Extreme Previews Industry’s First On-Prem Enterprise AI Infrastructure for Networking

Extreme Networks (NASDAQ: EXTR) previewed its roadmap for on-premises enterprise AI, with Exchange zones planned for the first half of 2027.

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Planned for the first half of CY27, Extreme Exchange zones will bring AI skills to branch and edge sites, designed for data sovereignty, localization, survivability, and better economics

MORRISVILLE, N.C.--(BUSINESS WIRE)-- Extreme Networks, Inc. (NASDAQ: EXTR) today previewed its roadmap for on-prem enterprise AI. Extreme Exchange zones bring enterprise AI on-premises, allowing customers to choose their level of data sovereignty and control. Enterprises can run the same AI applications locally and in the cloud, wherever their data originates and workloads run, with full control over data residency and processing.

Organizations will also be able to pool compute resources, including spare capacity on Extreme access points and switches already deployed at branch offices, retail locations, and other distributed sites, to run AI applications and plug-ins. Extreme plans to make Exchange zones generally available in the first half of CY27.

“We’ve spent decades building networks that reach every corner of the enterprise, and those networks hold a lot of idle compute. Exchange zones will put that compute to work, letting AI run locally on infrastructure customers already own. That delivers sovereignty, local inferencing, and better economics than sending everything to the cloud. Customers control their data, inference, and cost inside a boundary they define, with a record of every exception. No one is better positioned to bring AI to the edge than Extreme. We already run the networks where that work happens,” said Nabil Bukhari, CTO and President of AI Platforms at Extreme Networks.

How Exchange Zones Work

Extreme’s solutions generate high-frequency operational data that is valuable far beyond network management, from security and business operations to logistics. Exchange zones will bring that data on premises, unlocking use cases that cloud-only architectures can’t yet deliver. Each zone combines an Extreme Universal Compute Platform or a qualifying customer-owned server with spare capacity from access points and switches, automatically placing workloads to meet customer-defined requirements for latency, data residency, and resilience. Models run locally by default, and cloud inference is available only when customer policy allows it and is logged whenever it occurs.

Why Exchange Zones Matter: Data Sovereignty. Operational Resilience. Cost Efficiency.

Cloud infrastructure is the right home for many AI workloads, but not all of them. Some applications can’t tolerate the delay of a round trip to the cloud, some generate more data than it’s economical to move, and regulated industries and distributed operations often need tighter control over where AI runs. Exchange zones will address this gap by running Exchange applications and their models inside a boundary the customer controls. Key benefits include:

• Sovereignty: Regulation and policy often require sensitive workloads to stay on premises. Exchange zones will keep AI inferencing local, and each zone is bound to a single site in a single country with rich observability across residency records, model usage, and data life cycle management, showing what stayed local, what crossed the boundary and why, and which model was resident.
• Survivability and Localization: Critical operations must survive cloud outages. Exchange zones will run time-sensitive AI locally, keeping retail stores, warehouses, and distributed sites operational when connectivity degrades.
• Economics: Sending high-volume data to the cloud adds up in transport, storage, and recurring inference charges. By running AI on compute customers have already deployed, Exchange zones will reduce data movement and cloud inference costs for the workloads that matter most.

“As AI moves toward the distributed sites where enterprise data is generated, organizations need to run AI applications on-premises to meet data sovereignty requirements and control inferencing cost - yet many AI marketplaces still assume a cloud-only model. Exchange zones is an innovative approach that brings a marketplace of AI applications to customer premises, using spare capacity in existing network infrastructure to keep data local,” said Brandon Butler, IDC Senior Research Manager, Networking and Infrastructure Services.

Extreme Exchange zones is part of Extreme’s enterprise stack, five integrated layers that build on one another: network infrastructure, where data is generated and compute already sits; Extreme Platform ONE™ for unified management and security; Extreme AI as the intelligence core; Extreme Agent ONE™ as the ambient and autonomous AI interface; and Extreme Exchange™ to extend AI skills and applications.

About Extreme Networks

Extreme Networks, Inc. (EXTR) is a leader in AI-powered cloud networking, focused on delivering simple and secure solutions that help businesses address challenges and enable connections among devices, applications, and users. We push the boundaries of technology, leveraging the powers of artificial intelligence, analytics, and automation. Tens of thousands of customers globally trust our AI-driven cloud networking solutions and industry-leading support to enable businesses to drive value, foster innovation, and overcome extreme challenges. For more information, visit Extreme's website at www.extremenetworks.com or follow us on LinkedIn, YouTube, X, Facebook, or Instagram.

Extreme Networks, Extreme Platform ONE™, Extreme Agent ONE™, Extreme Exchange™, and the Extreme Networks logo are trademarks or registered trademarks of Extreme Networks, Inc. in the United States and other countries. Other trademarks shown herein are the property of their respective owners.

View source version on businesswire.com: https://www.businesswire.com/news/home/20261021950153/en/

Media Contact
Blair Donald
PR@extremenetworks.com

Source: Extreme Networks, Inc.

Key Terms

data residency regulatory

Data residency describes the country or region where a company stores and processes its digital information, shaped by local laws and technical choices. Think of it like deciding which filing cabinet in which country holds a company’s important papers — that choice affects legal obligations, privacy protections, costs and how easily the company can move or share information. Investors watch data residency because it can create regulatory risk, compliance costs and constraints on expansion or cloud strategy.

inferencing technical

Inferencing is the process where a trained computer model uses new data to make a prediction, classification or decision, like a recipe being followed to produce a dish from available ingredients. For investors it matters because inferencing determines how well AI-driven products perform in the real world, how much computing power and cost are required, and can affect user privacy, regulatory exposure and a company's ability to scale or gain a competitive edge.