LAS VEGAS - Cisco Systems Inc. (NASDAQ: NASDAQ:CSCO) announced a collaboration with NVIDIA Corporation (NASDAQ:NVDA) to launch a new artificial intelligence (AI) data center solution, aimed at simplifying the deployment of generative AI applications. The announcement was made at the Cisco Live event, showcasing the Cisco Nexus HyperFabric AI cluster solution, which integrates Cisco's networking capabilities with NVIDIA's computing power and AI software.
The new solution is designed to provide IT visibility and analytics across the entire AI infrastructure stack, enabling enterprise customers to build and run generative AI models and inference applications with ease. Cisco's cloud management capabilities facilitate deployment, management, and monitoring of data centers, colocation facilities, and edge sites.
According to a recent Global Networking Trends Report by Cisco, within the next two years, 60% of IT leaders expect to adopt AI-enabled predictive network automation, while 75% plan to implement tools for end-to-end network visibility. The Cisco Nexus HyperFabric AI cluster is a response to these trends, offering a unified compute and networking fabric that simplifies IT operations.
The solution features Cisco Nexus 6000 series switches, NVIDIA AI Enterprise software, NVIDIA Tensor Core GPUs, and the VAST (LON:VAST) Data Platform. It aims to streamline the development and deployment of AI workloads, providing a single console for design, deployment, monitoring, and assurance of AI infrastructure.
Select customers are anticipated to have early trial access in Q4 of CY 2024, with general availability expected to follow shortly. Cisco is also introducing AI-related skills training and certifications for IT professionals and partners to support the deployment and management of AI infrastructure.
This partnership between Cisco and NVIDIA demonstrates a shared commitment to advancing enterprise AI capabilities. The collaboration is expected to offer enterprises the necessary tools to build intuitive AI-native networks, anticipate system failures, and address issues promptly.
Cisco's initiative is part of their broader vision to automate and simplify networking, and it underscores the company's efforts to empower customers through AI-driven innovation, potentially opening new revenue opportunities.
The information provided in this article is based on a press release statement from Cisco Systems, Inc.
InvestingPro Insights
As Cisco Systems Inc. (NASDAQ: CSCO) continues to innovate with its new AI data center solution in partnership with NVIDIA, it's important for investors to understand the company's financial health and market position. Cisco has demonstrated a commitment to shareholder returns, having raised its dividend for 14 consecutive years, signaling confidence in its financial stability and future earnings potential. This is particularly noteworthy for investors looking for consistent income in addition to growth prospects.
Analyzing the company's performance, Cisco's market capitalization stands at a robust $188.51 billion, reflecting its significant presence in the industry. Despite some analysts revising their earnings estimates downwards for the upcoming period, the company's P/E ratio remains at a moderate 15.64, with a slightly lower adjusted P/E ratio of 14.46 for the last twelve months as of Q3 2024. Moreover, Cisco operates with a moderate level of debt, which is a positive sign for investors concerned about financial risk.
InvestingPro Tips reveal that Cisco is a prominent player in the Communications Equipment industry, which aligns with its strategic move to enhance AI capabilities in networking. Additionally, the company is trading near its 52-week low, which may present a potential entry point for value investors considering the company's long-term dividend history and industry position.
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