Cisco Predicts AI to Triple Network Traffic, Fuels "Supercycle" for Infrastructure
Cisco executives announced an upcoming "network supercycle" driven by AI, predicting network traffic from AI will triple in three years and require significant data center and telecom ecosystem changes. The company is focusing on agentic AI systems that will generate substantial, sustained network demand and necessitate a re-imagined approach to security. Cisco is building a vertically integrated platform, including Silicon One and the new Cisco Cloud Control platform, to address these AI-driven network demands.
Key Takeaways
- AI-related network traffic is projected to triple in the next three years, driven by agentic AI systems.
- Agentic AI systems are expected to generate 450% more network traffic on average than human-performed tasks.
- Cisco introduced the Cisco Cloud Control platform, a new vertically integrated offering that supports 52 partners including AWS and Google Cloud.
- Cisco's recent acquisitions of Astrix Security and Galileo Technologies aim to address AI agent identity and "tokenomics" for security and control.
- Governments, particularly in Europe, are requesting "sovereign" cloud infrastructure from Cisco to protect data across AI and cloud services.
Why It Matters
The anticipated tripling of AI-driven network traffic will force streaming providers and other large consumers of bandwidth to re-evaluate their infrastructure investments. This shift towards agentic AI, with its sustained demand signals, means network capacity planning will require a new calculus beyond traditional peak-hour models. Operators should monitor Cisco's Cloud Control platform adoption for insights into how vertically integrated solutions handle distributed AI workloads, and watch for further consolidation or partnerships in AI security and agent management from major network vendors.
Additional Context
Following Cisco's 'network supercycle' announcement, the company reported record Q3 FY2026 revenue of $15.8 billion, a 12% year-over-year increase, with product revenue up 17% (Network World, May 2026). This growth was largely attributed to demand for AI infrastructure, with AI infrastructure orders from hyperscalers surging to an expected $9 billion for FY26, nearly double its prior forecast of $5 billion (CNBC, May 2026). CEO Chuck Robbins emphasized that roughly half of this AI infrastructure revenue stems from Cisco's Silicon One-based systems (Network World, May 2026). Total product orders saw a 35% year-over-year increase, including a 105% acceleration in service provider and cloud orders (Network World, May 2026). The company also announced a restructuring plan in May 2026, including layoffs, to reallocate resources towards AI, silicon, and optics (CNBC, May 2026). Robbins acknowledged that while some industry analysts debate whether this constitutes an "AI bubble," he views the risk of inaction in AI as far greater than engaging with the nascent market (SDxCentral, June 2026). Separately, Nokia warned in December 2025 that networks require evolution in the AI era, linking rampant demand for AI to component shortages and increased chip costs for network equipment vendors (Light Reading, December 2025).
Read full article at lightreading.com
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