In the AI technology space, much attention is being given to AI service providers, whether it’s the likes of dedicated AI companies like OpenAI or companies such as Amazon and Apple that have developed their own AI-powered services in conjunction with their existing product offerings.
But there is another aspect of AI that has often been overlooked: the network that has enabled these AI service providers to process these requests efficiently. And as more companies seek to harness the ever-evolving capabilities of artificial intelligence (AI), the demands have also arisen for more powerful networks that can handle the traffic generated from the increased information requests by AI service providers.
As such, the competition that is heating up in the AI field is less between the service providers but among the network services these providers rely on. And two giants in the tech industry are set to compete head-on as they seek dominance in a dynamic and evolving technology space.
Cisco Goes All In on AI
On one corner of the ring is Cisco, which has long established itself as a prominent player in providing IT communications and networking services. These competencies have enabled Cisco to establish its dominance in the AI field and the company is looking to bolster its dominance further.
Announced in September 2023 and finalized in March 2024, Cisco acquired Splunk, a software company that produces software for searching, monitoring, and analyzing machine-generated data, in what is considered a blockbuster deal valued at $28 billion.
The acquisition is seen to bolster Cisco’s cybersecurity and observability offerings and create what company executives have described as a “distinctive, AI-powered data platform” that promises to provide “unparalleled visibility and insights” across the organization’s entire digital infrastructure, that will help the organization in proactively defending critical infrastructure, preventing outages, and improving their network experience.
Cisco will eventually roll out in the coming months in a number of new product innovations across the portfolio as Splunk’s technologies will be integrated into Cisco’s product line.
HPE Poises a Challenge
Then there is HPE or Hewlett-Packard Enterprise, the IT company that was spun off from the old computer hardware company HP and specializes in servers, storage, networking, containerization software, and consulting and support. While HPE itself is relatively young compared to Cisco, it has already made headway in the industry as it is considered a leader in enterprise wired and wireless LAN infrastructure according to Gartner for 18 consecutive years and ranking second overall in its 2024 rankings.
Now HPE seeks to bolster its position as it deepens its involvement in the AI space. The company announced in January 2024 that it would acquire Juniper in a $14 billion deal that would challenge Cisco’s established dominance in the networking space, especially when it comes to AI. With the acquisition, HPE gains Juniper’s cloud-native AI architecture Mist which is being touted as a system in itself with purpose-built hardware and software that improves on the user experience.
The acquisition is yet to be finalized as it needs to clear regulatory hurdles, particularly in the EU and the UK. But if and when the acquisition is approved, HPE is keen on pulling out all the stops in its battle with Cisco.
Tale of the Tape
Cisco and HPE are expected to bring everything they got for this impending face-off as they look to capitalize on their own strengths and resources.
For Cisco, its main strength is its portfolio breadth, that it has built on for more than 30 years. A recent report by Gartner expounds on this saying, “The scope of Cisco’s wired and wireless hardware and software product portfolio addresses use cases across market verticals, business organizations of all sizes, and network deployment scenarios of any type.” As such, it has more resources at its disposal to develop potentially new AI-based products and services, especially those that can compete directly with the offerings competitors might deliver.
HPE, on the other hand, is banking on its inclusive AI technologies. Already, its subsidiary Aruba has a standard license includes key management functionality, such as AIOps, that provides significant value out of the box. Juniper’s acquisition not only brings in the latter’s well-received Mist architecture but also the AI/machine learning capabilities it has developed, which helped propel Juniper to the number 1 rank in Gartner’s 2024 enterprise wired and wireless LAN Infrastructure rankings. Some analysts predict unique AI technologies HPE and Juniper could potentially deliver would be enough to knock Cisco out of its long-held dominance in the AI network space.
What It Means for the Customers
While it remains to be seen how the Cisco vs. HPE competition will transform the AI technology landscape, there is optimism that the competition will help spur innovations in the field.
Customers more than ever are excited and eager to know more about AI and the innovations and benefits it can deliver. In particular, customers are looking at the potential for AI innovation to improve enterprise networking, regardless of the company who will deliver these innovations to them.
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