Cisco Research: A Major Infrastructure Shift Is Underway. AI Could Double the Strain or Solve It

Rhea-AI Summary

Cisco's latest research reveals a significant infrastructure transformation driven by AI adoption and increasing network demands. The study shows 97% of IT leaders consider modernized networks crucial for AI, IoT, and cloud deployment, with 91% increasing network investments. Network resilience is critical as businesses face outages costing $160B globally annually. Key findings highlight that 98% of leaders view secure networking as important, with 61% considering it critical. The research indicates 89% believe improved networks will drive revenue, while 93% expect cost savings from smarter networks. The study emphasizes that 98% consider AI-powered networks essential for future growth, though only 41% have deployed intelligent capabilities. Major challenges include siloed systems (58%), incomplete deployments (51%), and manual oversight reliance (48%). CEOs are aligned with this vision, with 97% expanding AI use and 78% relying on CIOs/CTOs for investment decisions.

Positive

• 97% of IT leaders recognize modernized networks as critical for AI, IoT, and cloud deployment
• 93% expect meaningful cost savings from improved network infrastructure
• 89% believe improved networks will directly drive revenue growth
• 98% of leaders view secure networking as important to operations and growth
• Strong C-suite support with 97% of CEOs expanding AI use

Negative

• Only 41% have deployed intelligent network capabilities despite their importance
• 71% of data centers currently cannot meet AI demands
• 77% faced major network outages resulting in significant financial impact
• 58% struggle with siloed or partially integrated systems
• 74% report outdated infrastructure is holding back growth

Most outages stem from congestion, cyberattacks, and misconfiguration — but IT Leaders believe the right infrastructure can protect performance and unlock future value.

News summary:

• Architectural shift already underway: Cisco research shows 97% of IT leaders see modernized networks as critical to deploying AI, IoT, and cloud, with 91% increasing network investment.
• AI Drives Demand for Resilience: One severe outage per business per year adds up to $160B globally¹ – driven by congestion, cyberattacks, and software misconfigurations – prompting an evolution in network architecture.
• Modern networks unlock business value: 89% say improved infrastructure will drive revenue, while 93% expect meaningful cost savings from smarter, more secure, and adaptive networks.
• CEO priorities align with IT action: In line with Cisco's previous CEO research, 97% are expanding AI and 78% rely on CIOs/CTOs for investment – backing IT leaders to lead from the network.

SAN JOSE, Calif., June 4, 2025 /PRNewswire/ -- Cisco (NASDAQ: CSCO), the worldwide leader in networking and security, today released a new global study revealing a major architectural shift underway across enterprise networks. As AI assistants, agents, and data-driven workloads reshape how work gets done, they're creating faster, more dynamic, more latency-sensitive, and more complex network traffic.

Combined with the ubiquity of connected devices, 24/7 uptime demands, and intensifying security threats, these shifts are driving infrastructure to adapt and evolve. The result: IT leaders are changing how they think about the network: what it is, what it enables, and how it protects the organization. The network they build today will decide the business they become tomorrow.

Six signals that an architectural shift is underway

1. The network has become a strategic priority: 97% say a modernized network is critical to rolling out AI, IoT, and cloud. 91% of IT leaders plan to increase the share of their overall IT budget allocated to networking.
2. Secure networking is mission critical: 98% say secure networking is important to their operations and growth; 61% say it's critical. 94% believe an improved network will enhance their cybersecurity posture.
3. AI intensifies demand for resilient networks: 95% of IT leaders say a resilient network is critical, at a time when 77% faced major outages – driven largely by congestion, cyberattacks, and misconfigurations – adding up to $160B globally from just one severe disruption per business, per year.
4. Leaders look to AI to grow revenue: 55% of IT leaders say a modernized network's greatest impact on revenue will come from deploying AI tools that automate and tailor customer journeys – enabling faster, more personalized experiences that can strengthen loyalty and drive growth.
5. AI is reshaping computing infrastructure: 71% say their data centers can't yet meet today's AI demands, and 88% plan to expand capacity – on-prem, in the cloud, or both.
6. Leaders want to make networks smarter: 98% say autonomous, AI-powered networks are essential to future growth – yet only 41% have deployed the intelligent capabilities – like segmentation, visibility, and control – to make their network adaptive.

"AI is changing everything — and infrastructure is at the heart of that reinvention. The network has powered every wave of digital transformation, accelerating the convergence of IoT, cloud, hybrid work, and defending against rising security threats," said Chintan Patel, CTO and Vice President Solutions Engineering, Cisco EMEA. "IT leaders know the network they build today will shape the business they become tomorrow. Those who act now will be the ones who lead in the AI era."

The Network is the Value: Modern Infrastructure Unlocking Growth and Savings
IT leaders are already delivering financial value from today's networks – largely by improving customer experiences (55%), boosting efficiency (52%), and enabling innovation (51%). But much of that value is at risk if it comes from infrastructure that hasn't been designed for AI or real-time scale. To unlock the full growth and savings they expect, leaders have identified critical gaps they must close: siloed or partially integrated systems (58%), incomplete deployments (51%), and reliance on manual oversight (48%). Smarter, more secure, more adaptive networks are the business case for investment. Nearly 9 in 10 (89%) say improved networks will directly drive revenue, and almost everyone (93%) expects meaningful cost savings – driven by smarter operations, fewer outages, and lower energy use.

The C-suite is turning to IT leaders and partners to lead the architectural shift 
Cisco's recent research shows CEOs are aligned with IT leaders on the importance of infrastructure in the AI era. 97% are expanding the use of AI, and 78% rely on their CIO or CTO for investment decisions. But they also recognize the risk: 74% say outdated infrastructure is already holding back growth. As enterprise networks undergo a major architectural shift, the C-suite is backing their tech leaders to lead from the network – and 96% believe trusted partnerships will be critical to success.

Discover more of the key findings from Cisco's Networking Research here.

About the research
This global study is based on a survey of 8,065 senior IT and business leaders responsible for networking strategy and infrastructure at organizations with 250 or more employees. The survey was conducted across 30 markets in December 2024 by Sandpiper Research & Insights, on behalf of Cisco.

About Cisco
Cisco (NASDAQ: CSCO) is the worldwide technology leader that is revolutionizing the way organizations connect and protect in the AI era. For more than 40 years, Cisco has securely connected the world. With its industry leading AI-powered solutions and services, Cisco enables its customers, partners and communities to unlock innovation, enhance productivity and strengthen digital resilience. With purpose at its core, Cisco remains committed to creating a more connected and inclusive future for all. Discover more on The Newsroom and follow us on X at @Cisco. 

Cisco and the Cisco logo are trademarks or registered trademarks of Cisco and/or its affiliates in the U.S. and other countries. A listing of Cisco's trademarks can be found at http://www.cisco.com/go/trademarks. Third-party trademarks mentioned are the property of their respective owners. The use of the word 'partner' does not imply a partnership relationship between Cisco and any other company.

¹ Estimated using the average cost of disruption reported by IT leaders, extrapolated globally based on the number of companies with 250+ employees (source: Statista) and aligned to the profile of Cisco's survey sample.

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SOURCE Cisco Systems, Inc.

FAQ

What are the main findings of Cisco's 2025 networking research?

The research reveals 97% of IT leaders see modernized networks as critical for AI deployment, 91% are increasing network investments, and outages cost businesses $160B globally annually. 98% view secure networking as important, and 89% believe improved networks will drive revenue.

How much are network outages costing businesses according to Cisco's research?

According to the research, just one severe network outage per business per year adds up to $160 billion globally.

What percentage of companies have deployed AI-powered network capabilities according to CSCO's study?

Only 41% of companies have deployed intelligent network capabilities like segmentation, visibility, and control, despite 98% saying autonomous AI-powered networks are essential for future growth.

What are the main challenges companies face in network infrastructure according to Cisco?

The main challenges include siloed or partially integrated systems (58%), incomplete deployments (51%), reliance on manual oversight (48%), and data centers unable to meet AI demands (71%).

How are CEOs supporting network infrastructure investments according to the Cisco study?

The study shows 78% of CEOs rely on their CIO or CTO for investment decisions, 97% are expanding AI use, and 96% believe trusted partnerships are critical for success.