Cisco Study Reveals Major AI-Driven Revenue Shift for Technology Partners

Cisco's Global AI Partners Study Reveals Transformative Shift in IT Industry

Cisco, the global leader in networking and security, has released findings from its new Global AI Partners Study, highlighting a significant shift towards AI-driven technologies in the IT sector. The study, titled "Bridging the Customer AI Readiness Gap - The opportunities ahead for partners," surveyed over 1,500 IT partners across 29 markets, revealing optimistic projections for AI-related revenue growth 1

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Key Findings: AI Revenue Projections

The study indicates a substantial transformation in the revenue structure of IT partners:

• 27% of partners globally believe that 76-100% of their revenue will come from AI-related technologies in the next 4-5 years 1

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• In the Asia-Pacific, Japan, and China (APJC) region, 40% of partners expect over 50% of their revenue to be AI-driven within the same timeframe 2

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• 42% of partners anticipate AI-related technology investment demand to grow by more than 75% in the next 4-5 years 1

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Drivers of AI Technology Demand

The study identified three primary drivers of AI technology demand:

1. Infrastructure (54% globally, 31% in APJC)
2. Cybersecurity (48% globally, 17% in APJC)
3. Customer experience (30% globally, 9% in APJC) 1

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These areas present the greatest revenue opportunities for IT partners in the AI era.

Partner Confidence and Challenges

The findings reveal a high level of confidence among partners in their AI deployment capabilities:

• Partners report strong knowledge in building scalable AI-ready infrastructure, managing GPU resources, and understanding data sovereignty and privacy laws 2

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• However, challenges remain, including inexperience in deploying new technologies (62-64%), lack of knowledge of systems and processes (54-56%), and limited availability of technologies (52-53%) 1

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Investing in AI Readiness

To address these challenges and capitalize on the AI opportunity, partners are heavily investing in upskilling:

• Approximately 80% of partners are conducting internal training or inviting external vendors for specialized AI-related training 1

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• This aligns with the Cisco AI Readiness Index, which identified gaps in infrastructure, data management, governance, and talent among companies globally 1

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Industry Perspective

Alex Pujols, VP of Global Partner Engineering at Cisco, emphasized the importance of strengthening partners' practical deployment capabilities: "This study highlights the significant revenue opportunities for IT partners to lead AI deployment. By focusing on AI readiness, Cisco and its valued partner ecosystem are well-positioned to drive transformative outcomes for our customers and leverage the opportunities of the AI era" 1

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As the IT industry braces for this AI-driven transformation, the study underscores the crucial role of partners in helping customers achieve AI readiness and harness the technology's full potential.