cisco systems, inc.

overview

Cisco Systems, Inc. is a global technology leader that designs, manufactures, and sells networking equipment, software, and services. Founded in 1984 by Stanford University computer scientists, Cisco pioneered the concept of local area networks (LAN) connected over multiprotocol routers. The company is the dominant player in enterprise networking with approximately 77% market share in computer networking overall. Cisco’s portfolio spans routing, switching, data center infrastructure, security, collaboration, and cloud services. In 2024, Cisco completed its largest-ever acquisition of Splunk for $28 billion, transforming into one of the world’s largest software companies with significantly enhanced security and observability capabilities.

business model

Cisco operates a diversified technology business model with revenue streams from networking hardware (routers, switches, data center equipment), software licenses and subscriptions (security, collaboration, network management), and professional services. The company serves enterprise customers, service providers, hyperscalers, and government entities. Cisco’s business has been transitioning from traditional perpetual hardware sales to subscription-based recurring revenue models, particularly following the Splunk acquisition. The company generates revenue through direct sales, channel partners, and cloud services. Key product categories include switching ($4.8B Q1 FY2025), enterprise networking ($1.1B), security ($1.02B with Splunk contributing$960M in Q4 FY2024), collaboration, and data center infrastructure.

data center profile

us portfolio (from database)

specialization

primary focus: hyperscale, ai-ml

key differentiators:

• Silicon One ASIC portfolio with 14 variants from leaf/top-of-rack to AI-backbone applications

• Industry-leading 51.2 Tbps routing systems (Cisco 8223) for distributed AI workloads

• 400G and 800G high-density switching with roadmap to 1.6 Tbps

• Deep buffer programmable chips optimized for AI training traffic surges

• Open architecture support (SONiC) on Cisco 8000 Series

financial highlights

strategy

corporate strategy

Cisco’s corporate strategy centers on positioning as the infrastructure provider for the AI era through three primary pillars: (1) AI Training Infrastructure for hyperscale customers requiring ultra-high-bandwidth networking for GPU clusters, (2) AI Network Connectivity for enterprise AI application deployment, and (3) Cloud Provider Partnerships to meet increased capacity demands from AI workloads. The company is transitioning from traditional networking equipment vendor to comprehensive AI infrastructure platform provider, combining best-in-class hardware (Silicon One ASICs, Nexus switches, routing systems) with software capabilities (Splunk observability, security). Cisco’s $28 billion Splunk acquisition in March 2024 represents strategic shift toward software-driven recurring revenue and positions company as one of world’s largest software vendors. The strategy emphasizes open architecture and ecosystem partnerships (SONiC support, NVIDIA integration, Meta collaboration) while maintaining hardware differentiation through custom silicon development.

growth strategy

Cisco’s growth strategy targets $1+ billion in AI infrastructure orders in FY2025 from web-scale customers, building on Q1 FY2025 orders exceeding$300 million. The company is capturing AI data center networking demand through Silicon One portfolio expansion (14 ASIC variants), high-capacity routing systems (51.2 Tbps Cisco 8223 with P200 chip), and 400G/800G switching platforms. Geographic expansion focuses on hyperscale customer deployments and service provider network upgrades. Cisco is leveraging Splunk acquisition to cross-sell security and observability solutions into existing networking customer base while expanding total addressable market. The AI Infrastructure Partnership (AIP) collaboration positions Cisco as preferred networking technology partner for $100 billion global AI data center investment program. Key growth drivers include: displacement of legacy networking infrastructure with AI-optimized equipment, adoption of distributed AI training clusters requiring metro-scale interconnects, enterprise AI application deployment driving network capacity upgrades, and subscription software revenue from Splunk integration. Company guidance projects FY2025 revenue of$55.3B-$56.3B with improved margins from software mix.

major commitments

partnerships

technology partners

NVIDIA (AI Infrastructure / GPU Networking) : Strategic partnership for AI data center networking. Cisco showcased integration of G200 switches with NVIDIA NICs featuring NVIDIA Spectrum-X Ethernet powered by Cisco Silicon One at Cisco Live US 2025. Cisco provides high-bandwidth networking infrastructure optimized for NVIDIA GPU clusters requiring ultra-low latency and high throughput for AI training and inference workloads.

Meta Platforms (Hyperscale Networking) : Meta will deploy Cisco 8501 next-generation 400G fabric switches based on Silicon One G200 ASIC (announced October 2024). Switches are backward compatible with 200G and 400G infrastructure and support upgrades to 400G and 800G. Partnership validates Cisco’s open architecture approach and hyperscale networking capabilities for AI workloads.

AMD (Data Processing Units (DPU)) : Cisco N9300 Smart Switch series built on 4.8T Silicon One chip includes integrated programmable data processing units (DPU) from AMD. Partnership enables advanced data plane processing, security, and acceleration capabilities within networking infrastructure.

Microsoft (AI Infrastructure Partnership) : Cisco is technology partner in AI Infrastructure Partnership (AIP) consortium co-founded by Microsoft, BlackRock/GIP, MGX, and NVIDIA in September 2024. Partnership positions Cisco as preferred networking vendor for AIP’s $100 billion AI data center investment program. Microsoft serves as both AIP equity investor and anchor hyperscale customer.

Alibaba (Cloud Networking) : Alibaba plans to leverage Cisco Silicon One P200 ASIC to build single-chip networking platform for cloud data center infrastructure.

financial partnerships

leadership

Chuck Robbins

Chair and Chief Executive Officer

Named CEO in July 2015 and elected Chair of the Board on December 11, 2017. Previously held senior sales and operations leadership roles at Cisco. Robbins has led Cisco’s transformation toward software, subscriptions, and AI infrastructure. Serves as Chair of Business Roundtable. Under his leadership, Cisco completed largest-ever acquisition (Splunk $28B) and positioned company for AI era. Known for articulating vision that 2025 will be year enterprises deploy AI applications at scale.

Architect of Cisco’s AI infrastructure strategy and Splunk acquisition. Predicted over $1 billion in AI infrastructure orders from web-scale customers in FY2025. Key relationships with hyperscale customers (Microsoft, Meta) and strategic positioning for AI data center networking market.

Scott Herren

Executive Vice President and Chief Financial Officer

Long-tenured Cisco CFO overseeing financial operations including $28 billion Splunk acquisition financing. Announced retirement effective July 26, 2025. Under his tenure, Cisco maintained strong balance sheet with$17.9B cash and investments while executing major M&A and returning capital to shareholders via $0.40 quarterly dividend.

Led financial strategy through major transformation including Splunk integration. Will be succeeded by Mark Patterson on July 27, 2025.

Mark Patterson

Executive Vice President and Chief Strategy Officer (CFO-Designate)

Currently serves as Executive Vice President and Chief Strategy Officer. Named as successor CFO effective July 27, 2025, following Scott Herren’s retirement. Responsible for corporate strategy, M&A execution, and business development. Played key role in Splunk acquisition strategy.

Will lead financial operations during critical AI infrastructure growth phase and Splunk integration completion.

competitive position

Cisco maintains dominant position as world’s leading networking equipment vendor with approximately 77% market share in computer networking and 23% share in networking equipment specifically. In data center switching, Cisco competes primarily with Arista Networks (21.3% data center market share, growing 26.4% YoY), Juniper Networks (12% networking equipment share, being acquired by HPE for $14B), and Huawei (strong in international markets). Cisco's enterprise WLAN leadership at 39.5$300M+ Q1 FY2025 AI infrastructure orders from web-scale customers. Splunk acquisition transforms competitive position in security/observability market, making Cisco one of world’s largest software companies.

strengths

• Dominant 77% market share in computer networking with deep enterprise customer relationships

• Silicon One ASIC portfolio (14 variants) providing differentiated custom silicon across network infrastructure

• Industry-leading 51.2 Tbps routing systems (Cisco 8223 P200) with 65% power efficiency improvement

• 400G/800G/1.6T switching roadmap competitive with Arista and NVIDIA

• Splunk acquisition provides best-in-class security, observability, and SIEM/SOAR capabilities

opportunities

• AI data center networking market growing rapidly with multi-billion dollar TAM expansion

• Hyperscale distributed AI clusters requiring metro-scale interconnects playing to Cisco routing strength

• Enterprise AI application deployment driving network capacity upgrades (100G to 400G+)

• 800G and 1.6T switching adoption providing hardware refresh cycle catalyst

• Splunk cross-sell into existing networking customer base (security, observability)

threats

• NVIDIA vertical integration in AI networking (Spectrum-X, BlueField DPUs) disintermediating traditional networking vendors

• Arista Networks aggressive hyperscale market share gains with 26.4% YoY growth

• Commodity switching (white box, ODM direct) reducing margins in price-sensitive segments

• Cloud provider internal development (AWS Annapurna, Google custom ASICs) reducing external spend

• HPE-Juniper merger creating $30B+ networking competitor with enhanced R&D capabilities

sources

• Cisco Systems Corporate Website

• Cisco Systems, Inc.

• Cisco Investor Relations

• Cisco Systems, Inc.

• CISCO REPORTS FIRST QUARTER EARNINGS

• Cisco Systems, Inc. (2024-11)

• CISCO REPORTS FOURTH QUARTER AND FISCAL YEAR 2024 EARNINGS

• PR Newswire (2024-08-14)

• Cisco to Acquire Splunk

• Cisco Systems, Inc. (2023-09)

• Cisco Completes Acquisition of Splunk

• Cisco Newsroom (2024-03-18)

• Cisco to Collaborate with AI Infrastructure Partnership

• Cisco Investor Relations (2025-05)

• Cisco to Collaborate with AI Infrastructure Partnership to Drive Investment in Data Centers and Enabling Infrastructure

• Cisco Newsroom (2025-05)

• AI Infrastructure Partnership (AIP), MGX, and BlackRock’s Global Infrastructure Partners (GIP) to Acquire All Equity in Aligned Data Centers

• Business Wire (2025-10-15)

• Cisco Sets Benchmark with Industry’s Most Scalable, Efficient 51.2T Routing Systems for Distributed AI Workloads

• Cisco Newsroom (2025-10)