Cisco Sees Shift in Enterprise Spending as Organizations Weigh AI Workload Environments

Cisco Systems is witnessing a significant shift in enterprise infrastructure spending as organizations weigh the pros and cons of running AI workloads in various environments. According to CEO Chuck Robbins, the decision-making process is no longer just about economics but also includes security, sovereignty, and data governance concerns.

The company's order book reflects this trend, with Nexus switch orders for AI deployments rising more than 85% sequentially in the fourth quarter. Meanwhile, overall data centre networking orders increased by over 35% from a year earlier.

Cisco expects hyperscaler AI infrastructure revenue to reach $7.5 billion in fiscal 2027, up from $4 billion in fiscal 2026. The company is betting that this will create demand for infrastructure that can connect and secure AI workloads across multiple environments.