Networking has long been considered a stable industry, characterized primarily by a rivalry between Cisco and its competitors. However, recent advancements, particularly in AI and generative technologies, are set to significantly transform this landscape. Here are five key networking trends anticipated for 2025, heavily driven by AI.
1. Acquisitions Set the Stage for Competition
The competitive dynamics among networking giants are shifting, particularly with significant mergers and acquisitions. Cisco, with a robust revenue of $54 billion, made headlines by acquiring AI analytics firm Splunk for $28 billion. This strategic move aims to enhance Cisco’s capabilities to leverage data and cybersecurity for its products.
Conversely, HPE’s acquisition of Juniper Networks for $14 billion aims to integrate AI functionalities into HPE’s existing services. As HPE’s CEO Antonio Neri asserts, the company aims to establish itself as a leading networking provider, diverting attention from Cisco.
Broadcom is another major player, seeing strong growth in its AI hardware and software revenue, projecting significant growth in AI-related earnings from $12.2 billion in 2024 to over $60 billion by 2027. This competitive pressure may trigger further consolidation in the industry.
2. Surge in High-Performance Networking Investments
AI’s rise has sparked an increased investment in high-performance networking. Analysts predict that by 2027, a substantial portion of enterprise wireless access points will feature multi-gig ports, doubling the rates seen in 2022. Additionally, switches with 2.5, 5, and 10 Gbps ports will see a significant rise, alleviated by increasing demands on local area networks (LAN).
Recent statistics indicate that revenues from 200/400 GbE switches have already seen significant annual growth, underscoring the impact of cloud and AI on connectivity demands.
3. Transformative Impact of AIOps
The arrival of AI will not only elevate network traffic but also introduce the need for low latency and adaptive complexity in network management. AIOps—applying AI to optimize network operations—is increasingly becoming essential for maintaining operational efficiency.
Industry analysts emphasize that AIOps will enable the creation of autonomous networks, ensuring that businesses can address and adapt to evolving network demands with minimal human intervention. This transformative technology is deemed a strategic requisite for organizations keen on maintaining agility in the digital age.
4. Ethernet Rivals InfiniBand for High-Bandwidth Connectivity
As Ethernet marks its 50th anniversary, the technology is now challenging InfiniBand’s dominance in high-performance computing and data centers. The establishment of the Ultra Ethernet Consortium, comprising major tech players like Cisco and HPE, aims to enhance Ethernet for AI workloads.
Much speculation suggests that by 2025, Ethernet may surpass InfiniBand as the premier choice for AI networking, driven by substantial improvements in its performance.
5. Shift Towards Unified SASE Solutions
Gartner’s Secure Access Service Edge (SASE) model—which combines multiple security functions into a single service—is seeing increasing interest in single-vendor solutions. Earlier offerings may have suffered from integration weaknesses; however, improved maturity in single-vendor offerings has shifted enterprise preferences.
By 2028, analysts estimate that over 85% of the market will gravitate towards these integrated solutions, largely due to their ease of management. As businesses seek streamlined solutions, six key vendors are anticipated to dominate this emerging market.
These trends indicate a rapidly changing landscape in networking, propelled by AI advancements that promise to redefine business operations and elevate strategic practices across industries.
