Cisco Expands Splunk Integration in Enterprise AI Strategy
Cisco Systems (NASDAQ:CSCO) is expanding its collaboration with Splunk to increase its share of enterprise artificial intelligence spending. At the recent Splunk conference, Cisco introduced a new solution called the Cisco AI POD for Splunk, which integrates Splunk's data and security capabilities with Cisco infrastructure and Nvidia computing power. This move aims to help enterprises manage on-premises or private-cloud AI workloads more effectively while allowing Cisco to capture additional value from the growing AI market beyond hardware sales. Cisco reported $9.3 billion in AI infrastructure orders for fiscal 2026, including $4 billion in Q4 alone, and expects this figure to nearly double by fiscal 2027. The company is also working with AWS on Splunk-centered security products tailored for AI threats. However, challenges remain as Cisco's current growth is driven primarily by infrastructure sales, which face margin pressures from pricing competition and component costs. Hedge funds have increased their exposure to CSCO in recent quarters, including significant stake increases at Fisher Asset Management and D.E. Shaw. Short interest has also declined slightly.
Topics: AI AWS partnership Cisco AI POD infrastructure sales Splunk integration