Cisco Expands On-Premises AI Capabilities Through New Splunk Partnership
Cisco Systems has announced new features for its Splunk AI platform that can be used on-premises, expanding its work with NVIDIA and AWS. The move pushes more AI, observability, and agentic SOC capabilities directly into customer data centers. This could influence Cisco's mix of infrastructure, software, and security revenue as enterprises scale AI workloads on existing networks.
The development examines how Cisco Systems' investment narrative is affected by bringing Splunk AI on-premises through the Cisco AI POD platform. The company appeals to shareholders who buy into a story where AI networking, security, and observability gradually become a larger share of its $63.3 billion hardware-centric business.
The biggest risk for Cisco still sits in dependence on a small group of hyperscale buyers and pressure from lower-cost and open networking rivals. If AI orders slow or security and software traction stalls, the transition to higher-margin recurring revenue could look slower while Cisco absorbs Splunk costs and complexity.