SAN JOSE, Calif., June 4, 2025 /PRNewswire/ — In a world increasingly reliant on Artificial Intelligence, the backbone of our digital economy – the network – is undergoing a profound transformation. A new global study by Cisco (NASDAQ: CSCO), a leader in networking and security, reveals that IT leaders are actively reshaping their infrastructure to meet the demands of an AI-driven future. With AI agents and data-intensive workloads becoming the norm, networks are under immense pressure to be faster, more responsive, and, above all, resilient.
**Key takeaways from the report:**
* **Network modernization is critical:** A staggering 97% of IT leaders recognize that modernized networks are essential for deploying AI, IoT, and cloud technologies, with 91% planning to increase network investments.
* **AI’s impact on resilience:** Network outages, often caused by congestion, cyberattacks, and misconfiguration, are costing businesses dearly. The study estimates a global cost of $160 billion annually, highlighting the urgent need for more robust network architectures.
* **Unlocking business value:** Upgrading infrastructure promises significant returns. 89% of IT leaders anticipate revenue growth, while 93% expect substantial cost savings through smarter, more secure, and adaptive networks.
* **C-Suite alignment:** Echoing previous Cisco CEO research, 97% of C-Suite executives are expanding AI initiatives, and 78% are backing CIOs/CTOs for investment decisions – demonstrating the importance of IT leadership in navigating this shift.
The study paints a clear picture: the network of today will define the business of tomorrow. IT leaders are responding to the increasing complexities of AI and interconnected devices by re-evaluating their networking strategies. Cybersecurity threats are escalating, with organizations demanding 24/7 uptime while the old way of doing things just won’t cut it.
**Six Key Signals of a Network Transformation:**
1. **The Strategic Network:** A modernized network is viewed as crucial, according to 97% of respondents, with 91% increasing their networking budgets.
2. **Focus on Secure Networking:** Nearly every respondent (98%) believes secure networking is important for their operations and growth. 61% see it as critical; 94% believe that a better network will improve their cybersecurity setup.
3. **AI Amplifies the Need for Resilience:** A robust network is critical for 95% of IT leaders, yet 77% have experienced major outages, the cause being congestion, cyberattacks, and misconfigurations, which can cost businesses $160 billion a year.
4. **AI as a Revenue Driver:** 55% of IT leaders say that a modern network’s greatest revenue impact will come from using AI tools to personalize the customer journey.
5. **AI Transforming Computing:** 71% of IT leaders believe that their current data centers cannot keep up with AI demands. 88% plan to increase capacity via on-premise or cloud solutions, or both.
6. **The Rise of Smart Networks:** 98% of IT leaders have the desire for AI-powered networks but only 41% report having the abilities needed.
“AI is reshaping everything, and infrastructure is at the heart of that reinvention,” said Chintan Patel, CTO and Vice President Solutions Engineering, Cisco EMEA. “IT leaders recognize that the network they build today will shape the business they become tomorrow. Those who invest now in modernized infrastructure will lead the pack in the AI era.”
This shift isn’t just about avoiding problems; it’s about unlocking potential. Many IT leaders are already seeing financial benefits from their current networks, including improved customer experiences (55%), increased efficiency (52%), and greater innovation (51%). However, realizing the full value of these investments hinges on addressing critical gaps such as siloed systems (58%), incomplete deployments (51%), and the reliance on manual processes (48%). The business case is clear. By investing in smarter, safer, and more adaptive networks, companies can drive revenue while achieving substantial cost savings. Nearly 9 in 10 (89%) believe improved networks will contribute to revenues, and almost everyone (93%) thinks meaningful cost savings can be gained.
C-Suite executives are also paying close attention. A recent Cisco CEO study shows that business leaders are aligned with IT leaders on the importance of infrastructure in the AI era, and they want to use AI. 97% of C-Suite executives are expanding the use of AI, and 78% are relying on their CIOs/CTOs for investment decisions. This is a crucial moment for IT leaders to take the lead, backed by the C-Suite.
**About the Research**
The global study conducted by Sandpiper Research & Insights on behalf of Cisco in December 2024 involved 8,065 senior IT and business leaders across 30 markets worldwide who are responsible for networking strategy and infrastructure at companies with 250 or more employees.
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