Friday, 04 July 2025, 4:35 am

    Cisco study: AI driving urgent network overhaul globally

    A global shift in enterprise network architecture is underway as artificial intelligence (AI), automation, and real-time data reshape the demands placed on corporate IT infrastructure, according to a new study released Thursday by networking giant Cisco.

    The report reveals that 97 percent of IT leaders in the Philippines now view modernized networks as critical to deploying AI, internet of things (IoT), and cloud applications. Almost all respondents—99 percent—said they plan to increase their networking budget, signaling a shift in mindset: from viewing the network as plumbing to recognizing it as strategic infrastructure.

    “Today’s networks must be faster, smarter, and more resilient,” said Zaza Soriano-Nicart, managing director of Cisco Philippines. “As businesses across the Philippines adopt AI and digital technologies, the network becomes the foundation that makes transformation possible.”

    Security remains a top concern. Nearly 98 percent of respondents identified secure networking as vital to their growth, while 97 percent believe network upgrades will improve their cybersecurity posture. That’s amid rising pressure: 82 percent reported experiencing major outages in the last year, largely due to cyberattacks, congestion, and misconfigurations.

    Globally, the cost of one severe outage per business is pegged at USD160 billion.

    The study also highlights infrastructure shortfalls. Around 65 percent of IT leaders say their current data centers cannot meet AI’s computing demands, prompting 92 percent to plan for expansion—either on-premises, in the cloud, or through hybrid models.

    Despite high ambition, just 56 percent have deployed intelligent network features such as segmentation and real-time visibility. However, 99 percent say these capabilities will be essential for future competitiveness.

    Cisco’s findings also show growing alignment between the C-suite and IT leadership. Some 97 percent of CEOs globally are expanding AI adoption, while 78 percent now rely on CIOs and CTOs for investment decisions. However, 74 percent admit outdated infrastructure is already constraining growth.

    The study underscores a key message: AI is not just a workload—it’s an inflection point. And building smarter, more adaptive networks is becoming essential not just for IT resilience, but for business success.

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