Yahoo Finance Cisco (CSCO) Expands Data Center Portfolio With New Solutions
Cisco Systems CSCO recently announced several advancements aimed at transforming data center infrastructure, IT operations and enterprise defenses.
Cisco, in partnership with NVIDIA NVDA, has introduced the Cisco Nexus HyperFabric AI cluster solution, a new end-to-end infrastructure designed to scale generative AI workloads efficiently. This solution integrates Cisco’s AI-native networking capabilities with NVIDIA’s accelerated computing and AI software, complemented by VAST’s robust data storage platform.
The HyperFabric AI cluster is designed to streamline the entire process of AI infrastructure management. From design to deployment and monitoring to assurance, this on-premises solution offers a single platform for managing AI pods and data center workloads. Its cloud management capabilities enable the deployment and management of large-scale fabrics across data centers, colocation facilities and edge sites with ease.
By automating cloud-managed operations, the HyperFabric AI cluster ensures a unified compute and networking fabric. This fabric combines Cisco’s Ethernet switching, based on Cisco Silicon One, with NVIDIA’s powerful AI computing, providing an optimized environment for AI-driven innovation.
According to Cisco’s Global Networking Trends Report, 60% of IT leaders plan to implement AI-enabled predictive network automation within the next two years and 75% aim to deploy tools offering end-to-end visibility across various network domains.
Cisco Expands ThousandEyes & Security Capabilities
Cisco is expanding its ThousandEyes capabilities to deliver Digital Experience Assurance, a transformative approach that enhances IT operations from mere monitoring to proactive action. ThousandEyes leverages robust telemetry data and AI-native technology to ensure digital resilience, providing organizations with the tools to transition from reactive to proactive IT operations.
Cisco Systems, Inc. Price and Consensus
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ThousandEyes collects and processes billions of daily measurements from both owned and unowned networks, offering automated insights, proactive recommendations and closed-loop operations. This technology is integrated with Cisco’s networking platforms, such as Meraki and Catalyst, enabling comprehensive visibility and control.
A Forrester Consulting study commissioned by Cisco highlights significant improvements in IT productivity and user experience with ThousandEyes. The study found that the mean time to resolution (MTTR) of issues decreased by 50-80%, while IT team productivity increased more than 50%.
Cisco has also unveiled new capabilities for its Security Cloud, designed to enhance its security architecture in the AI era. The Cisco Hypershield, announced in April 2024, embeds security enforcement within virtual machines, Kubernetes clusters, and advanced silicon in servers and networking devices.
Hypershield support for AMD Pensando DPUs will be available in Cisco Unified Computing System (UCS) servers and from other leading server vendors by the end of 2024, with future support for Intel infrastructure processing units (IPUs).
Further strengthening its security offerings, Cisco introduced the Cisco Firewall 1200 Series, a high-performing, SD-WAN-enabled firewall family. This series, targeted for availability in October 2024, promises three times the performance of comparable firewalls, integrating switches, routers, and firewalls into a single appliance for enterprise branches. Additionally, the Firewall Threat Defense 7.6 software enhances security through AI-based threat prevention and streamlined branch network rollouts.
Cisco is also launching Security Cloud Control to unify management for the Cisco Security Cloud, starting with the network security fabric. This AI-native platform provides actionable insights and automates resolution across hybrid environments, aiming for initial availability in September 2024.
Enhancing Telemetry and Security Operations
Cisco’s unmatched visibility across IT environments, combined with its integration of Extended Detection and Response (XDR) with Splunk Enterprise Security, aims to create a unified threat detection and response workflow.
The new Cisco Security Cloud Technology Add-on for Splunk simplifies the integration of Cisco Security Cloud telemetry and analytics into Splunk, enhancing the Security Operations Center (SOC) capabilities.
Cisco has also partnered with Google to integrate browser-based threat and data protection from Chrome Enterprise with Cisco Secure Access, fortifying endpoint security as part of broader zero-trust initiatives. This collaboration aims to deliver innovative security solutions that address the evolving threat landscape.
Strong Partner Base Aids Prospects
Cisco is benefiting from an expanding partner base that includes the likes of Lenovo LNVGY, AT&T T and Ford Motor.
Cisco and Lenovo’s collaboration aims to deliver fully integrated solutions designed to streamline and expedite the digital transformation journey for organizations of all sizes. It is collaborating with AT&T to introduce a seamless digital buying experience for businesses, offering 5G Fixed Wireless Access through the Meraki MG52 and MG52E gateways.
It is also integrating the Webex app into select Ford and Lincon vehicles, providing immersive meeting experiences and seamless connectivity for remote work on the go.
Cisco’s Q4 Forecast Cloudy
Despite Cisco’s robust portfolio and expanding clientele, its top-line growth has been adversely impacted by the increasing macroeconomic uncertainty and weakness in networking revenues. In third-quarter fiscal 2024, networking revenues declined 27% year over year to $6.52 billion.
The stock has declined 4.8% against the Zacks Computer & Technology sector’s growth of 33.3% year to date.
This Zacks Rank #3 (Hold) company’s fourth-quarter fiscal 2024 revenues are expected between $13.4 billion and $13.6 billion. Non-GAAP earnings are anticipated between 84 cents and 86 cents per share. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for revenues is pegged at $13.52 billion, indicating an 11.1% decline from the year-ago quarter’s levels. The consensus mark for earnings is currently pegged at 86 cents per share, unchanged in the past 30 days.
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