Zinger Key Points
- Cisco expands AI partnership with Nvidia, integrating Spectrum-X Ethernet networking for enterprise AI workloads.
- Cisco's AI-driven growth fuels analyst upgrades as it strengthens security, cloud, and networking solutions.
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On Tuesday, Cisco Systems, Inc CSCO announced plans for an expanded partnership with Nvidia Corp NVDA to provide AI technology solutions to enterprises.
Cisco will develop data center switches with the Nvidia Spectrum Ethernet platform.
Cisco will collaborate with Nvidia to create and validate Nvidia Cloud Partner (NCP) and Enterprise Reference Architectures based on Nvidia Spectrum-X with Cisco Silicon One, Hyperfabric, Nexus, UCS Compute, Optics, and other Cisco technologies.
The expanded partnership aims to give organizations flexibility and choice as they look to meet the demand of AI workloads within and between data centers, clouds, and users.
The Nvidia Spectrum-X Ethernet networking platform based on Cisco and Nvidia silicon will form the foundation for many enterprise AI workloads. By enabling interoperability between both companies’ networking architectures, the two companies are prioritizing customers’ needs for simplified, full-stack solutions.
The expanded partnership allows customers to optimize their AI infrastructure investments with a typical architecture, using their existing management tools and processes, spanning front and back-end networks.
By making it easier to integrate and standardize on both Cisco and Nvidia technology, customers will benefit from current and future technology advancements in the Nvidia Spectrum-X platform, such as adaptive routing, telemetry, congestion control, and low latency, as well as Cisco’s broader networking, security, and digital resilience portfolio, including the Splunk data platform.
As businesses develop AI capabilities and train data models, a comprehensive security strategy becomes crucial.
Also, Cisco announced that it had won Federal Risk and Authorization Management Program (FedRAMP) authorization at the Moderate Impact Level for its Cisco Meraki for Government solution under the U.S. Department of Homeland Security’s Cybersecurity and Infrastructure Security Agency (CISA) sponsorship.
FedRAMP is a U.S. government program that promotes the adoption of cloud technologies across the federal government by providing a standardized approach to validating security and risk controls for cloud-based products and services.
Cisco Systems stock surged 31% in the last 12 months. Analysts, including JP Morgan, Piper Sandler, BofA Securities, and Goldman Sachs, raised Cisco’s price targets after the second-quarter results, citing AI-driven growth, strong cloud and security orders, and increasing subscription revenue.
Price Action: CSCO stock is up 1.64% at $64.28 at the last check on Tuesday.
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