Agentic AI Network Shift
Cisco Study Reveals Enterprises Are Rapidly Adopting Agentic AI Despite Security Concerns
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Key Points
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Cisco partners reported that AI already accounts for more than half of revenue at 25% of their businesses, while 55% expect it to reach that level within five years.
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Cisco’s study identified multi-agent orchestration as the weakest capability across customer readiness, partner capability, knowledge and practical experience, highlighting a specific skills and governance gap as agentic AI adoption accelerates.
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Cisco partner executive Alex Pujols warned that AI investments now require a clear path to return, with customers scrutinizing costs, use cases and measurable business outcomes rather than funding AI as an open-ended experiment.
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Extreme Networks said large-enterprise opportunities increased 36%, while the company reported 14% top-line growth and said adoption of Platform ONE was occurring faster than cloud adoption, according to CEO Ed Meyercord.
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Cisco’s fiscal 2026 results included $63.3 billion in annual revenue and $17.3 billion in fourth-quarter revenue, up 18% year over year; the company is forecasting fiscal 2027 revenue of $72.2 billion to $73.4 billion.
Cisco's research reveals a sharp shift toward agentic AI in enterprise networks, with nearly half of surveyed customers already piloting or scaling the technology Cisco. The networking giant reported record fiscal 2026 results of $63.3 billion in annual revenue, driven partly by what executives call an "AI-driven networking super cycle" that's forcing IT departments to budget for major infrastructure upgrades Cisco.
Yet trust, governance, and security concerns loom large. Cisco partners expect AI to generate more than half their revenue within five years, but customers are increasingly demanding clear business outcomes and measurable returns on investment rather than open-ended AI spending Cisco.
Half of Enterprises Already Running AI Pilots
Cisco partner executives report that 25% of their businesses now earn more than half their revenue from AI work. Another 55% expect to reach that threshold within five years Cisco. The shift signals growing confidence in agentic AI — systems that can independently make decisions and manage network tasks with minimal human intervention.
However, partner Alex Pujols warned that the free-spending era is ending. "Customers are scrutinizing costs, use cases and measurable business outcomes," Pujols said Cisco. Companies no longer view AI as a blank-check bet but demand clear paths to return on investment.
Multi-Agent Orchestration Remains the Biggest Weakness
Cisco's study identified a critical gap: multi-agent orchestration — the ability to manage multiple AI systems working together — ranked as the weakest capability across customer readiness, partner skills, and practical experience Cisco. This matters because real-world AI deployments often require dozens of agents to coordinate network tasks simultaneously.
The gap signals governance and skills shortages as agentic AI adoption accelerates. Organizations lack blueprints for managing AI agents at scale, creating both a risk and an opportunity for vendors and consultants offering orchestration platforms Cisco.
Extreme Networks Capitalizes on AI-Powered Management Tools
Rival Extreme Networks reported 14% top-line growth, fueled by 36% increases in large-enterprise opportunities Extreme Networks. The company attributed momentum to its Platform ONE networking software and Agent ONE AI assistant, which provide real-time context for network decisions Extreme Networks.
CEO Ed Meyercord said adoption of Platform ONE is accelerating faster than cloud adoption did a decade ago Extreme Networks. Unlike closed vendor systems, the platform integrates with third-party tools, giving enterprises more flexibility to build custom AI workflows Extreme Networks.
Cisco Forecasts $72.2 Billion Revenue as AI Demand Soars
Cisco's fourth-quarter fiscal 2026 revenue hit $17.3 billion, up 18% year over year Cisco. For fiscal 2027, the company is forecasting revenue between $72.2 billion and $73.4 billion, signaling confidence that enterprise AI infrastructure spending will remain robust Cisco.
The forecast reflects belief that agentic AI will drive long-term infrastructure investment. However, it also signals pressure on IT budgets. Organizations must choose between upgrading networks for AI workloads or delaying other priorities Cisco.
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