Analysis AI Datacentre Networking Vendor Spotlight – Cisco

Explore Cisco’s AI datacenter networking strategy, centered on Silicon One P200, NVIDIA partnerships, and a shift toward software and co-packaged optics.

This report examines Cisco's outlook in the rapidly growing AI Datacenter Networking market, where AI servers are projected to surpass traditional servers in value by more than twice by 2030. Cisco’s strategy emphasizes Silicon One P200, a custom silicon with 51.2 Tbps capacity and up to 65% power savings, boosting its Total Cost of Ownership (TCO) advantage. Notably, Cisco is not directly competing with NVIDIA but partnering with them to develop Nexus HyperFabric AI Clusters and Secure AI Factory solutions. This approach simplifies deployment and integrates essential components needed to compete with Arista Networks and Juniper Networks in high-volume switching. Cisco’s long-term growth relies on shifting from hardware sales to recurring software revenue and leading the development of 1.6 Tbps Co-Packaged Optics (CPO) to sustain its power efficiency advantage.