Page 29 - SAMENA Trends - January-February 2025

REGIONAL & MEMBERS UPDATES SAMENA TRENDS

without losing the human touch that defines world-class customer last line of defence. Integrating AI will enhance human capabilities,
experiences. AI will present challenges for companies, particular- strengthening network security and policy enforcement. Network
ly regarding infrastructure and data readiness. AI will continue to downtime due to misconfiguration will approach zero. Over 40%
captivate businesses, promising unprecedented innovation and ef- of network outages are directly caused by misconfigurations, and
ficiency, and companies will continue to invest in AI-powered solu- can cost businesses 9% of their total annual revenue. AI has the
tions. As AI journeys progress, so too will the understanding that potential to virtually eliminate these manual misconfiguration mis-
the path is fraught with hurdles. Despite billions of dollars invested haps. Intelligent, automated tools can execute workflows through-
into AI models and AI-powered solutions in 2024, new data from out the network lifecycle and provide traceability for every action.
Cisco’s AI Readiness Index shows that AI readiness has declined AI-driven tools will revolutionize network management, learning
as now only 13% of companies are ready to leverage AI-powered from each configuration to reduce errors and ensure uninterrupt-
technologies to their full potential. In 2025 organizations will grap- ed operations. As AI adoption increases, we expect to see a rap-
ple with how best to secure the right level of compute power to id decline in misconfigurations and network downtime caused by
meet AI workloads. Companies will need to lean on their strate- human error approach zero. Companies will need help to balance
gic partners to identify and prioritize their AI use cases. IT teams sustainability and growth in an AI-powered era. The environmental
will experience increasing pressure to optimize the management, impact of AI is the elephant in a lot of rooms. AI requires high en-
hygiene, which is currently spread across multiple systems and lo- ergy consumption levels that impact carbon emissions across the
cations. Cybersecurity will face new threats, leading companies to board. The energy used by AI-dedicated data centers is expected
enhance human efforts with machines. Advancements in quantum to match the amount consumed by a country the size of the Neth-
computing are increasing pressure on security teams to address erlands in one year. Sustainability frequently arises in discussions
the vulnerabilities of traditional encryption methods against quan- with customers, who increasingly seek partners that can help them
tum attacks. As these technologies gain traction, organizations achieve net-zero commitments and sustainability goals. Success-
must adopt quantum-resistant security protocols to protect sen- ful businesses will prioritize energy-efficient products and circular
sitive data. The interconnectedness of digital ecosystems compli- business models. AI technology will be pivotal in enhancing energy
cates security, making attacks more sophisticated. According to efficiencies, ushering in an era of "energy networking" that com-
the latest Cisco AI Readiness Index, only 30% of companies glob- bines software-defined networking with direct current (DC) microg-
ally have the capabilities to tackle these threats. As cybercriminals rids for improved visibility into emissions and optimization of pow-
adapt their tactics, networks will become essential as the first and er usage, distribution, and storage.

Cisco Reports Second Quarter Earnings

Cisco reported second quarter results for the period ended January
25, 2025. Cisco reported second quarter revenue of $14.0 billion,
net income on a generally accepted accounting principles (GAAP)
basis of $2.4 billion or $0.61 per share, and non-GAAP net income
of $3.8 billion or $0.94 per share. "Cisco's strong quarterly results
were driven by accelerating customer demand for our technology,"
said Chuck Robbins, chair and CEO of Cisco. "As AI becomes more
pervasive, we are well positioned to help our customers scale their
network infrastructure, increase their data capacity requirements,
and adopt best-in-class AI security." "Q2 was another quarter of
solid execution which drove revenue and EPS above our guidance
ranges. Splunk continues to perform in line with our expectations
on the top line, and was accretive to Q2 non-GAAP EPS, earlier
than we had planned," said Scott Herren, CFO of Cisco. "Our
strong cash flows have led us to iCisco has declared a quarterly
dividend of $0.41 per common share, a 1-cent increase or up 3%
over the previous quarter's dividend, to be paid on April 23, 2025,
to all stockholders of record as of the close of business on April 3,
2025. Future dividends will be subject to Board approval. Cisco's
board of directors has also approved a $15 billion increase to
the authorization of the stock repurchase program. There is no
fixed termination date for the repurchase program. The remaining
authorized fixed amount for stock repurchases including the
additional authorization is approximately $17 billion.

29 JAN-FEB 2025