's surface

5. What are several Megatrends that will change everyone in this room’s life – 2015 State? 25 Selected Megacities, in million inhabitants 2015 Center of Gravity moves East 225 Richest – greater wealth than 2.7B of the poorest • More than 500 public- and private-sector experts from 25 global cities interviewed • The result shows how challenges and solution approaches are prioritized for infrastructure, city governance and finance.

6. Urbanization changes the world dramatically Mid 2007, 50% of the world population is living in cities Increasing mobility – New Technologies Increasing scarcity ofnatural resources – New Technologies Growing demandforhealthcare/eldercare Growing need forenvironmental care – New Technologies Shift in economicgravity Growing demand for safety and security - New Technologies

7. The Federal Data Architecture Subcommittee Ramifications – Alignment with DAS Strategic Goals (Decision Making, Availability, Collaboration, Data Integrity) • Interdependent System of Systems (everything is electronically connected) – what does this all mean? - IT Systems (in general) • IT Systems become Intelligent – they will have the capacity to learn • Information - I get what I want, when I want it, in the format I want, served-up from anywhere in the world (securely) – is this factored into the DAS Framework Data Standards (e.g., Secure Information Sharing Architecture (SISA)) • Interdependencies will force less feature requirements • Imagine a surgical procedure – sensors have queued up a potential health issue; appointment is electronically scheduled; stem cells have generated a replacement organ; transportation is automatically provided to and from surgery; billing is automatically accomplished; surgery is performed remotely; prescription post surgery is automatic and delivered directly to the home; post-op procedures (physical therapy) all instructed remotely; etcetera • Legal Framework, Intellectual Property (Globally) – how will this work, how will one license? • Everything is Wireless - What does this mean to the carrier, what does that mean to the LAN/MAN/WAN architecture? What does that mean to the Data Center/Closet? What happens to the RCDD? What happens to BICSI/Cat 5, 6, 7 Cable? What will the IT Professional look like? • NANO Everything – Human Hair Level Set (Nanometer is 100,000 times thinner than a human hair) – we have the capability today of creating 6000 interconnecting gears on the head of a pin; what might the IT Infrastructure even look like? • By 2015, 80% of current technology used today will become obsolete - what new technologies will have to be created to meet the megacity challenge e.g., energy from 1 minute of the sun would provide all energy requirements of the earth for one year (how will this energy be harnessed for IT)? • Security of IT Infrastructure becomes paramount – how might a CIO ensure non-repudiation across multiple systems, across multiple continents, across multiple technologies; does one out-source security?

8. Everything is Electronically Connected – Interconnected Systems Become Smart

9. The Federal Data Architecture Subcommittee Ramifications –Three Pillar Alignment (Governance, Data Architecture, Information Sharing/Exchange) • Computing Power – what might that next laptop, server look like? • Pentium Class – 100M instructions per second; 100M instructions per second can handle basic dictation; MD Grape-3 – 1 Quadrillion instructions per second; the human brain is approximately (10 quadrillion instructions per second); 20 years from now a laptop will out perform the human brain • Imagine a microprocessor that is a cubic micron in size • Imagine a terabyte of storage that is a cubic micron in size • Imagine fiber the size of a human hair streaming every issue of the Wall Street Journal in less than a second • Now imagine Photon Computing - latency becomes a thing of the past • What might an IT budget look like in the future, how does one plan? • Does Federal DAS Activities factor in the Future?

10. The Federal Data Architecture Subcommittee Ramifications –Three Pillar Alignment (Governance, Data Architecture, Information Sharing/Exchange) • Government Ramifications(e.g., US Government) • US Government IT Professional – what might that look like? • Does the Acquisition paradigm change – will the US Government pay for capability versus headcount (true outsourcing)? • Commercial Industry will drive innovation – how will the US Government ensure they continue to attract and retain the next generation IT Professional? • How does one train, do Technical Schools become the norm? • Will the US Government outsource their security? • IT becomes Global - what might that mean if Tier 1 is India, Tier 2 is Pakistan, Tier 3 is China? Will the US Government get on board? • Can US IT Leadership provided by DAS via the DRM affect other nations behavior i.e., can one manage data as a Global Asset?

11. Conclusion – get on board (the ‘bit’ has left the station) Any Questions Michael F. Wells, Sr. VP Siemens One, Government Business Office michael.wells@siemens.com Office phone: 703 262 8414 Mobile phone: 703 472 0431